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Moderating Effect of Supply Chain Pillars on the Relationship between Supply Chain Integration and Retail Outlets Performance: An Analysis of Selected Supermarkets in Kenya

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Publication Date
2024
Author
Okello, Sharone Adhiambo
Type
Thesis
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Abstract/Overview

Kenya’s Retail sector has experienced considerable challenges over the past years as evidenced by the collapse of giant supermarkets. Nakumatt, Uchumi and Tuskys supermarkets at one point dominated the sector but collapsed successively due to supplier unreliability, low sales volume, reduced profitability and poor management besides other reasons. The objectives of the study were: to establish the effect of Supply Chain information sharing on retail outlet performance; to determine the effect of supply chain decision synchronization on retail outlets performance; to find out the effect of supply chain incentive alignment on retail outlet performance; and to establish the moderating effect of Supply Chain Pillars on the relationship between supply chain integration and retail outlets performance in Kenya. The study adopted cross – sectional survey design with a target population of 2654 staff drawn from Naivas, Quickmart, Chandarana and Carrefour supermarkets across the four cities in Kenya. The study used Yamane (1967) formula to establish the sample size of 347 staff. The study used stratified proportionate random sampling. The study used closed-ended structured questionnaires to collect primary data. Data was analyzed using logistic regression. The study reported significant moderating effect of supply chain pillars on the relationship between supply chain integration and retail outlet performance (Est. = 0.986022; p≤0.01). Supply Chain Incentive Alignment with an estimate of 1.3888321 (p≤0.01) had the highest contribution to increasing retail outlet performance, followed by Supply Chain Decision Synchronization with an estimate of 1.290342 (p≤0.01) and lastly, Supply Chain Information Sharing with an estimate of 0.874501 (p≤0.05). The study concluded that the efforts invested in supply chain integration practices, including information sharing, decision synchronization, and incentive alignment, are crucial for improving service delivery, customer satisfaction, and profitability in retail outlets. The recommended that supply chain managers should ensure that the supply chain pillars are well managed for subsequent supply chain visibility and flexibility that would effectively contribute to improved retail outlets performance. The study suggested that future researchers may consider conducting longitudinal study to examine the long-term effects supply chain pillars on the relationship between supply chain integration and retail outlets performance.

Subject/Keywords
Supply Chain Pillars; Supply Chain Integration; Retail Outlets Performance; Supermarkets in Kenya
Publisher
JOOUST
Permalink
http://ir.jooust.ac.ke/handle/123456789/14124
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