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 ( = 0.308, p = 0.002). This implies that a one-unit increase in the strength of supplier
relationships leads to a 0.308-unit improvement in operational performance. The study concludes that
supplier relationships are pivotal to enhancing operational performance. Key success factors include
active supplier involvement in improvement initiatives and strong, cooperative manufacturer-supplier
partnerships. 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 aimed at fostering continuous
dialogue, joint decision-making, and long-term performance improvements.