Supplier Relations Management and Performance of Companies in Nairobi County that Manufacture Food and Beverages


Authors : Olgah Akoth Owino; Dr. Paul Machoka

Volume/Issue : Volume 10 - 2025, Issue 10 - October


Google Scholar : https://tinyurl.com/3edy525a

Scribd : https://tinyurl.com/yms29nbb

DOI : https://doi.org/10.38124/ijisrt/25oct766

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.


Abstract : Supplier relations management involves fostering close partnerships between organizations and their suppliers, working collaboratively to achieve shared goals. Manufacturing sector has experienced sluggish growth in past decade compared to previous one. Additionally, many firms in this industry have recently reported declining gross earnings and sales revenues. The objective was to examine how supplier relations management affects performance and analyzed effects of: supplier assessment, and supplier development. The research was anchored on RBV, Goal-Setting and Institutional Theory. Study targeted 105 food and beverage manufacturing firms, from which 525 employees were considered. A sample of 255 respondents was selected. Ten industrial companies from Kiambu County participated in a pilot study. SPSS version 28 analyzed data after structured questionnaires were used to gather data. Findings were presented in tables. It established supplier relations management comprising supplier assessment and development, had a significant impact on the performance. To enhance performance, food and beverage manufacturing firms are advised to: Adopt a structured supplier assessment framework that includes, stability, compliance, sustainability, and innovation. Conduct regular audits and use supplier scorecards to track performance, promote transparency, and support continuous improvement. Provide constructive feedback and collaborate with underperforming suppliers to develop corrective action plans, thereby fostering long-term, mutually beneficial relationships. This study was limited to Nairobi City County. It is recommended that future research expand the geographical scope to other counties or conduct a nationwide study to provide broader and more representative insights into supplier relations management and performance.

Keywords : Supplier Relations Management, Performance, Supplier Assessment, Supplier Development, Manufacturing Sector.

References :

