Effects of advanced supply chain planning systems, supplier relationship, supply chain agility on firm supply chain performance of selected manufacturing firms in Nairobi County, Kenya

Abstract

Supply chain performances have been touted as improving the performance of organizations which participates in advanced planning system. In order to improve product and service quality, reduce waste, and adapt quickly to market changes, managers must also restructure their supply chains. Some research has been done on supply chain performance and how technology might help, however there are large gaps in the research. To compete in today's changing global marketplaces, most firms face numerous hurdles. Main aim of the study was to determine the conditional effect of supplier relationship on the relationship between advanced planning system, and the supply chain performance via agility. The study was grounded by transactional cost theory, Balance scorecard, dynamic capability theory and network theory. The study was anchored on quantitative paradigm and employed explanatory research design. A target population of 591 manufacturing firms of sample of 233 firms were studied. Questionnaires was used as a method of collecting data. The collected data was analyzed using multiple regression models. Results showed that supply advanced planning system significantly influences supply chain organizational performance positively (β = 0.6769, p = 0.000). Further, supply chain agility (SCA) significantly affected the supply chain organizational performance (SCOP) with coefficients and the probabilities β = 0.2730 (p = 0.000) . Further, the effect of SR (moderating effect of SR) on relationship between SCAPS and SCOP was strongly positive (β = .0600, p = 0.0049. The moderated mediation further was positive (β = 0.0451 ) and significant while mediating role of supply chain agility became insignificant to influence supply chain organizational performance. The difference association between insignificant mediating effect of SCA and significant moderated mediation effect can be attributed to the strong moderating role of SR on the link between supply chain advanced planning and the organizational performance. Meaning the supplier relation is critical player because of its effect. In conclusions that supply chain advanced planning improves performance of the overall value of the supply chain by reducing costs and increasing efficiency with leaner operations. It also balances supply and demand to maximise productivity gains and manage timely contributions to business operations. It is an incredibly significant for manufacturing firms to enhance supply chain organizational performance of the firms competing in global markets to respond to the competitive challenges they encounter in the industry and leveraging these skills to gain a competitive advantage over other.