Abstract: Procurement performance of the manufacturing firms is considered as a source of concern to both public and private sector clients. Manufacturing firm’s performance remains a prominent issue in service delivery all over the world. However, in a manufacturing firm, there is a growing concern regarding the reasons why the requisite objectives are not achieved as per the public expectation. Thus, the general objective of the study was to determine the effect of supply chain linkages and procurement performance in manufacturing firms: a case of Kenya breweries limited. The study-specific objectives were to determine the effect of customer linkages on procurement performance, to establish the effect of supplier linkages on procurement performance, to assess the effect of internal linkages on procurement performance, to establish the effect of information-based linkages on procurement performance in Kenyan manufacturing firms. The study was informed by the Transaction Cost Economics Theory, Institutional Theory and Resources based theory. The study type utilised descriptive research design and employed quantitative approaches. The target population encompassed 115 employees drawn from five major departments of EABL headquarters in Kenya. Simple random sampling technique was used to select a sample size of 86 employees. The study used questionnaires to collect primary data. Quantitative data were analysed using descriptive statistical techniques which included frequencies, means, and standard deviations. Pearson Product Moment correlations were used to establish the relationships between the variables. Multiple regressions were used to establish the cause-effect relationships. The findings indicated that customer linkages, supplier linkages, internal linkages and IT-based linkages had a positive and significant effect on procurement performance. Specifically, it is through customer linkage that the firm gains critical strategic competitive weapon for effective procurement performance. Also, supplier linkage enables the firm to be aware of the production capacity of its suppliers and allows them to contribute product ideas. Besides, internal linkages have made it possible for the firm to have an integrated system for the flow of products. Consequently, it is recommended for firms to involve customers in the design phase of its products. Moreover, firms need to provide their suppliers with future demand forecasts so that they can develop the capacity to meet the demand. As well, there is a need for a high level of delivery and logistic communication so that there is the easy retrieval of inventory status. Finally, it is recommended that firms engage in the implementation of collaborative procurement initiatives such as order schedule and delivery information sharing to improve further procurement performance.
Keywords: Customer Linkages, Supplier Linkages, Internal Linkages, Information-Based Linkages and Procurement Performance.
Title: EFFECT OF SUPPLY CHAIN LINKAGES AND PROCUREMENT PERFORMANCE IN MANUFACTURING FIRMS: A CASE OF EAST AFRICAN BREWERIES LIMITED
Author: Ann Njeri Kago, Dr. Anaya W. Senelwa
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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