SUPPLY CHAIN MANAGEMENT AND ITS IMPACTS ON PERFORMANCE

AMONG PUBLIC RESEARCH INSTITUTIONS IN BUNGOMA COUNTY,

KENYA

SUBMITTED BY:HOSEA WAFULA MASIKA

INDEX:6021030181

CENTRE CODE: 602103

COUSER CODE2903

PAPER CODE :308

SUBJECT:PROJECT

SUPERVISOR: MADAM VELMA KHAVUKWI

PRESENTED TO: KENYA NATIONAL EXAMINATION

COUNCIL FOR PARTIAL FULFILLMENT OF CERTIFICATE IN
SUPPLY CHAIN MANAGEMENT

JULY SERIES 2025

 DECLARATION
I do hereby declare that this project is my own original work and that it has not been presented in
any other institution for the award of Diploma, degree or masters.

NAME: HOSEA MASIKA

Sign: ……………...
date: ………………

RECOMMENDATION
The work presented here is correct to the best of my knowledge as the college supervisor

NAME: VELMA KHAVUKWI

SIGN:

DATE:
ii

DEDICATION
I dedicate this research project to my parents, sisters and friends for their prayers, encouragements
and moral support throughout the research.
 ACKNOWLEDGEMENT
I wish to express my gratitude to my entire family especially my father and mother for helping me
throughout my study. I also wish to express my heartful appreciation to my Supervisor Madam
Velma for assistance and guidelines on how to do a good research project.

ii
Table of Contents
DECLARATION..................................................................................................................................ii

RECOMMENDATION........................................................................................................................ii

DEDICATION ........................................................................................................................................
i ...............................................................................................................................................................

ACKNOWLEDGEMENT....................................................................................................................ii

ABSTRACTCHAPTER
ONE .................................................................................................................................... 1 .............v

1.3 Objectives of the Study ..................................................................................................... 4

1.4 Research questions ............................................................................................................ 4

1.5 Significance of the Study .................................................................................................. 4

CHAPTER 2: LITERATURE REVIEW ...............................................................................................

6

2.1 Introduction ......................................................................................................................................

6

2.2 The Concept of Supply Chain Management ..................................................................... 6

2.3 Supply Chain Management Practices ................................................................................ 7

2.3.1 Green Supply Chain Management Practices ..................................................................... 9

2.3.2 Long term Relationships/ Partnerships ........................................................................... 10

2.3.3 Information Technology .................................................................................................. 10

2.3.4 Logistics .......................................................................................................................... 11

2.4 Supply Chain Management Practices and Performance ................................................. 12

2.5 Conceptual Framework ................................................................................................... 13

CHAPTER THREE: METHODOLOGY ........................................................................................... 14

3.1 Introduction ................................................................................................................. 14

3.2 Research Design .......................................................................................................... 14

3.3 Population .................................................................................................................... 14

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 3.4 Data Collection ............................................................................................................. 15

3.6 Data Analysis ................................................................................................................ 15

CHAPTER FOUR: DATA ANALYSIS, INTERPRETATION AND DISCUSSIONS ...................... 16

4.1 Introduction ................................................................................................................. 16

4.2 Response rate............................................................................................................... 16

Table 4.1: Response rate ................................................................................................................

16

4.3 General information ...................................................................................................... 17

Table 4.2: Nature of institution ..................................................................................................

17

4.3.2 Gender ............................................................................................................................ 17

Table 4.3: Distribution of Respondents by gender ........................................................................

17

4.3.3 Length of service in current position........................................................................... 18

Table 4.4: Distribution of Respondents by length of service ........................................................

18

4.3.4 Extent of Supply Chain Management Practices Implementation ............................ 19

Table 4.5: Means of the level of Implementation of Supply chain management practices ......

19

4.4 Impact of Supply Chain Management Practices on Performance ...................... 21

Table 4.6: Coefficients estimates ................................................................................................

22

Table 4.7: Model summary ............................................................................................................

23

Table 4.8: ANOVA ........................................................................................................................

23

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 24

5.1 Introduction ................................................................................................................. 24

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 5.2 Summary of Findings .................................................................................................. 24

5.3 Conclusions .................................................................................................................. 25

5.4 Recommendation ........................................................................................................ 26

5.5 Limitations of the Study ............................................................................................... 26

5.1 Suggestions for further study ....................................................................................... 26

REFERENCES ....................................................................................................................................
27 ABSTRACT
Supply chain management (SCM) is identified as a strategic tool to firms to improve
organizational performance and secure competitiveness. The study had three objectives to
achieve: to establish the extent of supply chain management practices implementation among
public research institutions in Bungoma , to determine the impact of SCM practices on the
performance of research institutions in Bungoma and to evaluate the challenges faced by
public research institutions in Bungoma while adopting SCM . The research design involved
a descriptive research of public research institutions in Bungoma . Data was collected using
questionnaire through drop and pick later method. Tables were used to analyze all the three
objectives. The findings were presented on tables. The following were the major findings
obtained from the data analysis. Regarding SCM practices, it was found that while a number
of SCM best practices had been adopted and implemented to a great extent, majority of the
practices have been implemented to a moderate extent. It is worth noting that involvement of
major suppliers in planning; an important best practice had been implemented only to a small
extent. Thus few best practices had been fully implemented with majority still lagging
behind. Regarding the relationship between SCM practices and firm performance, three
variables out of the seven, namely logistics, lean suppliers and information technology were
found to have strong statistically significant relationships with performance. The other three
variables, namely Green supply chain practices, Long term supplier relationships and
outsourcing were found to have weak relationships which were not statistically significant.
The present study used only publicly funded research institutions, future studies should
consider expanding their scope to include other private research institutions. It would be
interesting to see whether similar results can be obtained using quantitative measures.

