Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya

Owuor Joel Onyango; Muma Benard Onyango; Sophia Nduta Kiruri; Susan Njeri Karanja

doi:doi:10.11648/j.ijefm.20150302.16

| Peer-Reviewed

Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya

Owuor Joel Onyango, Muma Benard Onyango, Sophia Nduta Kiruri, Susan Njeri Karanja

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 2)

Received: 23 February 2015 Accepted: 10 March 2015 Published: 15 March 2015

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

It is the aim of every organization to achieve sustainability and operational excellence. For these reasons, organizations adopt various strategies. To achieve operational excellence, every functional area of the organization must be have roles to play. Supply chain operations are in particular key in enhancing operational performance. The aim of this study was to determine the effect Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms. The study focused on business-supplier communication and business-supplier joint decision making. The study was grounded on three objectives; to establish the effect of buyer supplier communication on operational performance of manufacturing firms, to evaluate the influence of buyer supplier joint decisions on operational performance of manufacturing firms and to investigate the overall effect of strategic supplier relationship management on internal operational performance of manufacturing firms. This was a correlational study and both descriptive and inferential analyses were conducted. The individual parameters were analyzed using descriptive statistics (frequencies, mean, standard deviation and variance) while regression analyses was conducted to test the effect of strategic supplier relationship management on internal operational performance. The study revealed that business-supplier communication and business-supplier joint decision making both individually and jointly have positive effect on internal operational performance. This study therefore recommends that management of manufacturing firms and other organizations adopt and implement strategic supplier relationship management as one of the management strategies. In addition, the study suggests that further studies are conducted to relate other aspects of strategic supplier relationship and organizational performance such as financial, environmental and social performance.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 2)
DOI	10.11648/j.ijefm.20150302.16
Page(s)	115-124
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Strategic Supplier Relationship Management, Internal Operational Performance, East African Breweries Limited

