INFLUENCE OF SUPPLIER SELECTION ON ORGANIZATIONAL PERFORMANCE IN FOOD AND BEVERAGE MANUFACTURING COMPANIES IN KENYA
Abstract
Purpose of the study: In Kenya the food-processing sector, including food, beverages and tobacco, remains the largest component of the manufacturing industry in terms of structure, economic contributions, and performance within the manufacturing sector, as it comprises 1,200 businesses, encompassing everything from small family organizations to large companies. The study sought to determine the influence of supplier selection on the organizational performance of food and beverage manufacturing companies in Kenya.
Research Methodology: The study employed a descriptive research design. The target population was 651 respondents from whom a sample size of 248 respondents comprising 65 procurement managers and 183 procurement officers was selected from food and beverage manufacturing companies in Kenya. Stratified simple random and purposive sampling were used to select respondents. Primary data was collected by the use of a questionnaire. Analysis of data was done using descriptive and regression analysis.
Findings: The model, (R2 = .490) shows that supplier selection accounts for 49% variation in the organizational performance of food and beverage manufacturing companies in Kenya. There was a significant influence of supplier selection (β=.520) on the performance of food and beverage manufacturing companies in Kenya.
Conclusion: The study concluded that supplier selection influences the organizational performance of food and beverage manufacturing companies in Kenya.
Recommendations: The study recommended that manufacturing organizations should enhance the implementation of the policy framework to guide supplier selection through supplier identification, removal of hidden wastes and cost drivers in a supply chain to ensure the competitive advantage of the firms.
Keywords; Supplier selection, Organizational, Performance, Food and beverage, Manufacturing companies.
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