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 CHAPTER ONE

INDRODUCTION
The topic introduced the idea of supply chain management practices in relation to performance
among public sector research institution in Bungoma County. Organization can no longer effectively
compete in isolation of their suppliers and other entities in the supply chain management has steadily
increased.

1.0 Background of the study.

This chapter provides the conceptual background of the study by introducing the idea of Supply
Chain Management Practices in relationship to performance among public research institutions in
Bungoma . Organizations can no longer effectively compete in isolation of their suppliers and
other entities in the supply chain. Interest in the concept of supply chain management has steadily
increased since the 1980s when organizations saw the benefits of collaborative relationships
within and beyond their organizations.

A number of definitions have been proposed concerning the concept of the supply chain and its
management. Supply chain is defined as the functions within and products that provide services to
the customer (Cox et.al. 2010). Another source defines supply chain as, the network of entities
through which materials flows. Those entities may include suppliers, carriers, manufacturing
sites, distribution centers, retailers, and customers (Lummus and Alber, 2013). According to the
supply chain council (1997), the supply chain involves all stages of production and delivery of a
final product, from the supplier’s supplier to customer’s customer.

According to Quinn (2008) the supply chain can be seen as all those activities associated with
moving goods from the raw-materials stage through to the end user. This includes sourcing and
procurement, production scheduling, order processing, inventory management, transportation,
warehousing, and customer service. Importantly, it also embodies the information systems so
necessary to monitor all those activities. Lambert and Cooper (2012), define supply chain
1

management as an integrating philosophy to manage the total flow of distribution channel from
supplier to ultimate customer. Christopher (2009) stated that an effective SCM is a powerful tool
to achieve competitive advantage for all parties in the supply chain. According to Tan (2012), the
ultimate goal of SCM is to integrate various members of the supply chain and a seamless manner
to achieve high level of customer satisfaction and thus a long term competitive advantage.
1.1 Statement of the problem.

Bungoma being among the stronger economy country in kenya has taken a strong development path

by institutionalizing research institution in various aspects in a bid to meet its growing population

demands (USDS2010).

However, with an increasingly knowledgeable population such government agencies are facing over

increasingly demand for the accountability and quality services. The research institution have to

deliver on their card mandates while at the same time facing budgetary limitation, research

institution have to re-evaluate their operation and seek greater efficiencies so as to reduce costs.

However, none of the studies has sought to demonstrated the link between supply chain
management practices firm performance in research based institution, as evidenced in the above
studies there is no know studies that has focused on addressing this gap. This study therefore seeks to
answer the questions what are the suppliers chain management practices has to performance of
services delivery what challenges do public sector in Bungoma county face while implementing
Supply chain management practice
2
1.2 Aims of the study.

The Bungoma county public sectors is under pressure from both internal and external sources to
demonstrate improvement in their performance (moa dam at. Al 2005) local entities and other
government department’s measures and other reporting for improving the performance and
increasing accountability.

Another aim is to measure performance to evaluate whether departments are performing as

expected to ensure that the employees are the stake holders to do thing necessary to improve
performance to determine the budgeting priorities such as on which programs the agency should be
spending the public’s money to convince stakeholders that the agency is doing a good job.

3
1.3 Objectives of the Study

I. To establish the extent of supply chain management practices implementation among research
institutions in Bungoma .
II. To determine the impact of SCM practices on the performance of research institutions in
Bungoma .

III. To evaluate the challenges faced by public research institutions in Bungoma county while
adopting SCM
1.4 Research questions

I. To what extent is supply chain management practices implemented among research

institutions in Bungoma?
II. What are the impacts of supply chain management practices on the performance of research
institutions in Bungoma ?
III. What are the challenges faced by public research institutions in Bungoma while adopting
SCM?

1.5 Significance of the Study

• The study will be of great use to publicly funded research institutions in Bungoma as it will
provide insight into SCM practices, challenges faced and how such practices are influencing
organizational performance.

• The study will also be useful to the government and its policy-making agencies as it serve to
guide policy makers on existing SCM practices among research institutions and challenges
faced in implementing SCM practices.

• The academic community will benefit from the results of the study as it will serve as a
reference point on empirical data pertaining to SCM practices and it will also identify areas
for further study.

4
 1.6 limitation of the study.

• There is no enough finance to facilitate the budgeting of supply chain management practices.
• Limited skilled personal that can undertake activities in supply chain management.

