Effect of supply chain drivers on sales performance among fish traders in Gikomba Market, Kenya

Abstract

The fish trade plays a vital role in Kenya’s food security and urban livelihoods, with Tilapia as one of the most consumed fish species in Kenya. Gikomba Market serves as one of the largest informal hubs for tilapia distribution, linking producers, wholesalers, and retailers to urban consumers. However, these markets are characterized by inefficiencies in their supply chains leading to traders in these markets struggling to achieve consistent and sustainable sales performance despite the growing demand for fish in urban areas. This study therefore set to examine the effect of supply chain drivers on sales performance among tilapia fish traders in Gikomba Market, Nairobi County. Specifically, the study focused on four key supply chain drivers: route-to-market avenues, consumer preferences, supplier relationships, and government regulation. The study was guided by the Supply Chain Management Theory and the Resource-Based View. A positivist research philosophy was utilized to underpin the study. Further, a cross-sectional research design aided in examining the phenomena within the current period to get a current view of the effect of the selected factors. The population was drawn from 1,500 traders within Gikomba market who specialize in Tilapia fish trading. The sample was 315 as derived using the Yamane formula. The research applied a structured questionnaire using a 5-point Likert scale format. The questionnaire was developed in line with the objectives of the study. Descriptive and inferential analysis were used to quantitatively examine the gathered data. Tables and figures were used to present the findings. Findings from the study were that sales performance was rated highly overall, and that all the four supply chain drivers under investigation have strong, positive, and statistically significant correlations with sales performance. Regression results reaffirm this finding, confirming that supplier relationships have the strongest predictive effect on sales success, followed by consumer preference and finally route to market avenues which had moderate positive effects on sales performance. However, government regulations were revealed to have insignificant effects on sales performance. Recommendations were for traders to invest in supplier partnerships, quality differentiation, and to explore collectively logistic arranges. Furthermore, Policymakers were recommended to simplify regulatory processes by streamlining licensing and tax collection to reduce the perceived burden, to invest in market infrastructure, and ensure there are adequate training opportunities for traders.