Comparative Study of External Supply Chain Risks on Operational Performance of Motor Vehicle Body Building Firms in Nakuru County, Kenya
International Journal of Economics, Finance and Management Sciences
Volume 3, Issue 5, October 2015, Pages: 566-576
Received: Oct. 19, 2015;
Accepted: Oct. 26, 2015;
Published: Nov. 3, 2015
Views 4241 Downloads 142
Annmarie Kuria, Department of Entrepreneurship, Leadership and Management, Jomo Kenyatta University of Agriculture and Technology, Juja, Kenya
Dr. Josphat Kwasira, Department of Entrepreneurship, Leadership and Management, Jomo Kenyatta University of Agriculture and Technology, Juja, Kenya
Eunice Waruguru, Department of Entrepreneurship, Leadership and Management, Jomo Kenyatta University of Agriculture and Technology, Juja, Kenya
This study compared the effect of external supply chain risks on operational performance of Associated Motors and Truck World Company. The study was guided by three specific objectives; to compare the effect of up-stream market risks on operational performance between Associated Motors and Truck World Company, to compare the effect of external end-to-end risks on operational performance between Associated Motors and Truck World Company and to compare the effect of demand risks on operational performance between Associated Motors and Truck World Company. The population of this study was the employees working in the Procurement Department, Production Department, Finance Department and Marketing Department of Associated Motors and Truck World Company. Primary data was collected from the two motor vehicle body building firms through structured questionnaires. The data collected was coded and analyzed through SPSS version 21. Frequency, means and standard deviation were used describe the independent and dependent variables while correlation and regression analysis with t-test were used to compare the effect of external supply chain risks on operational performance in the two firms. The results revealed that external supply chain risks do not have significant effect on operational performance Associated Motors and Truck World Company. The researcher recommended that the management of motor vehicle body building firms enhance internal systems so as to buffer the organizations from external supply chain risks.
Dr. Josphat Kwasira,
Comparative Study of External Supply Chain Risks on Operational Performance of Motor Vehicle Body Building Firms in Nakuru County, Kenya, International Journal of Economics, Finance and Management Sciences.
Vol. 3, No. 5,
2015, pp. 566-576.
Acenture, L. A. (2012). The New Game of Supply Chain Risk Management Pursuing high performance in uncertain times. Acenture.
Alankar, A. B. (2013). The Cost of Constraints: Risk Management, Agency Theory and Asset Prices. Stanford University Graduate School of Business Research Paper No. 2135; 13-5.
Associated Motors. (2015). Retrieved October 10, 2015, from About Us: http://www.associated-motors.com/.
Assurance, D. B. (2014). Supply Chain Risk Management. DNVGL Business Assurance. Linkoping University Electronic Press.
Best Practice Network. (2006). E-Sourcing: A Buy IT E-Procurement Best Practice Guideline. Special Issue 2006, 1-23.
Best Practice Network. (2004). E-Sourcing: A BuyIT e-Procurement Best Practice Guideline. Bristol: Best Practice Network.
Bosman, R. (2006). The New Supply Chain Challenge: Risk Management in a Global Economy. USA: FM Global.
Braunscheidela, M. J. (2009). The organizational antecedents of a firm’s supply chain agility for risk mitigation and response. Journal of Operations Management, 27 (2), 119-140.
Chopra, S. A., Sodhi, M. S. (2014). Managing the Cost of Risk Reduction in the Supply Chain. The European Financial review. Procurement & Supply Chain, Risk Intelligence, UK.vol 12(2), 68-70.
Department of Transport UK. (2003). Creating Resilient Supply Chains: Practical Guide. Centre for Logistics and Supply Chain Management, Cranfield, Bedford. United Kingdom Mk43 0AL.
Dittmann, P. (2014). Managing Risk in the Global Supply Chain. Corporate Partnerships, Knoxville, University of Tennessee, United Kingdom.