5
 CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction
This chapter discusses the impact of Supply Chain Management in Organizations including the
Public Sector. It looks into the challenges in SCM performance and then provides a summary of
the main items and identifies the knowledge gap. The chapter also presents the Conceptual
Framework that depicts the relationship between SCM practices and organizational
performance.
2.2 The Concept of Supply Chain Management
Over the past few years, more emphasis has been placed on gaining competitive advantage by
organizations locally and internationally by incorporating Supply chain management practices in
their operations. Many organizations have realized the importance of creating an integrated
relationship with the suppliers and customers. This simultaneous integration of customer
requirements, internal processes and upstream supplier performance is referred to as supply
chain management (Tan et.al 2010). With dwindling support from central government to its
agencies, there is need for better ways for managing operations so as to reduce cost and increase
efficiency.
Adoption of good SCM practices can thus provide a good avenue to meet these goals.

The term ‘Supply Chain Management’ (SCM) was introduced by consultants in the early 1980s
(Lambert-Cooper 2012). It has its origins in the logistics literature (Bowersox et al. 2009) and
logistics has continued to have a significant impact on the concept. The scope of SCM has
widened over time from intra-organizational focus to more, interorganisational issues (Dubois et
al. 2014). According to Tan (2012) there does not seem to be much consistency in the use of it or
its exact meaning. Tan also argues that although there are some shared ideas about what SCM is
about, there is no universally accepted definition. Absence of universally acceptable meaning of
SCM may negatively influence comparability of SCM studies. However, this study adopts the
wider meaning of SCM which includes all aspects encompassed in most studies.
Supply chain can be defined generally as where three or more organizations are directly linked
by one or more of the flows of products, services, finances and information from a source to a
customer (Mentzer et.al; 2015). In this context of study, SCM involves managing complex flow
of information, materials and money across multiple areas both within and among organizations.

6
 The aim is to achieve goals related to total system performance. With the current business
environment, organizations cannot battle entirely as individuals. They must rely on the other
organizations in their supply chains to successfully compete in the global market.
The concept of SCM builds on the theories of the firm, especially transaction cost economics,
Porter’s value chain and the network approach which has become established as a useful
business paradigm. The other theory is Best practices theory - a method that has consistently
shown results superior to those achieved with other means, and that is used as a benchmark. In
addition, a "best" practice can evolve to become better as improvements are discovered. Best
practice is considered by some as a business buzzword, used to describe the process of
developing and following a standard way of doing things that multiple organizations can use.
It has been argued that the SCM area lacks sufficient theoretical underpinnings resulting in
simplified conceptualizations of supply chains and their contexts, and furthermore, that theory
may be helpful to uncover some of the complexity characterizing supply chains. A literature
review made in 2008 (Croom et al. 2008) shows a relative lack of theoretical work compared to
empirical based studies.
2.3 Supply Chain Management Practices
Owing to SCM’s interdisciplinary origin, there have been various definitions of SCM (Li et.al;
2006). The SCM concept was derived from the areas of purchasing and Supply Management,
and transportation and Logistics Management (Li et.al 2006, Tan et.al; (2006) stated that SCM
is synonymous with the integration of the supply base that evolved from the traditional
purchasing and materials functions. Others who defined SCM from the Purchasing perspective
include Wisner and Tan (2012) and Reck and Long (2010) and they stated that SCM is a basic
strategic business process rather than a specialized supporting function. From the perspective of
transportation and logistics management however, SCM is synonymous with integrated logistics
systems’ and focuses on inventory reduction both within and across organizations in supply
chain (Lamb, 2010).

Various studies have been conducted to identify these different SCM practices. (Koplin et.al.

2007) determined the underlying dimensions of SCM practices and tested empirically and framework
identifying the relationship among SCM practices, operational performance and SCMrelated
organizational performance for SMEs in Turkey. The set of twelve SCM practices identified were:

7
 close partnership with suppliers; close partnerships with customers. Supply Chain benchmarking; JIT
Supply Procurement, few suppliers; many suppliers; strategic planning; outsourcing; sub-contracting;
holding safety stock and 3PL (Chen and Pawlraj,2014) study on development of SCM practices
identified a set of four reliable and valid practices significant to SCM. Ulusoy (2008) identified four
SCM practices while assessing the supply chain and innovation management in manufacturing
industries of Turkey, They are; logistics, supplier relations, customer relations and production.
Similarly a study conducted by Lee and Kuncade (2013) proposed six major dimensions of SCM:
partnership; information technology; operational flexibility; performance measurement; management
commitment and demand characterization.

Kuei et.al (2011) on the other hand used eleven supply quality-management practices to study
and test manager’s perception on the association between Supply chain quality management
practices and organizational performance. The eleven factors were; Top management leadership,
training; product design, supplier quality management; process management; quality data
reporting, employees’ relationships; customers’ relations, benchmarking; supplier selection; and
supplier participation. They found that perceived improvements in organizational performance
are associated with improvements in supply chain quality management.

