Influence of Buyer-Supplier Collaboration on Supply Chain Efficiency in Manufacturing Firms in Nakuru County, Kenya

Abstract

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.

The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy

“…Previous empirical evidence has found a positive association between customer-focus and customer performance (e.g. Flight and Mudiyanselage, 2021;Armin et al, 2021;Kaburu et al, 2021). Therefore, based on the preceding discussion and empirical indication, this study posits that:…”

“…Second, the findings of this research study support the relationship between customer-focus and customer performance (see Table 7). This lends support to previous studies (Flight and Mudiyanselage, 2021; Armin et al ., 2021; Kaburu et al ., 2021) concerning the effect of customer-focus on customer performance. Customer-focus enables SMEs to concentrate on strategic customers who are capable of adding value and increasing profitability.…”

“…SMEs are expected to adopt a marketing technique that focuses on customers so as to maintain competitive advantage (Kaburu et al, 2021). The use of financial measures by SMEs is not only considered a short-term approach but also insufficient to encapsulate the customer perspective performance (Hristov et al, 2019).…”

“…, 2022). Previous studies (Flight and Mudiyanselage, 2021; Kang et al ., 2021; Kaburu et al ., 2021) even consider customer-focus more superior than the external resources of business organization when it comes to the generation of competitive advantage and performance. According to Santos et al .…”

“…Customer-focus is recognized as an internal resource of a business organization which has the ability to improve its competitive superiority (Husain et al, 2022). Previous studies (Flight and Mudiyanselage, 2021;Kang et al, 2021;Kaburu et al, 2021) even consider customer-focus more superior than the external resources of business organization when it comes to the generation of competitive advantage and performance. According to Santos et al (2020), this may be related to the ripple effect that originates from obtaining customer-focus advantage, which enables the development of competitive superiority, for example, cost, context-based product/service functionality, pricing and other extra and auxiliary service value.…”