Supply Chain Management Practices, Information Advancement and Organizational Performance of Large Flour Milling Companies in Nairobi City County.Kenya

Abstract

Companies not only must reestablish themselves to produce higher-quality goods and services, reduce waste, and adapt to the demand, but also to manage their supply chain management effectively as a result of the increasing number of competing companies growing both locally and internationally. As a result, the study sought to establish the supply chain practices affect the organizational performance of milling company listed Nairobi Stock Exchange. The specific goals will be to determine the influence of Green supply chain practices, supplier management practices, outsourcing practices, and Supply Chain Management on the organizational performance of milling company listed Nairobi Stock Exchange, as well as to determine the moderating effect of information technology on contemporary supply chain practices on the organizational performance of milling company listed Nairobi Stock Exchange. The theory of lean Contract Value, transaction cost theory, theory of supply chain constraints and resource based view theory were used in the study. A descriptive study design was used in this investigation. The study's target population was the 260 employees of the milling company listed Nairobi Stock Exchange, as defined by the Kenya Association of Manufacturers Directory, who worked in procurement, marketing, finance, security, ICT, or similar management. A structured questionnaire was used to collect data. A sample of 73 respondents was selected using Yamane (2012) formula. Descriptive statistics, inferential statistics was used to analyze the data. A pilot study involving 8 respondents was conducted to determine the data collection tool reliability. The study instrument had Cronbach’s alpha coefficients of between 0.756 and 0.836 on all study constructs and hence fit for the field study. Based on final results the study found that green supply chain practices, supplier management, and outsourcing positively and significantly influence the performance of large-scale flour processing firms in Kenya. Information advancement was identified as a critical moderating factor that enhances the relationship between these supply chain management practices and performance. Specifically, information advancement amplifies the effects of green supply chain, supplier management, and outsourcing on operational performance. The study also suggested that Flour processing firms in Kenya should fully embrace green supply chain practices, including waste management, efficient energy equipment, and the use of natural light where possible to improve sustainability and performance. The study also suggested that Firms should enhance supplier relations by engaging suppliers in product development, sharing information, and rewarding top-performing suppliers to foster commitment and motivation. The study also suggested that Firms should seek cost savings, efficiency, and sustainability when outsourcing services. This can be achieved through supplier performance evaluations and formal contracts. The study also suggested that regularly review information advancement strategies to optimize performance. This study contributed to supply chain management theory by confirming the relationship between supply chain practices, information advancement, and firm performance. It strengthens the theoretical framework and informs policy makers and large-scale flour processing firms about the importance of supplier management, green supply chain, and outsourcing in supply chain management policies and regulations. In practice, the study guides firms on how to enhance performance through effective supply chain management considering information advancement. The study suggested that Future research can explore the relationship between supply chain management and performance in other sectors beyond flour processing, such as agriculture, transportation, shipping, and manufacturing. Additionally, studies can investigate the impact of different moderators, such as dynamic capabilities, legal frameworks, government regulations, and competition, on the relationship between supply chain management and performance. This will contribute to a more comprehensive understanding of supply chain management dynamics