Li et.al. (2005) defined SCM practices as the set of activities that organizations undertake to
promote effective Management of the Supply chain, SCM practices are described include
supplier partnership, outsourcing, cycle-time compression, continuous process flow and
information technology (IT) sharing, supply chain practices is a way of reducing duplication
effects by focusing on core competencies, and use interorganisational standard such as activity
based costing or EDI and eliminating un necessary waste along the supply chain.

8
 2.3.1 Green Supply Chain Management Practices

Green Supply Chain Practices are divided into four dimensions, internal environment
management, external environment management, investment recovery and eco-design (Zhu and
Sarkis, 2014) as quoted by Rha, (2009). For an organization to improve its environmental
performance, its internal environment performance is critical (Zhu et.al, 2014) and this can only
be achieved through quality management which ensure adherence to vigorous quality control by
learning from experiences of their quality management programs (Zhu and Surkis, 2014). By
receiving the certificate for the ISO 14001 Environmental Management System (EMS)
Standard, Organizations are able to create structured mechanisms for continuous improvement
to environmental performance (Kitazawa and Srakis, 2009).
Betty Feng, (2009) in the article Reduce Supply Chain Carbon Footprint, highlights the many
trade off decisions to be made in green supply chain management optimization with the goal of
maximizing Carbon emission reduction. She suggested environmental initiatives from supply
chain, functions point of view and divided the functions into five groups’ product development,
procurement, production, distribution and transportation.
Green Supply chain improves operations by employing an environmental solution through triple
a concept. That is, it improves Agility by helping management mitigate risks and speed
innovations, increases Adaptability since it leads to innovative processes and continuous
improvements and also it Promotes Alignment of business and principles. Abrahams (2011)
tested the impact of green supply chain capabilities on performance of oil marketing firms in
Bungoma
.

2.3.2 Long term Relationships/ Partnerships

Collaboration between supply chain partners will reduce risk and great improve the efficiency of
the overall pipeline. Supply chain efficiency therefore relies heavily on successful long-term
relationships (partnerships) where information sharing, joint problem solving, and trust are key
success factors (Hugo, et.al 2014:11). Supplier development and the evaluation of suppliers
performance is an issue of managing the supplier relationship. If the supplier’s performance is

9
 perceived as inadequate, it should be assisted to enhance its performance by means of trainings
and continuous improvement teams (Gadde & Hakansson, 2001: pp 145-152).

2.3.3 Information Technology

Supply Chain Management has emerged quickly throughout the early part of 21 st Century due to
improvement in technology. Technology is increasingly affordable and available to help
organizations to take advantage of supply chain strategies. Because of the competitive pressures
facing business it is critical for them to use supply chain strategies to create synergies with
supply chain partners in order to succeed in the global competitive environment (Chairman
et.al, 2012:34). High level best practice for SCM, technology can apply to any business, even
though the operation may be specific to an organization implementing a specific SCM System,
for example, could be a waste of money if the overall operation is a problem. Automating a
broken process does not fix the process.

2.3.4 Logistics

At the heart of an organization are the operations that create and deliver the products. These
operations take a variety of inputs and convert them into desired outputs. The inputs include raw
materials, components, people, equipment, information, money and other resources. Operations
include manufacturing, serving, transporting, selling, training among others with the outputs
being goods and/or services. Logistics manages the flow of inputs from suppliers, the movement
of materials through different operations within the organization, and the flow of materials out
to customers (Wisner, 2009).
A supply chain management strategy requires an end-to-end supply chain focus that supports
integration of business processes such as purchasing, manufacturing, selling, and logistics
throughout the chain for the purpose of providing optimum value to the ultimate
customer/consumer (Cohen and Roussel, 2005; Wisner, 2009). Implementation of such a
strategy requires that actions be taken to strengthen relationships and develop trust among
supply chain partners to facilitate the integration of processes throughout the supply chain from
suppliers’ supplier to ultimate consumer/consumer (Cohen and Roussel, 2005; Wisner, 2009).

10
 Morash and Clinton (1997) proposed a schema for future supply chain research that included
transportation and logistics capabilities as the link between supply chain structure and
performance. Wisner (2009) hypothesized a positive link between logistics strategy and
organizational performance, he did not report data collection related to logistics strategy
measurement and did not report results related to his hypotheses. Schramm-Klein and Morschett
(2006) assessed the relationship between logistics quality and the organizational performance of
firms in the retail sector.

The logistics construct reflects the organization’s performance as it relates to its ability to
deliver goods and services in the precise quantities and at the precise times required by
customers. Bowersox et al. (2009) incorporate performance metrics such as customer
satisfaction, delivery speed, delivery dependability, and delivery flexibility (Green and Inman,
2005; Green et al., 2006). Financial performance reflects an organization’s profitability and
return on investment as compared to its competition (Green and Inman, 2005).

