Moderating effect of organization culture on the relationship between supplier development and organizational performance in food and beverage manufacturing companies in Kenya

Abstract

Supplier development may serve as a better tool that firms can leverage to improve and sustain their organizational performance. The purpose of this study was to determine the moderating effect of organization culture on the relationship between supplier development and organizational performance of food and beverage manufacturing companies in Kenya. The study employed a descriptive survey research design utilizing the resource dependency theory. The target population was procurement managers and procurement officers from 217 food and beverage manufacturing companies in Kenya registered under the Kenya Association of Manufacturers as of 2017. A sample of 248 respondents was drawn. Primary data were collected through the use of a questionnaire. The reliability coefficient was assessed using Cronbach’s alpha. The content validity of the instrument was determined by the researcher using expert judgment. The analysis of the data was done using descriptive and regression analysis with the help of SPSS V26. The regression coefficients showed that the interaction between supplier development and organization culture on the performance of food manufacturing firms was significant (β = 0.058, t = 4.68, P < 0.05). The organizational culture moderates the relationship between supplier development and the performance of food and beverage manufacturing firms in Kenya. The study concluded that supplier development influences the performance of food and beverage manufacturing companies. Further, organization culture moderates the relationship between supplier development and the performance of food manufacturing firms. The management of food and beverage manufacturing companies in Kenya should enhance supplier development so as to enable the provision of better services and also to be competitive and achieve organizational goals for their survival.