Consumer-Driven Supply Chains Agility Practices and Performance of Steel Manufacturing Firms in Keny

Abstract

The performance of steel manufacturing firms in Kenya has been constrained by persistent supply chain inefficiencies, including long lead times, high inventory costs, stockouts, and weak responsiveness to fluctuating customer demand. This study examined the influence of consumer￾driven supply chain agility practices on the performance of steel manufacturing firms in Kenya. Grounded in Dynamic Capabilities Theory, the study adopted a pragmatism philosophy and employed a descriptive and correlational research design. Data were collected from 163 respondents drawn from steel manufacturing firms using stratified random sampling and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. The findings revealed a positive and statistically significant relationship between consumer-driven supply chain agility practices and firm performance (r = 0.612, p < 0.05). Regression results further indicated that consumer-driven supply chain agility practices significantly predict firm performance (β = 0.688, p < 0.05), explaining 64.3% of the variation in performance outcomes (R² = 0.643). The model was also statistically significant (F = 312.568, p < 0.05), confirming the robustness of the relationship. The study established that customer integration, demand sensing, data analytics, and responsive logistics enhance operational efficiency, reduce lead times, and improve customer satisfaction. The study concludes that consumer-driven supply chain agility is a key determinant of performance in Kenya’s steel manufacturing sector. The study further recommends increased investment in digital supply chain systems, enhanced cross-functional coordination, and strengthened demand-driven planning to improve responsiveness and competitiveness.