2.4 Supply Chain Management Practices and Performance

Chong et.al (2011) empirically tested a framework which identified the relationships between
supply chain management practices, operational performance and innovation. Performance of
Malaysian manufacturing and service firms. Data for the study were collected from a sample of
163 Malaysian manufacturing and service firms. The research model was tested using structural
equation modeling. The results showed that SCM practices in both the upstream and
downstream supply chain have a direct and significant impact on organizational performance
among Malaysian firms. The findings also revealed that manufacturing and service firms in
Malaysia did not have a significant difference in their SCM practices. Tracey et.al (2005)
empirically tested the impact of Supply-Chain Management (SCM) capabilities on business
performance so as to determine the degree customer-oriented SCM issues influence competitive
position and organizational performance. Methodology was employed to generate reliable and
valid measurement instrument. Responses from 474 manufacturing managers were then utilized
to test casual model using the results indicated significant positive relationships exit among
three types of SCM capabilities. Awino and Gituro (2009) focused on SCM practices in large

11
 private manufacturing firms in Bungoma . The preliminary tests employed the use of Kaiser
Mayer-
Olkin (KMO) and Bartlett’s Test. A sample of 52 large private manufacturing companies, which
are members of Bungoma Association of Manufacturers (KAM) was used. To establish SCM
practices, 39 variables were used to measure the level of application among those firms. The
variables were analyzed using factor analysis procedure to achieve a simple and meaningful
structure that is, have a nonzero locking of the explained variance for each individual factor. As
a result 11 critical factors were established as the best practices: Operating policies, linkages
within supply chain firms, improved performance, information technology systems strategic
alliances, performance measures, goal orientation, customer and relationships, guidelines and
procedures supplier selection and supplier evaluation. When benchmarked, these practices were
found to be universal and compared with the best practices globally.

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 2.5 Conceptual Framework

The existence of a procurement system in a public procuring entity is interplay of a

variety of variables: legislative and regulatory framework, integrity and transparency,
institutional framework, management capacity, procurement operations and market
practices. It is often concluded that a well-coordinated procurement system offers value
for money and consequently monetary savings.

Independent Variable Dependent Variable

Green SCM Practices

Performance in public research institutions
Long Term
relationships Quality
Information technology services Cost
Supply base reduction
reduction Integrity and ethics

Figure 2. 1: Conceptual Framework

Source: Research

The research conceptualized that the presence of green supply chain practices, long
term relationships, information technology, lean suppliers/supply base reduction,
logistics and outsourcing of non-core services were the main factors that impact on
performance among public research institutions in Bungoma .

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CHAPTER THREE: METHODOLOGY

3.1 Introduction

This chapter presents the research methodology that was applied in conducting the study.
This involved the research design, target population, sampling design and sample size,
data collection procedures and instrument, determination of reliability and validity as
well as data analysis techniques.

3.2 Research Design

A descriptive research was used in this study. According to Donald and Pamela (2006),
descriptive research a descriptive study deals with the what, how and who of a phenomenon
which is the concern for this study. The study specifically tries to ascertain the SCM
practices among research institutions in Bungoma and seeks to show their relationship with
firm performance. The study also sought to find out the challenges faced in the adoption of
SCM practices. Thus descriptive research design is appropriate. Mogire (2011) conducted
research on Supply Chain Practices in big hotels in Bungoma county and Komen (2005)
did a survey of the extent of outsourcing of Human Resource management functions
Services by the Public Service in Bungoma . Both researchers used descriptive analysis to
analyze their research data and it was successful.

3.3 Population

Pout and Hungler (1999) defined a study population as an aggregate or totality of all the
objects, subjects or members that conform to a set of specifications. In the present study,
the population was made up of all publicly funded Bungoma n research institutions
whose core mandate is to conduct policy research. The study targeted 36 respondents
from the public research institutions in Bungoma (See Appendix II for complete list).
Since the population of the study is small, a census was carried out.

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 3.4 Data Collection
The study utilized quantitative data. Quantitative data involves collecting data from a
population or from one or more large samples that represent the population, in a form that
is easily converted to numerical indices (Leedy Ormrod, 2001).The research instrument
was a semi structured questionnaire (appendix II). The questionnaires were administered
through two methods namely; self-administered questionnaires and researcher
administered questionnaires. The questionnaire was divided into various sections
following the research objectives. Section I of the instrument had general information,
Section II sought to answer the research objective I, Section III sought to address research
objective II while section IV sought to address research objective III. Most of the
questions were close-ended to allow easy coding, faster responses and direct research to
relevant and desirable variables hypothesized as possible challenges. Three
questionnaires were distributed to each research institution. These were sent to the supply
chain manager, finance manager and the CEO/deputy CEO.

3.6 Data Analysis

The questionnaires were administered, and the mass of raw data collected was
systematically organized in a manner that facilitated analysis. All data collected was
checked for consistency of responses and cleaned before entry into computer file. The data
was analyzed using statistical methods and the results, displayed using tables, charts and
graphs. Descriptive statistics mainly frequencies, percentages, and mean were used to
summarize the responses. This was used to analyze objective (I) determination of supply
chain management practices among public research institutions and objective (III) the
challenges that public research institutions in Bungoma face while adopting SCM
Practices. The researcher also used multivariate linear regression analysis to address
objective (II) the impact of SCM Practices on performance. Data was analyzed using
Statistical Package for Social Sciences (SPSS) V19.
The regression equation shall be of the form:
P = β0 + β1GSCP + β2LTR + β3IT + β4LS + β5OS β6L

Where: P = Performance; GSCP = Green Supply Chain Practices; LTR = Long Term
Relationships; IT = Information Technology; LS = Lean Suppliers; OS = Outsourcing; and
L = Logistics

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 CHAPTER FOUR: DATA ANALYSIS, INTERPRETATION AND DISCUSSIONS

4.1 Introduction

This chapter presents the data analysis results, interpretations and discussion of findings.
The chapter is organized as follows: First it presents the response rate then the
background information of the respondents. This is followed by analysis of supply chain
practices that have been adopted by the research institutions. The chapter concludes with
an analysis of the relationship between various supply chain management practices and
firm performance using regression analysis.

