Buyer-supplier relationship trait, information technology and supplier performance among supermarkets in Uasin Gishu County Kenya.

Abstract

Despite the supermarkets contribution to the economy, their supplier performance has not been impressive. They are experiencing various difficulties in improving their supplier performance. However, some challenges are being attributed on supplier performance; this includes poor output quality, raw material duplication, late deliveries, late delivery, delivery unreliability, order incompleteness, high prices, failure to match specifications and late payments. Therefore, the study's primary purpose was to establish the effect of the buyer-supplier relationship trait, information technology and supplier performance among supermarkets in Uasin Gishu county, Kenya. The study has guided by theory of constraint, resource-based theory and theory of reasoned action. The study has been carried out using an explanatory research design. The target population for this study was 468 supermarkets. The sample size for the survey was 216 supermarkets. The study adopted stratified and simple random sampling methods to select the supermarkets per Sub County. Primary data was collected using questionnaires. The validity test has been carried out using factor analysis and correlation, while the reliability test has been carried out using Cronbach's Alpha. Primary data was used to collect data through distributing questionnaire to respondents (stores managers, sole proprietors and purchasing managers). The collected data was analyzed using both descriptive and inferential statistics. Descriptive statistics were frequency, mean, standard deviation, and percentage. The inferential analysis was done through correlation and hierarchical moderating regression analysis. The data analyzed has been presented in tables. The study findings revealed that Trust positively and significantly affected supplier performance (β 1 =0.146, p<0.05). Commitment positively and significantly affects supplier performance (β 2 =0.376, p<0.05). Mutual goal positively and significantly affected business performance (β 3 =0.104, p<0.05). Information technology had an enhancing moderating effect on the relationship between trust and supplier performance (R 2 change =0.010). Information technology had an enhancing moderating effect on the relationship between commitment and supplier performance (R 2 change=0.014). Information technology had an enhancing moderating effect on the relationship between mutual goal and supplier performance (R 2 change=0.008). The study concluded that buyer supplier relationships traits are very significant in enhancing the performance of supermarkets. Trust encourages individuals to take risks and explore new ideas and trust mitigates the fear of failure and creates an environment conducive to learning and growth. Through commitment it allows an organization to meet its goals and stick to its vision position and organizations should working toward common goals helps create an overall sense of purpose and meaning within a team. The study therefore recommends that there is need for supermarkets to have a long-term partnership with the major suppliers and aim at giving maximum attention to the relationship with suppliers so as to maintain it and enhance competitive advantage which will lead to improved supplier performance. It is also recommended that this study be replicated in different business sectors within other regions.