Influence of Buyer-Supplier Collaboration on Supply Chain Efficiency in Manufacturing Firms in Nakuru County, Kenya 1. Introduction Supply chain collaboration aims to leverage the capabilities and knowledge of key suppliers under market uncertainty (Cao & Zhang, 2011). Despite this, according to Vangen and Huxham (2011) most collaborative situations tend to fail or fall short of expectations, as the rationale behind the collaborative efforts is often misguided. Collaborative relationships are best suited where customer faces high risk; the product supplied is technically complex leading to high switching costs; supply of new product/service and new supplier may be required; where supply market for the product is fast changing; in terms of technology and legislation or supply market is restricted. A collaborative environment requires mutual trust and inter-firm dependency, both formal and informal communication, strong commitment towards same goals, inter-organizational capability and the management creating a network culture (Adhaya, 2013). The underlying objective of these long-term relationships is delivery of substantial benefits and advantages to the involved supply chain partners. Buyer-supplier collaboration is important in bringing about adaptation, trust and commitment between buyers and suppliers and this eventually leads to continuance of relationships. These were the findings of a study done by Mugarura (2010) which examined effect of buyer-supplier collaboration on relationship continuity in manufacturing firms in Kampala. Dimensions used were incentive alignment, joint decision making and information sharing in relation to adaptation, commitment, trust and relationship continuity most of which were found to have a positive and significant relationship. The study did not however examine how business continuity brought about by collaborative buyer-supplier relationship, would mean to a firm's performance. Furthermore, local studies such as those by Kamau (2013) on buyersupplier relations and organizational performance among large manufacturing organizations in Nairobi-Kenya found that buyer-supplier collaboration had assisted these manufacturing organizations in enhancing their performance. Their study identified five variables which result to successful buyer supplier relationships were identified and they include: Trust, communication, commitment, cooperation and mutual goals. The study concluded that most large manufacturing companies in Kenya have been embracing buyer-supplier relationships for more than ten years. They conclude that buyersupplier relationships have assisted these companies to enhance the performance of their organizations. It can therefore be implied that buyer-supplier collaboration plays some role in the relationship between third party logistics providers and supply chain efficiency in the said firms.
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