4.2 Response rate

The study targeted 36 heads of departments/directorates from the publicly funded research
institutions In Bungoma . The response rate was as displayed in the table below.

Table 4.1: Response rate

Targeted Achieved Percentage

Respondents 36 30 83%

Source: Research data (2013)

From the table above, 30 out of the expected 36 respondents returned the questionnaires
representing an 83% response rate. This is a very high response rate and is representative
of the targeted sample. This response rate was favorable according to Mugenda and
Mugenda (2003) in which they assert that a 50% response rate is adequate, 60% good and
above 70% rated very well.
4.3 General information
4.3.1 Nature of institution
The study sought to establish the nature of institution according to funding status. The

responses were as shown in the table below.

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 Table 4.2: Nature of institution

Frequency Percent

Fully publicly funded 20 66.7

Partially publicly funded 10 33.3

Total 30 100.0

Source: Research data (2013)

From the table above, majority (66.7%) of the institutions were fully publicly funded
while 33.3% were partially funded publicly. The implication of these proportions is that
the data collected had private funding element making the findings even more useful
since the profit motive for the partially publicly funded institutions could drive them to
adopt more robust strategies to ensure their sustainability as witnessed among educational
institutions.

4.3.2 Gender
The respondents were asked to indicate their gender. The table below shows the responses.

Table 4.3: Distribution of Respondents by gender

Frequency Percent

Male 23 76.7

Female 7 23.3

Total 30 100.0

From the table above, majority (76.7%) of the respondents were male while only 23.3%

were female. This suggests that most of the procurement managers among public research

17
 institutions are male. This does not however affect the research data since the focus was

on the institutions rather than personal opinions.

4.3.3 Length of service in current position

The study sought to find how long the respondents had served their organizations in their

current positions. The responses were as shown in the table below.

Table 4.4: Distribution of Respondents by length of service

Frequency Percent

1 - 5 years 7 23.3
6 - 10 years 9 30.0

11 - 15 years 7 23.3
Over 16 years 6 20.0

Total 29 96.7

Source: Research data (2013)

From the table above, most respondents (30%) had worked for between 6 and 10 years in

their current positions while 23.3% had served for between 11 and 15 years and 20% had

served for over 16 years. Thus 76.7% of the respondents had well over six years

experience in their present positions meaning they are competent to answer the questions.

4.3.4 Extent of Supply Chain Management Practices Implementation

The study sought to establish the various supply chain management practices that had
been adopted by the various organizations. The respondents were asked to rate their

18
 levels of agreement with various statements on a scale of 1 – 5 where 1 was strongly
disagree and 5 was strongly agree. The summary statistics of the responses are provided
in table 4.5.

Table 4.5: Means of the level of Implementation of Supply chain management practices

Std.
N Minimum Maximum Mean Deviation

Supplier Selection 30 2.00 5.00 3.8667 .93710

Existence SC of LAN and WAN 29 1.00 5.00 3.7586 1.12298
Supplier Evaluation 30 2.00 5.00 3.7333 .98027
Existence of environmental Policy 30 1.00 5.00 3.6333 1.29943
Collaboration with Suppliers on long term 30 2.00 5.00 3.6000 .96847
relationships
Real time delivery 30 1.00 5.00 3.6000 1.06997
Outsourcing of services 30 1.00 5.00 3.6000 .93218
Free Flow of information among members of 30 2.00 5.00 3.5333 1.04166
staff and suppliers

Provision of dependable Services 30 2.00 5.00 3.5000 .82001

Quality outsourced services 30 1.00 5.00 3.5000 .97379
Reduction of fuel consumption 30 1.00 5.00 3.4333 1.27802
Sharing of Information through Information 30 1.00 5.00 3.4000 1.22051
Technology

Reduction of pollutant emissions 30 1.00 5.00 3.4000 1.32873

Prequalification of Suppliers that are aware of 30 2.00 5.00 3.4000 1.03724
Environmental Issues

Formal partnerships with Suppliers 30 1.00 5.00 3.3667 1.29943

Std.
Deviation
N Minimum Maximum Mean
28 1.00
Existence of a SC data base 5.00 3.3214 1.38921
Sharing of Information with Suppliers 30 1.00 5.00 3.2000 1.09545
Operating with Lean supply base 30 1.00 5.00 3.2000 1.12648
Green Supply Chain Management Practices 28 1.00 5.00 3.0714 1.24510
Supplier Development 30 1.00 5.00 3.0000 1.25945
Preparation of specifications with Suppliers 30 1.00 5.00 2.9667 1.35146
Existence of Outsourcing policy 29 1.00 5.00 2.9310 1.41247

