VALUE CHAIN MAPPING ON PERFORMANCE OF FOOD AND BEVERAGE MANUFACTURING FIRMS IN KENYA
Abstract
Firms with sustainable high performance are those that can develop and deliver more value to their clients while maintaining lower operational costs. While increasing innovation is critical to attaining sustainable and unique firm performance because it increases a firm’s ability and capacity to overcome the challenges in the operating environments, businesses also have to increase their understanding of their business system. However, there was little research on the effects of value chain mapping on firm performance and vice versa despite their apparent interconnectedness. As such, this study aimed to delve into this relationship. Thus, the main objective of the study was moderating effect of supplier capability on relationship between value chain mapping and performance of food and beverage manufacturing firms in Kenya. This study adopted descriptive survey design to explain and follow positivism approach. The population for the study constituted five hundred and forty-four respondents (544) derived from four departments (procurement department, inventory department, sale management and finance department) from 68 food and beverage manufacturing firms in Kenya. This study collected mainly primary data using a structured questionnaire. Simple random sampling technique was used to obtain 227 respondents from the food and beverage manufacturing firms in Kenya for the study. Cronbach alpha was used to test reliability of research instruments. Explanatory factor analysis was used to test construct validity. Data was analysed using both descriptive and inferential statistics with the aid of SPSS version 25. Hypotheses was tested using multiple regression model and hierarchical regression model at .05 level of significance. The findings showed that value chain mapping 3.737 have a positive moderating effect on the relationship between of value chain mapping on performance of food and beverage manufacturing firms in Kenya. Based on the findings, the study concluded value chain mapping positively and significantly influences performance of food and beverage manufacturing firms in Kenya. The study also concludes that there is significant moderating effect of supplier capability on relationship between value chain mapping and performance of food and beverage manufacturing firms in Kenya. From the findings, the study recommends that the management of food and beverage manufacturing firms in Kenya should give priority to value chain mapping.
Key Words: Supplier Capability, Value Chain Mapping, Performance, Food and Beverage Manufacturing Firms
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