INFLUENCE OF TRANSACTIONAL SUPPLY CHAIN GOVERNANCE ON THE PERFORMANCE OF AGRO PROCESSING FIRMS IN KENYA

Abstract

The study aimed at determining the influence of transactional supply chain governance on performance of agro processing firms in Kenya. The specific objective was to establish the influence of transactional supply chain governance on the performance of agro processing firms in Kenya. The study was anchored on the transaction cost theory and theory of performance. The study adopted a survey research design. The target population was 344 agro processing firms grouped into twelve functional sectors in Kenya. The firms were registered members of with the Kenya Association of Manufacturers. This study used a census survey. The questionnaires containing both structured and semi-structured questions were used to collect primary data. A pilot study was carried out to test the reliability and validity of the research instrument. The study used Cronbach’s alpha (α) coefficient to test reliability, while face and content validity were used to check for validity of the research instrument. The primary data collected was analysed with the use of SSPS version 25. Data analysis was conducted using descriptive statistics and inferential statistics by use of moderated multiple regression analysis. The study revealed that transactional supply chain governance had a significant influence on performance of agro processing firms in Kenya. The study concluded that transactional supply chain governance influences the performance of agro processing firms in Kenya. The study recommends that agro processing firms should implement the transactional supply chain governance to enhance their productivity and profitability. The study findings are important to regulators to enhance the level of implementation of transactional supply chain governance in agro processing firms. The study also recommends future research study in other areas of manufacturing sectors and other organizations to establish the performing trends regarding the adoption of transactional supply chain governance. The study provides future researchers with a useful conceptual and methodological reference to carry out studies in this area of transactional supply chain governance