Financial Supply Chain Management Practices and Operational Performance in the Low-Cost Airline Firms in Kenya

Abstract

Globally, airlines face unique challenges which require measures to achieve competitive advantage. The paper’s aim was to ascertain the level of adoption of Financial Supply Chain Management (FSCM) practices among Kenya’s low-cost airline companies. A descriptive research approach was used in this paper. This approach allows researchers to obtain accurate and systemic primary data from several low-cost airline companies in a set period of time. The target population for the study was 33 low-cost airlines operating in Kenya. The researchers gathered information through primary and secondary sources. The paper indicates that organizational success is positively influenced by Financial supply chain management. This, therefore, requires the supply chain and finance executives to make significant investments in FSCM in order to improve organizational performance. The study recommends that low-cost airlines must maintain an optimum working capital, cash conversion period, capital expenditure policies, and P2P cycles as well as to conduct regular demand and supply analyses as FSCM strategies so as to enhance operational performance and increase business competitiveness in the aviation industry.