References

[1]	Adams, J., Khoja, F., & Kauffman, R. (2012). An empirical study of buyer–supplier relationships within small business organizations. Journal of Small Business Management, 50(1), 20-40.
[2]	Appelfeller, W., & Buchholz, W. (2005). Supplier relationship management. Strategie, Organisation und IT des modernen Beschaffungsmanagements, 2.
[3]	Berkowitz, D., et al (2004). Performance Based Logistics. Center for the Management of Science and Technology, Huntsville, AL.
[4]	Boran, F., et al (2009). A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), 11363-11368.
[5]	Burgess, K., Singh, P., & Koroglu, R. (2006). Supply chain management: a structured literature review and implications for future research. International Journal of Operations & Production Management, 26(7), 703-729.
[6]	Casciaro, T. and Piskorski, M.. (2005). "Power Imbalance, Mutual Dependence, and Constraint Absorption: A Closer Look at Resource Dependence Theory." Administrative Science Quarterly 50(2): 167-199.
[7]	Choi, T.,., and Hartley, J., (1996), “An Exploration of Supplier Selection Practices across the Supply Chain”, Journal of Operations Management, 14(4): 333-343.
[8]	Cigolini, R., et al, (2004). A new framework for supply chain management: conceptual model and empirical test. International Journal of Operations & Production Management, 24(1), 7-41.
[9]	Cooper, D. & Schindler, P. (2000). Business Research Methods (8th Ed) McGraw-Hill: New York.
[10]	Cortis, A., & Berkowitz, B. (2005). Computing “anomalous” contaminant transport in porous media: The CTRW MATLAB toolbox. Groundwater, 43(6), 947-950.
[11]	Cousins, P., & Spekman, R. (2003). Strategic supply and the management of inter-and intra-organisational relationships. Journal of Purchasing and Supply Management, 9(1), 19-29.
[12]	Degraeve, Z., Labro, E., & Roodhooft, F. (2000). An evaluation of vendor selection models from a total cost of ownership perspective. European Journal of Operational Research, 125(1), 34-58.
[13]	Dyer, J., (1997), “Effective Inter-firm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value”, Strategic Management Journal, 18(7): 535-556.
[14]	Ellram, L., and Carr, A., (1994), “Strategic Purchasing: A History and Review of the Literature”, International Journal of Purchasing and Materials Management, 30(2): 10-19 European Journal of Operational Research, 43(2): 119-135.
[15]	Emerson, R.. (1962). Power-dependence relations. American sociological review, 31-41.
[16]	Field A. (2005) Discovering Statistics using SPSS 2nd Edition, London: Sage
[17]	Frohlich, M. & Dixon, J. (2002). "A Taxonomy of Manufacturing Strategies Revisited." Journal of Operations Management 19(5): 541-558
[18]	Ghosh, M. and John, G. (1999). "Governance Value Analysis and Marketing Strategy." Journal of Marketing 63(4): 131-145.
[19]	Ghosh, M. & John, G. (2005). "Strategic Fit in Industrial Alliances: An Empirical Test of Governance Value Analysis." Journal of Marketing Research 42(3): 346-357.
[20]	Harland, C., & Knight, Cousins (2004).‘Supply Chain Relationships’. Supply Chains, Concepts, Critiques and Futures, 209-227.
[21]	Hartman, A., Sifonis, J., (2000), De Netgerichte Organisatie, Academic Service, Schoonhoven.
[22]	Heide J., & Stump R., (1994), Performance Implications of Buyer-Supplier Relationships in Industrial Markets, Journal of Business Research, 32 (57-66)..
[23]	Humphreys P., Li W., Chan L., (2004), The impact of supplier development on buyer-supplier performance, The International Journal of Mangement Science, 32 (131-143).
[24]	Ian S. & McCutcheon, D. (2000). The manager's guide to supply chain management. Business Horizons, 43(2), 35-44.
[25]	Johnston, D., et al, (2004). "Effects of Supplier Trust on Performance of Cooperative Supplier Relationships." Journal of Operations Management 22(1): 23-38.
[26]	Kasomo, D. (2007), Research Methods in Humanities and Education, Eldoret; Zapf Chancery.
[27]	Koh, S., et al (2006). The impact of supply chain management practices on performance of SMEs. Industrial Management & Data Systems, 107(1), 103-124.
[28]	Kothari, C., (2004), Research Methodology- Methods and Techniques, New Delhi, Wiley Eastern Limited.
[29]	Krause, D., (1999), “The Antecedents of Buying Firms” Efforts to improve Suppliers”, Journal of Operations Management, 17(2): 205-224.
[30]	Laudon, K. C., & Traver, C. (2007). E-commerce. Pearson/Addison Wesley.
[31]	Lawer, C., & Knox, S. (2004). Reverse marketing, consumer value networks and the new brand intermediaries. In Evolution of Supply Chain Management (pp. 203-225). Springer US.
[32]	Mugenda, O. & Mugenda, A. (2003). Reaserch Methods; Quantitative and Qualitative. Nairobi: Oxford University Press.
[33]	Narasimhan, R., & Das, A., (1999a), “An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance”, Decision Sciences, 30(3): 683-718. Quarterly, March: 27-37.
[34]	Narayandas, D. & Rangan, V. (2004). "Building and Sustaining Buyer-Seller Relationships in Mature Industrial Markets." Journal of Marketing 68(3): 63-77.
[35]	Prahinski, C., & Benton, W. (2004). Supplier evaluations: communication strategies to improve supplier performance. Journal of operations management, 22(1), 39-62.
[36]	Sanders, N. (2005). IT alignment in supply chain relationships: A study of supplier benefits. Journal of Supply Chain Management, 41(2), 4-13.
[37]	Sousa, R. (2003). "Linking Quality Management to Manufacturing Strategy: An Empirical Investigation of Customer Focus Practices." Journal of Operations Management 21(1): 1-18.
[38]	Srinivasan, M., Mukherjee, D., & Gaur, A. (2011). Buyer–supplier partnership quality and supply chain performance: Moderating role of risks, and environmental uncertainty. European Management Journal, 29(4), 260-271.
[39]	Szwejczewski, M., Lemke, F., & Goffin, K. (2005). Manufacturer-supplier relationships: An empirical study of German manufacturing companies. International Journal of Operations & Production Management, 25(9), 875-897.
[40]	Van T., & Donk, D. (2004). A critical review of survey-based research in supply chain integration. International Journal of Production Economics, 111(1), 42-55.
[41]	Wathne, K. & Heide, J. (2004). "Relationship Governance in a Supply Chain Network." Journal of Marketing 68(1): 73-89.
[42]	Weele, A., Rozemeijer, F., & Rietveld, G., (2000), “Professionalizing Purchasing Organiztions: Towards a Purchasing Development Model”, Avialable at http://www.nyenrode.nl/int/2000, January, 21].
[43]	Williamson, E., (1989), “Transaction Cost Economics”, Handbook of Industrial Organization, Ed, by R. Schmalensee and R. D. Willig, Volume I, Elsevier, New York, NY.
[44]	Williamson, E. (1996). The Mechanisms of Governance. New York, Oxford University Press.
[45]	Yin, R. (2003). Case Study Research: Design and Methods (3rd Ed.). Thousand Oaks, CA: Sage Publications Ltd.
[46]	Zaheer, A., Gulati, R., & Nohria, N. (2000). Strategic networks. Strategic management journal, 21(3), 203.

Cite This Article

Plain Text BibTeX RIS

APA Style

Owuor Joel Onyango, Muma Benard Onyango, Sophia Nduta Kiruri, Susan Njeri Karanja. (2015). Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. International Journal of Economics, Finance and Management Sciences, 3(2), 115-124. https://doi.org/10.11648/j.ijefm.20150302.16

Copy | Download

ACS Style

Owuor Joel Onyango; Muma Benard Onyango; Sophia Nduta Kiruri; Susan Njeri Karanja. Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. Int. J. Econ. Finance Manag. Sci. 2015, 3(2), 115-124. doi: 10.11648/j.ijefm.20150302.16

Copy | Download

AMA Style

Owuor Joel Onyango, Muma Benard Onyango, Sophia Nduta Kiruri, Susan Njeri Karanja. Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. Int J Econ Finance Manag Sci. 2015;3(2):115-124. doi: 10.11648/j.ijefm.20150302.16

Copy | Download

@article{10.11648/j.ijefm.20150302.16,
  author = {Owuor Joel Onyango and Muma Benard Onyango and Sophia Nduta Kiruri and Susan Njeri Karanja},
  title = {Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {2},
  pages = {115-124},
  doi = {10.11648/j.ijefm.20150302.16},
  url = {https://doi.org/10.11648/j.ijefm.20150302.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150302.16},
  abstract = {It is the aim of every organization to achieve sustainability and operational excellence. For these reasons, organizations adopt various strategies. To achieve operational excellence, every functional area of the organization must be have roles to play. Supply chain operations are in particular key in enhancing operational performance. The aim of this study was to determine the effect Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms. The study focused on business-supplier communication and business-supplier joint decision making. The study was grounded on three objectives; to establish the effect of buyer supplier communication on operational performance of manufacturing firms, to evaluate the influence of buyer supplier joint decisions on operational performance of manufacturing firms and to investigate the overall effect of strategic supplier relationship management on internal operational performance of manufacturing firms. This was a correlational study and both descriptive and inferential analyses were conducted. The individual parameters were analyzed using descriptive statistics (frequencies, mean, standard deviation and variance) while regression analyses was conducted to test the effect of strategic supplier relationship management on internal operational performance. The study revealed that business-supplier communication and business-supplier joint decision making both individually and jointly have positive effect on internal operational performance. This study therefore recommends that management of manufacturing firms and other organizations adopt and implement strategic supplier relationship management as one of the management strategies. In addition, the study suggests that further studies are conducted to relate other aspects of strategic supplier relationship and organizational performance such as financial, environmental and social performance.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya
AU  - Owuor Joel Onyango
AU  - Muma Benard Onyango
AU  - Sophia Nduta Kiruri
AU  - Susan Njeri Karanja
Y1  - 2015/03/15
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150302.16
DO  - 10.11648/j.ijefm.20150302.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 115
EP  - 124
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20150302.16
AB  - It is the aim of every organization to achieve sustainability and operational excellence. For these reasons, organizations adopt various strategies. To achieve operational excellence, every functional area of the organization must be have roles to play. Supply chain operations are in particular key in enhancing operational performance. The aim of this study was to determine the effect Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms. The study focused on business-supplier communication and business-supplier joint decision making. The study was grounded on three objectives; to establish the effect of buyer supplier communication on operational performance of manufacturing firms, to evaluate the influence of buyer supplier joint decisions on operational performance of manufacturing firms and to investigate the overall effect of strategic supplier relationship management on internal operational performance of manufacturing firms. This was a correlational study and both descriptive and inferential analyses were conducted. The individual parameters were analyzed using descriptive statistics (frequencies, mean, standard deviation and variance) while regression analyses was conducted to test the effect of strategic supplier relationship management on internal operational performance. The study revealed that business-supplier communication and business-supplier joint decision making both individually and jointly have positive effect on internal operational performance. This study therefore recommends that management of manufacturing firms and other organizations adopt and implement strategic supplier relationship management as one of the management strategies. In addition, the study suggests that further studies are conducted to relate other aspects of strategic supplier relationship and organizational performance such as financial, environmental and social performance.
VL  - 3
IS  - 2
ER  -