19
 Procurement of recyclable Material 30 1.00 5.00 2.7000 1.55696
Reverse logistics 29 1.00 5.00 2.6897 1.19832
Involvement of key suppliers in planning 30 1.00 4.00 2.2667 1.17248
Valid N (listwise) 24

Source: Research data (2013)

From the above, the following SCM practices have been adopted to a great extent (mean
lies between 3.51 and 5) : Supplier Selection (mean, 3.87), Supply Chain LAN and WAN
(mean, 3.76), Supplier Evaluation (mean, 3.73), Environmental Policy (mean, 3.63),
Collaboration with Suppliers on long term relationships (mean, 3.60), Real time delivery
(mean, 3.60), Outsourcing of services (mean, 3.60) and Free Flow of information among
members of staff and suppliers (mean, 3.53).
The following SCM practices have been implemented to a moderate extent (mean lies
between 2.51 and 3.5): Provision of dependable Services (mean, 3.5), Quality outsourced
services (mean, 3.5), Reduction of fuel consumption (mean, 3.4333), Sharing of
Information through Information Technology (mean, 3.4), Reduction of pollutant
emissions (mean, 3.4), Prequalification of Suppliers that are aware of Environmental
Issues (mean, 3.4), Formal partnerships with Suppliers (mean, 3.37), Existence of a SC
data base (mean, 3.32), Sharing of Information with Suppliers (mean, 3.2), Operating
with Lean supply base (mean, 3.2), Green Supply Chain Management Practices (mean,
3.07),
Supplier Development (mean, 3.0), Preparation of specifications with Suppliers
(mean, 2.97), Existence of Outsourcing policy (mean, 2.93), Procurement of recyclable
Material (mean, 2.7) and Reverse logistics (mean, 2.7).

Only Involvement of key suppliers in planning (mean, 2.26) had been implemented to a small
extent.
These findings indicate that while a number of SCM best practices have been adopted
and implemented to a great extent, majority of the practices have been implemented to a
moderate extent. Further, a key practice like involvement of major suppliers in planning
still lacks behind. These findings imply that research institutions still have lots of ground
to cover in terms of fully implementing supply chain best practices.
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 4.4 Impact of Supply Chain Management Practices on Performance
The study sought to examine the relationship between various SCM practices and
performance. The variables which were all measured using a 5-point likert scale included
the following: green supply chain practices, long term supplier relationships, information
technology, lean suppliers, outsourcing and logistics. A multivariate linear regression was
fitted to the data and the results were as shown in the table below.
Table 4.6: Coefficients estimates

Unstandardized Standardized

Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .175 .271 .647 .524
Green Supply Chain Practices .014 .049 .019 .279 .783
Long Term Relationships -.024 .077 -.025 -.309 .760
Information Technology .380 .083 .474 4.586 .000
Lean Suppliers .273 .063 .323 4.319 .000
Outsourcing Services -.069 .063 -.069 -1.090 .287
Logistics .379 .081 .370 4.694 .000

Source: Research data (2013)

The resulting equation was as follows:
P = .175 + .014GSCP - .024LTR + .380IT + .273LS -. 069OS +. 379L
Where: P = Performance; GSCP = Green Supply Chain Practices; LTR = Long
Term Relationships; IT = Information Technology; LS = Lean Suppliers; OS =
Outsourcing; and L = Logistics
From the table above, Green supply chain practices has a weak positive relationship with
performance but the relationship is not statistically significant at the 5% significance
level (β = .014; p = .783 > .05). Long term supplier relationships has a negative
relationship with performance but the relationship is not statistically significant at the 5%
significance level (β = -.024; p = .760 > .05). Information technology however has a
positive relationship with performance which is statistically significant at the 5%
significance level (β = .380; p = .000 <.05). Lean suppliers also has a positive correlation
which is statistically significant at the 5% significance level (β = .273; p = .000 <.05).
21
 Outsourcing was found to have a negative relationship with performance but the
relationship was not statistically significant (p = -.069; p = .287 > .05). Finally, Logistics
was found to have a positive and statistically significant relationship at 5% level of
significance with performance (β = .379; p = .000 < .05).

From the above findings, logistics, lean suppliers and information technology were found
to have positive statistically significant relationships with performance. The other three
variables, namely Green supply chain practices, long term relationships and outsourcing
were found to have weak correlations which were not statistically significant. However
the study findings are consistent with those of Orukoh (2007) where in his study he
established that Numerical Machining Complex had not institutionalized collaborative
long term relationships with suppliers. The study also contradics the findings with those
of Mwirigi (2007) on Green Supply Chain Practices which she established that GSC
practices contributed to environmental challenges to firms.

