INFLUENCE OF SUPPLIER RELATIONSHIP ON OPERATIONAL PERFORMANCE OF MANUFACTURING FIRMS IN KAJIADO COUNTY

Abstract

Manufacturing firms in Kajiado County continue to grapple with significant operational performance challenges such as production delays, quality defects, cost overruns, and frequent supply chain disruptions. These persistent issues are largely attributed to ineffective supplier relationship management, often characterized by short-term transactional interactions, the absence of strategic partnerships, inadequate supplier evaluation mechanisms, and limited collaboration between manufacturers and their suppliers. This study sought to investigate the influence of supplier relationships on the operational performance of manufacturing firms in Kajiado County. Anchored on the Resource-Based View (RBV) theory, the research employed a cross-sectional survey design targeting a population of 1,478 staff across 13 manufacturing firms. Using purposive sampling and Yamane’s formula, a sample of 94 respondents was selected, yielding a high response rate of 96.8%. Primary data were collected using structured questionnaires based on Likert-scale items, and analyzed through SPSS using multiple regression analysis. The findings indicated a strong positive relationship between supplier relationships and operational performance (R = 0.684). The model demonstrated that supplier relationships accounted for 61.4% of the variance in operational performance (R² = 0.614). The regression analysis confirmed statistical significance (F = 3.044, p < 0.05), with supplier relationship strength showing a positive coefficient (β = 0.308, p = 0.002). The study concludes that supplier relationships are pivotal to enhancing operational performance. To optimize operational outcomes, manufacturing firms should institutionalize structured supplier partnership models. These may include regular supplier engagement forums, comprehensive supplier development programs, and collaborative planning committees.

Citation: Joseph, M., Dr. Vivian Cherono, PhD, & Ms. Gladys Kituku, PhD. (2025). Influence of Supplier Relationship on Operational Performance of Manufacturing Firms in Kajiado County. Academic Journal of Humanities and Social Sciences Research, 2(1), 1–12. https://doi.org/10.5281/zenodo.17041046