  1. Amoako-Gyampah, K., Boakye, K., Adaku, E., & Famiyeh, S. (2020). Supplier relations management and firm performance in developing economies: a moderated mediation analysis of flexibility capability and ownership structure”. International Journal of Production Economics, 20(8), 160-170.
  2. Bastholm, S., & Munksgaard, K. (2020). Purchasing’s tasks at the interface between internal and external networks", . Journal of Business & Industrial Marketing, 35(1), 159-171.
  3. Bordens, K., & Abbott, B. (2021). Research Design and Methods: A Process Approach Paperback – International Edition, . . London: : McGraw Hill.
  4. Bordens, K., & Abbott, B. B. (2017). Research Design and Methods: A Process Approach 10th Edition. London : McGraw-Hill Education.
  5. Brammer, S., & Walker, T. (2011). Sustainable procurement in the public sector: an international comparative study. International Journal of operations and Production Management vol. 31(4), 452 – 476.
  6. Changalima, I., Mchopa, A., & Ismail, I. (2022). Supplier development and public procurement performance: does contract management difficulty matter? Cogent Business and Management, 9 (1).
  7. Cooper, D., & Schindle, P. (2018). Business Research Methods. New Dehli:: McGraw Hill.
  8. Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. Thousand Oaks, CA:: Sage.
  9. Dawson, C. (2019). Introduction to Research Methods 5th Edition: A Practical Guide for Anyone Undertaking a Research Project. . London: Robinson.
  10. Garcia-Buendia, N., Moyano-Fuentes, J., & Maqueira, J. (2024). Building bridges in uncertain times: supply relationships, lean supply chain management and performance. International Journal of Lean Six Sigma,, 16(8), 234-249.
  11. Gillis, W. E., Combs, J. G., & Ketchen, D. J. (2014). Using Resource-Based Theory to Help Explain Plural Form Franchising. Entrepreneurship: . Theory & Practice, vol. 38(3), 449-472.
  12. Gimenez, C., & Tachizawa, E. M. (2012). Extending sustainability to suppliers: a systematic literature review. Supply Chain Management International Journal vol 17, 531–543.
  13. Hamed, T. (2016). Sampling Methods in Research Methodology. . New Delhi:: Taherdoost.
  14. Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations management research. . Journal of Operations Management, 41, 77-94.
  15. Kang, M., & Um, K.-H. (2023). Combining internal quality-oriented product design with external supplier involvement for enhancing operational performance: the moderating role of product modularity", . Journal of Manufacturing Technology Management, 34(2), 337-358.
  16. Khamaiseh, O., Alghababsheh, M., Lekhavat, S., & Rahman, M. (2025). Managing supply chain risk through inter-organisational justice. International Journal of Productivity and Performance Management, 74(3), 940-967.
  17. Kimwaki, B. M., Ngugi, P., & Odhiambo, P. (2022). Supplier relations management and Performance of Manufacturing Firms in Kenya. International Journal of Academic Research, 6(3), 16-26.
  18. Kisinga, D., Mchopa, A., & Mwagike, L. (2024). Supplier relations management and business performance of small-scale grapes processing firms in Dodoma, Tanzania: the moderating role of logistics capabilities. IIMT Journal of Management, 1(1), 21-46.
  19. Kothari, C. R., & Garg, K. (2015). Research Methodology. . New Delhi: : New Age International.
  20. Kozlenkova, I., Samaha, S., & Palmatier, R. (2014). Resource-based theory in focus marketing. . Journal of the Academy Of Marketing Science, 42(1), , 1-24.
  21. Li, X., Wu, Q., Goldsby, T., & Holsapple, C. (2022). Enduringbuyer–supplier relationship and buyer performance: the mediating role of buyer–supplier dyadic embeddedness and supplier external embeddedness. European Journal of Management Studies, 27(7), 291-316.
  22. Locke, E. A., & Latham, G. P. (2010). New Directions in Goal Setting Theory. . Current Directions in Psychological Science 15 (5), , 265- 268.
  23. Mafanele, P., Maziriri, E., Masakale, A., & Mabuyana, B. (2025). Pharma’s secret weapon”: unleashing supply chain potential through supplier relations management practices. Benchmarking: An International Journal, 32(11) .
  24. Mkandawire, S. B. (2019). Selected Common Methods and Tools for Data Collection in Research. Selected Readings in Education, 2., 143-153).
  25. Mushi, G., Mwaiseje, S., & Changalima, I. (202i). Impact of buyer-supplier relationships on organisational performance: experience from grapes processing industries in Dodoma Region, Tanzania”, . Journal of Co-operative and Business Studies (JCBS), 6(1), 856-903.
  26. Nguyen, T. (2023). How do well-performed food businesses manage suppliers in emerging economies. International Journal of Physical Distribution & Logistics Management, 53(10), 1129-1157.
  27. Pacheco, D., & Clausen, D. (2024). Sustainable purchasing supply management assessment in construction supply chains: a design science research approach", . Supply Chain Management, 29 (6), 943-962.
  28. Powell, D., & Coughlan, P. (2020). Rethinking lean supplier development as a learning system",. International Journal of Operations & Production Management, 40(7/8), 921-943.
  29. Qiao, J., Li, S., & Capaldo, A. (2024). Why and how do suppliers develop environmental management capabilities in response to buyer-led development initiatives?", . Supply Chain Management, 29 (7), 112-134.
  30. Romule, K., Bak, O., Colicchia, C., & Shaw, S. (2020). Supplier performance assessment: Evidence from a UK-based manufacturing company and its suppliers", . Benchmarking: An International Journal, 27 (2), 817-838.
  31. Salam, M. (2021). Analyzing manufacturing strategies and Industry 4.0 supplier performance relationships from a resource-based perspective. Benchmarking: An International Journal, Vol. 28 (5), 1697-1716.
  32. Saunders, M., Lewis, P., & Thornhill, A. (2018). Research Methods for Business Students. London: Financial Times.
  33. Srivastava, A., Kumar, P., & Mateen, A. (2021). Supplier development under cooperative and non-cooperative investment structures. Benchmarking: An International Journal 28 (10), 3137-3160.
  34. Toufighi, S., Vang, J., Govindan, K., Lin, M., & Bille, A. (2024). Exploring the impact of university-driven supplier development interventions on supplier performance: a case of the garment industry. International Journal of Productivity and Performance Management, 73 (11), 355-384.
  35. Tran, D., Thai, V., Duc, T., & Nguyen, T.-T. (2024). "The role of organisational and contextual factors in supply chain collaboration and competitive advantage: the case of the garment industry in Vietnam", . The International Journal of Logistics Management, 35(5), 1628-1652.
  36. Vanichchinchai, A. (2020). Exploring organizational contexts on lean manufacturing and supply chain relationship", . Journal of Manufacturing Technology Management, 31(2), 236-259.
  37. Wang, Y., Jia, T., Chen, J., & Chen, Q. (2022). Does supplier involvement enhance financial performance? The encapsulation effects of product modularity and smartness. Supply Chain Management, 27(2), 144-161.
  38. Wangu, E. (2020). Influence of Supplier Evaluation Criteria on the Performance of State Corporations in Kenya. MBA thesis JKUAT .

Supplier relations management involves fostering close partnerships between organizations and their suppliers, working collaboratively to achieve shared goals. Manufacturing sector has experienced sluggish growth in past decade compared to previous one. Additionally, many firms in this industry have recently reported declining gross earnings and sales revenues. The objective was to examine how supplier relations management affects performance and analyzed effects of: supplier assessment, and supplier development. The research was anchored on RBV, Goal-Setting and Institutional Theory. Study targeted 105 food and beverage manufacturing firms, from which 525 employees were considered. A sample of 255 respondents was selected. Ten industrial companies from Kiambu County participated in a pilot study. SPSS version 28 analyzed data after structured questionnaires were used to gather data. Findings were presented in tables. It established supplier relations management comprising supplier assessment and development, had a significant impact on the performance. To enhance performance, food and beverage manufacturing firms are advised to: Adopt a structured supplier assessment framework that includes, stability, compliance, sustainability, and innovation. Conduct regular audits and use supplier scorecards to track performance, promote transparency, and support continuous improvement. Provide constructive feedback and collaborate with underperforming suppliers to develop corrective action plans, thereby fostering long-term, mutually beneficial relationships. This study was limited to Nairobi City County. It is recommended that future research expand the geographical scope to other counties or conduct a nationwide study to provide broader and more representative insights into supplier relations management and performance.

Keywords : Supplier Relations Management, Performance, Supplier Assessment, Supplier Development, Manufacturing Sector.

CALL FOR PAPERS


Paper Submission Last Date
31 - December - 2025

Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe