The Impact of supply chain finance mechanisms on the supply chain performance of manufacturing firms in Nairobi, Kenya
Date
2023
Authors
Wanjohi, C. M.
Journal Title
Journal ISSN
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Publisher
Strathmore University
Abstract
Supply chain financing (SCF) has gained increasing popularity and attention among practitioners and academicians, particularly after the global economic crisis during 2007– 2008. This study aimed to assess the adoption and impact of SCF on the supply chain performance (SCP) of manufacturing firms, with a focus on external collaboration as a moderating factor. The specific objectives were to determine the impact of pre-shipment and post-shipment SCF mechanisms on SCP in manufacturing firms in Nairobi, Kenya as well as the moderating effect of external collaboration on this impact. Guided by resource-based view and social exchange theories, the study used a multistage sampling technique to select 256 firms from a population of 725 registered manufacturing firms in the Kenya Association of Manufacturers (KAM) database as of December 2021. Primary data was collected through questionnaires and analyzed using SPSS, employing descriptive and inferential statistics. The findings revealed that pre-shipment SCF had a positive and significant impact on SCP, while post-shipment SCF had a negative and significant impact. Moreover, external collaboration was found to moderate the relationship between SCF and SCP. These findings suggest that the adoption of SCF mechanisms, particularly pre-shipment financing, can enhance supply chain performance in the manufacturing sector. The study highlights the importance of considering external collaboration as a facilitator for maximizing the benefits of SCF adoption. The implications of these findings are significant for manufacturing firms in Nairobi, as they provide insights into the strategic utilization of SCF mechanisms and the importance of fostering collaborative relationships with external partners. This study contributes to the existing body of knowledge on SCF and SCP, offering valuable guidance for practitioners and policymakers in the manufacturing sector.
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Full- text thesis
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Citation
Wanjohi, C. M. (2023). The Impact of supply chain finance mechanisms on the supply chain performance of manufacturing firms in Nairobi, Kenya [Strathmore University]. http://hdl.handle.net/11071/13409