Leveraging On Corporate Governance For Supply Chain Resilience Of Sugar Manufacturing Firms In Kenya

Abstract

Sugar manufacturing firms in Kenya have faced a myriad of challenges with regard to cost control, production inefficiencies, incompetent management and lack of information technology integration in production issues which are directly controlled by management. The influence of corporate governance on supply chain resilience of sugar manufacturing firms in Kenya thus cannot be underrated. The specific objective of the study was; to assess the effect of Corporate Governance on Supply chain Resilience of Sugar Manufacturing firms in Kenya. The research study methodology followed a descriptive approach with a target population of the study of 240 respondents, covering various departments within the Sugar firms. A census survey was conducted on all the 15 registered sugar manufacturing firms in Kenya. Data collected was analyzed by both descriptive and inferential statistics using statistical package for social sciences (SPSS Version 28). Descriptive statistics involved calculation of means, frequencies, percentages and standard deviation. Inferential statistics on the other hand included the use of Pearson correlation coefficient to determine the extent of relationship among the independent study variables, while multiple regression analysis was used to establish the relationship between corporate governance and supply chain resilience. Findings from data analysis in the study indicated that corporate governance was significantly responsible for the supply chain resilience of sugar manufacturing firms in Kenya. Consequently, yielding a positive relationship in the regression model. The findings from the regression model indicated that corporate governance, significantly and positively affected supply chain resilience of sugar manufacturing firms in Kenya. The study therefore recommended that the management of sugar manufacturing firms in Kenya in collaboration with the appointing authorities should embrace good practices when appointing managing directors in-charge of the sugar firms to achieve supply chain resilience through, continuous production, resource optimization, quality output and general bottom line improvement.