Copy | Download

Author Information

Owuor Joel Onyango

Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
Muma Benard Onyango

Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
Sophia Nduta Kiruri

Department of Accounting, Finance and Management Science, Egerton University, Nakuru, Kenya
Susan Njeri Karanja

College of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Nakuru, Kenya

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Owuor Joel Onyango, Muma Benard Onyango, Sophia Nduta Kiruri, Susan Njeri Karanja. (2015). Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. International Journal of Economics, Finance and Management Sciences, 3(2), 115-124. https://doi.org/10.11648/j.ijefm.20150302.16

Copy | Download

ACS Style

Owuor Joel Onyango; Muma Benard Onyango; Sophia Nduta Kiruri; Susan Njeri Karanja. Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. Int. J. Econ. Finance Manag. Sci. 2015, 3(2), 115-124. doi: 10.11648/j.ijefm.20150302.16

Copy | Download

AMA Style

Owuor Joel Onyango, Muma Benard Onyango, Sophia Nduta Kiruri, Susan Njeri Karanja. Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya. Int J Econ Finance Manag Sci. 2015;3(2):115-124. doi: 10.11648/j.ijefm.20150302.16

Copy | Download

@article{10.11648/j.ijefm.20150302.16,
  author = {Owuor Joel Onyango and Muma Benard Onyango and Sophia Nduta Kiruri and Susan Njeri Karanja},
  title = {Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {2},
  pages = {115-124},
  doi = {10.11648/j.ijefm.20150302.16},
  url = {https://doi.org/10.11648/j.ijefm.20150302.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150302.16},
  abstract = {It is the aim of every organization to achieve sustainability and operational excellence. For these reasons, organizations adopt various strategies. To achieve operational excellence, every functional area of the organization must be have roles to play. Supply chain operations are in particular key in enhancing operational performance. The aim of this study was to determine the effect Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms. The study focused on business-supplier communication and business-supplier joint decision making. The study was grounded on three objectives; to establish the effect of buyer supplier communication on operational performance of manufacturing firms, to evaluate the influence of buyer supplier joint decisions on operational performance of manufacturing firms and to investigate the overall effect of strategic supplier relationship management on internal operational performance of manufacturing firms. This was a correlational study and both descriptive and inferential analyses were conducted. The individual parameters were analyzed using descriptive statistics (frequencies, mean, standard deviation and variance) while regression analyses was conducted to test the effect of strategic supplier relationship management on internal operational performance. The study revealed that business-supplier communication and business-supplier joint decision making both individually and jointly have positive effect on internal operational performance. This study therefore recommends that management of manufacturing firms and other organizations adopt and implement strategic supplier relationship management as one of the management strategies. In addition, the study suggests that further studies are conducted to relate other aspects of strategic supplier relationship and organizational performance such as financial, environmental and social performance.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Effect of Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms: A Case of East African Breweries Limited, Kenya
AU  - Owuor Joel Onyango
AU  - Muma Benard Onyango
AU  - Sophia Nduta Kiruri
AU  - Susan Njeri Karanja
Y1  - 2015/03/15
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150302.16
DO  - 10.11648/j.ijefm.20150302.16
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 115
EP  - 124
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20150302.16
AB  - It is the aim of every organization to achieve sustainability and operational excellence. For these reasons, organizations adopt various strategies. To achieve operational excellence, every functional area of the organization must be have roles to play. Supply chain operations are in particular key in enhancing operational performance. The aim of this study was to determine the effect Strategic Supplier Relationship Management on Internal Operational Performance of Manufacturing Firms. The study focused on business-supplier communication and business-supplier joint decision making. The study was grounded on three objectives; to establish the effect of buyer supplier communication on operational performance of manufacturing firms, to evaluate the influence of buyer supplier joint decisions on operational performance of manufacturing firms and to investigate the overall effect of strategic supplier relationship management on internal operational performance of manufacturing firms. This was a correlational study and both descriptive and inferential analyses were conducted. The individual parameters were analyzed using descriptive statistics (frequencies, mean, standard deviation and variance) while regression analyses was conducted to test the effect of strategic supplier relationship management on internal operational performance. The study revealed that business-supplier communication and business-supplier joint decision making both individually and jointly have positive effect on internal operational performance. This study therefore recommends that management of manufacturing firms and other organizations adopt and implement strategic supplier relationship management as one of the management strategies. In addition, the study suggests that further studies are conducted to relate other aspects of strategic supplier relationship and organizational performance such as financial, environmental and social performance.
VL  - 3
IS  - 2
ER  -

Copy | Download