dc.description.abstract |
Organizational performance comprises real results or outputs compared to inputs and are a
measure of how well organizations attain their desired goals. Kenyan retail outlets are
facing fierce competition and rivalry and their performance is not guaranteed. Due to their
business model, supermarkets strengths lie in their supply chain management practices, the
center of which is inventory management. This study sought to establish supplier
relationship management on inventory management practices and performance of
supermarket outlets in the Mombasa County, Kenya. The study specific objectives were to
establish the effects of inventory audit management practice, lean inventory management
practice, inventory forecasting management practice and inventory process automation
management practice on the performance. The theories underpinning this study were the
theory of constraints, the Lean Theory, Balanced Score Card Theory and the Economic
Order Quantity Model. The study used an explanatory research design to address the
research problem. The target population was 136 supermarket outlets operating in
Mombasa County as at December 2020. The study adopted a stratified sampling technique,
with the help of Neyman allocation sample formulae the study used a sample of 101. The
unit of analysis was the supermarket outlets while the unit of observation was the
supermarket outlet managers. Primary data was collected using structured questionnaires
with Likert type 5- point scale. A pilot study was carried on 14 supermarkets and reliability
and validity was tested. Descriptive and inferential statistics were generated. Correlation
analysis and multiple linear regression model were used to establish the relationship
between the independent, moderating and the dependent variables. From the results, all the
predictor and moderator variables were positively and significantly correlated with
performance. Inventory audit management practice (r=.537, p=.000), lean inventory
management practice (r=.287, p=.008), inventory forecasting management practice
(r=.412, p=.000), inventory process automation management practice (r=.527, p=.000) and
supplier relationship management (r=.441, p=.000). The multiple linear regression results
showed that all the independent variables were positively and significantly related with the
dependent variable. Inventory audit management practice (β=.351, p=0.000), lean
inventory management practice (β=.257, p=0.007), Inventory forecasting management
practice (β=.325, p=0.000) and inventory process automation management practice
(β=.339, p=0.036). The moderated linear regression results showed that supplier
relationship management positively and significantly moderated the relationship between
Inventory audit management practice (β=.245, p=0.006) and inventory automation process
management practice (β=.122, p=0.033) and performance of supermarket outlets in
Mombasa county. Supplier relationship management did not significantly moderate the
relationship between lean inventory management practice (β=.062, p=0.434), and inventory
forecasting management practice (β=.070, p=0.440). The study concluded that inventory
audit, lean inventory, inventory forecasting and inventory process automation positively
significantly affect performance of supermarkets. Further, supplier relationship
management positively moderates the relationship between inventory audit and inventory
process automation management practice. The study recommends supermarket outlet
managers to engage in effective inventory practices and supplier relationship management
to improve on the performance of supermarket outlets in Mombasa County. Policy makers
and government authorities should focus on both automation and reshoring to allow for
more flexible adjustment to changing demand, mitigating firms’ risks in the event of a
pandemic or other external shocks. Further studies were recommended to be done in other
parts of the country to get a further understanding of the relationships under the study.
Further, a similar study should be done in other sectors of the industry especially the
manufacturing sector |
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