DNVGL. (2015, January 2). Supply Chain Risk Management Sustainable performance is not only about what you do. You are also judged on the actions of your suppliers. . Retrieved October 6th, 2015, from DNVGL: https://www.dnvgl.com/services/supply-chain-risk-management--5108.
Giunipero, L. (2000). World-class Purchasing Skills: An Empirical An Investigation. Journal of Supply Chain Management, 36 (4) 4-13.
Larson, P. a. (1998). Single Sourcing and Supplier Certification: Performance and Relationship Implications. Industrial Marketing Management, 27 (1), 73-81. New Delhi, Wiley Eastern Limited.
Lee, H. P. (1997). Information Distortion in a Supply Chain: The Bullwhip Effect. Management Science, 43 (4), 546-580.
MacKinnon, M. (2002). The Security Team: These Online Services Back Up B2B Security, International Journal of Physical Distribution & Logistics Management, 34 (9), 608-714.
Manuj, I. (2008). Global supply chain risk management strategies. International Journal of Physical Distribution & Logistics Management, 38 (3), 192 223.
Norrman, A. (2004). Ericsson's proactive supply chain risk management approach after a serious sub‐supplier accident. International Journal of Physical. Distribution & Logistics Management, 34 (5), 434-456.
Nurmaya, S. (2012). Supply Chain Risk Management: Identification, Evaluation and Mitigation Techniques. Linköping Studies in Science and Technology, Dissertations, No. 1459.
Okonjo, E. (2014). Procurement Risk Management Practices and Supply Chain Performance of Mobile Phone Service Providers in Kenya. Nairobi, University of Nairobi Press.
Simon, K. M. (2011). Correlational Research: Dissertation and Scholarly Research: Recipes for Success. Seattle, WA: Dissertation Success LLC, 40 (1), 69-72.
Singh, K. (1998). The Impact of Technological Complexity and Inter Firm Cooperation on Business Surviva. Academy of Management Journal, 40, (2), 339-69.
Smeltzer, L. (1998). Proactive Supply Management: The Management of Risk. International Journal of Purchasing and Materials Management, 34 (1), 38-45.
Snow, J. (2013). Procurement Performance Indicators Guide Using Procurement Performance Indicators to Strengthen the Procurement Process for Public Health ommodities. U.S., Agency for International Development, 34(3), 156-168.
Spiers, D. (2010). Effective Operations Performance Management: Strategic Framework for Success.United States of America, Westin Press.
Stading, G. A. (2000). University of Houston-Downtown 92nd Annual International Supply Management Conference, May 2007.
The Vehicle Builders & Repairers Association. (2015, August 5). Support services to the Motor Industry. Nairobi, centre graphic services.
Thun J. and Hoenig, D. (2011). An Empirical Analysis of Supply Chain Risk Management in the German Automotive Industry. International Journal of Production Economics, 131 (1), 242-249.
Tomas, R. N. (2013). Linking External Integration to Supply Chain Risk Reduction and Performance Outcomes: An Empirical Study 22, (2), 223-234.
Tsikriktsis, N. (2007). The Effect of Operational Performance and Focus on Profitability: A Longitudinal Study of the U.S. Airline Industry. Manufacturing & Service Operations Management, 9 (4), 506-517.
Truck World. (2015). Truck World. Retrieved October 11, 2015, from About Us: http://www.truckworld.co.za/
USAID. (2013). Procurement Performance Indicators Guide: Using Procurement Performance Indicators to Strengthen the Procurement Process for Public Health Commodities. Kansas city, USAID.
Zsidisin, G. (2013). Managerial Perceptions of Supply Risk. Journal of Supply Chain Management, 39 (1), 14-25.
Zsidisin, G. P. (2001). Purchasing Organization Involvement in Risk Assessments, Contingency Plans, and Risk Management: An Exploratory Study. Supply Chain Management, 5 (4) 187 - 202.