EFFECT OF LEAN STOCK PRACTICE ON SUPPLY CHAIN LEVERAGE OF SUGAR MANUFACTURING FIRMS IN KENYA
Abstract
Purpose of the Study: This research study assessed the effect of Lean stock practices on the supply chain leverage of sugar manufacturing firms in Kenya.
Statement of the Problem: Existing evidence from other contexts indicates that Lean stock practices significantly and positively influence sustainable performance in state corporate firms. However, most public sugar manufacturing firms in Kenya are facing supply chain leverage challenges, with over 70% of these firms on the verge of collapse, and an additional 10% have completely shut down. This raises the question of whether Lean stock practices, as an aspect of inventory control mechanisms, could be the missing link undermining the supply chain leverage of sugar manufacturing firms in Kenya; a phenomenon this study aims to investigate.
Methodology: A census survey was conducted on all 15 sugar manufacturing firms in Kenya, forming the unit of analysis. A sample size of 241 respondents, consisting of procurement officers, finance officers, production managers, and senior managers, was randomly obtained from the sugar manufacturing firms. Convenience sampling was then used to select officers and managers from these firms. Structured and semi-structured research questionnaires were used to collect primary data from the respondents, with questionnaires dropped and picked up later to improve the response rate. The qualitative and quantitative data collected was analyzed using descriptive statistics in SPSS version 26. Inferential analysis was further conducted through correlation analysis, regression analysis, and hypothesis testing. The results were presented using tables, graphs, charts, and histograms.
Results: The study's findings show that Lean stock practices had a statistically significant positive effect on the supply chain leverage of sugar manufacturing firms in Kenya (R = .779, R2 = .607, β3 = .326, p = .000).
Conclusion and Recommendations: The study concluded that Lean stock practices contribute to the supply chain leverage of sugar firms in Kenya. Furthermore, the elimination of waste in production leads to cost control. Thus, it can be generally concluded that Lean stock practice is a significant positive predictor of supply chain leverage in Kenyan sugar manufacturing firms
Keywords: Lean Stock Practice, Supply Chain, Leverage, Sugar Manufacturing Firms, Kenya
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