The table below shows the model summary

Table 4.7: Model summary

Adjusted R Std. Error of the

Square Estimate
Model R R Square
1 .798 .637 .598 .42620

Source: Research data (2013)

From the table above, the coefficient of determination was found to be .637 indicating
that SCM practices account for 63.7% of the variability in performance. This represents a
good fit since the rule of thumb has it that an R-square between 60% and 69% represents
a good model.
The table below shows the ANOVA table from the regression analysis. Table
4.8: ANOVA

Sum of
Squares df
Model Mean Square F Sig.
1 Regression 17.986 6 2.998 16.503 .000

Residual 4.178 23 .182

Total 22.164 29

22
 Source: Research data (2013)
From the table above, the F-statistic was 16.503 with a P-value of 0.000 which is less
than .05. This indicates that the model was statistically significant at the 5% level of
significance implying that SCM practices have a statistically significant relationship with
performance.

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

5.1 Introduction
This chapter presents summary of findings, conclusions and recommendations. It is
organized as follows: first it presents the summary of findings organized as per research
objectives, then the conclusions drawn from those findings and finally both policy
recommendations and suggestions for further study.

5.2 Summary of Findings

The study was guided by three specific objectives namely, to establish the extent of
supply chain management practices among public research institutions in Bungoma ; to
determine the influence of SCM practices on firm performance and to evaluate the
challenges faced by public research institutions in Bungoma while adopting SCM. The
following were the major findings obtained from the data analysis. Regarding SCM
practices, it was found that while a number of SCM best practices had been adopted and
implemented to a great extent, majority of the practices have been implemented to a
moderate extent. It is worth noting that involvement of major suppliers in planning; an
important best practice had been implemented only to a small extent. Thus few best
practices had been fully implemented with majority still lagging behind.
Regarding the relationship between SCM practices and firm performance, three variables
out of the seven, namely logistics, lean suppliers and information technology were found
to have strong statistically significant relationships with performance. The other three
variables, namely Green supply chain practices, Long term supplier relationships and
outsourcing were found to have weak relationships which were not statistically

23
 significant. Finally, various setbacks face the public research institutions in their bid to
implement SCM best practices. These include: low levels of support from top
management, political interference in SCM, inadequate end user cooperation and
understanding on issues relating to procurement, low supplier and end users awareness of
PPDA 2005 and Regulations 2006, and low compliance among suppliers to the
Environmental Management Act and policies.
5.3 Conclusions

From the above findings, the following conclusions were made. First, public research
institutions have adopted some SCM best practices to a great extent and some to a
moderate extent. This leaves a gap in the adoption of SCM practices. The main practices
still yet to be fully implemented include: Provision of dependable Services, Quality
outsourced services, Reduction of fuel consumption, Sharing of Information through
Information Technology, Reduction of pollutant emissions, Prequalification of Suppliers
that are aware of Environmental Issues, Formal partnerships with Suppliers, Setting up a
SC data base, Operating with Lean supply base, Green Supply Chain Management
Practices, Supplier Development, Preparation of specifications with Suppliers,
development of an Outsourcing policy, Procurement of recyclable Material, Reverse
logistics and Involvement of key suppliers in planning.
Secondly, it was concluded that logistics, lean suppliers and information technology have
strong positive relationships with firm performance among the publicly funded research
institutions.
Thirdly, the study concluded that the institutions face a number of challenges in their bid
to implement SCM best practices. These include: low levels of support from top
management, political interference in SCM, inadequate end user cooperation and
understanding on issues relating to procurement, low supplier and end users awareness of
PPDA 2005 and Regulations 2006, and low compliance among suppliers to the
Environmental Management Act and policies.
5.4 Recommendation

From the above conclusions, the following recommendations were arrived at:
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 The research institutions should strengthen their supply chain management by putting
greater effort to the implementation of some key best practices. Specifically, the
following practices should be improved on Provision of dependable Services, Quality
outsourced services, Reduction of fuel consumption, Sharing of Information through
Information Technology, Reduction of pollutant emissions, Prequalification of Suppliers
that are aware of Environmental Issues, Formal partnerships with Suppliers, Setting up a
SC data base, Operating with Lean supply base, Green Supply Chain Management
Practices, Supplier Development, Preparation of specifications with Suppliers,
development of an Outsourcing policy, Procurement of recyclable Material, Reverse
logistics and Involvement of key suppliers in planning.
The research institutions should create awareness forums to educate users on applicable
laws and regulations such as the PPDA. The research institutions should enhance their
technological capacity so as to accommodate greater collaboration and information
sharing between the institution and suppliers as well as internally.
5.5 Limitations of the Study
The researcher had an uphill task to convince the respondents to participate in the study.
Most of the respondents were Senior Managers who are busy and had no time to respond
to the questionnaires. The findings of this study and application thereof are limited to
Public Research Institutions in Bungoma . It is therefore important to note that the
findings can of this study can only be used for comparative purposes.
5.1 Suggestions for further study
Owing to some limitations of this study, the following recommendations for future study
were arrived at.The present study used only publicly funded research institutions, future
studies should consider expanding their scope to include other private research
institutions. The present study did not use quantitative measures of firm performance. It
would be interesting to see whether similar results can be obtained using quantitative
measures such as profitability.

25
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