Thesis 2025 MUT Institutional Repository
SUPPLY CHAIN RESILIENCE PRACTICES, AGILE ORGANIZATIONAL CULTURE AND OPERATIONAL PERFORMANCE OF MANUFACTURING FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
This study focused on examining supply chain resilience and its effect on the
operational performance of manufacturing firms in Nairobi City County, Kenya. In
light of the increasing trend of supply chain disruptions resulting in operational halts
and financial losses, there is a pressing need to understand how supply chain
resilience can mitigate these challenges and enhance firm performance. The general
objective of the study was to investigate supply chain resilience and the operational
performance of manufacturing firms in Nairobi City County. Specifically, the study
assessed the effect of four independent supply chain resilience variables supply chain
collaboration, supply chain risk management, supply chain resistance, and supply
chain reengineering and one moderating variable, agile organizational culture, on the
dependent variable of operational performance. The study was underpinned by four
theoretical frameworks: Stakeholder Theory, Dynamic Capability Theory, Systems
Theory, and Normal Accidents/High Reliability Theory. A descriptive research
design was employed. The sample consisted of 240 manufacturing firms selected
from a population of 600 using purposive, stratified, and proportionate random
sampling. Data was collected primarily through a questionnaire comprising both
closed-ended and open-ended questions. Quantitative data was analyzed using the
Statistical Package for Social Sciences (SPSS), where descriptive statistics were used
to summarize findings, and inferential statistics including Pearson correlation
coefficient were applied to examine relationships among variables. Graphs and
tables were used to present the data. The study revealed a strong consensus on the
critical role of agility, collaboration, and risk management in sustaining operations.
Over 70% of respondents rated both supply chain agility and collaborative practices
as highly effective in supporting continuity and adaptability, while more than 65%
reported notable improvements in operational performance following the adoption of
resilience strategies. Moreover, there was widespread agreement that fostering an
agile organizational culture significantly enhanced firms’ capacity to respond to
disruptions and uncertainty. Qualitative feedback reinforced these findings. For
instance, one respondent stated, ―Being able to shift quickly when a supplier delays
is what keeps our operations running,‖ illustrating the importance of agility. Another
shared, ―COVID taught us not to rely on one route or supplier we now map out risks
ahead of time,‖ underscoring the value of risk awareness. Early-stage supplier
engagement also emerged as a key factor, with one respondent noting, ―When we
engage suppliers early, they deliver better and flag potential issues in advance.‖
Inferential statistical analysis indicated that supply chain collaboration, risk
management, and agility each exert a positive and statistically significant influence
on operational performance. Additionally, agile organizational culture was found to
significantly moderate the relationship between supply chain resilience practices and
operational performance, amplifying the overall impact of resilience strategies. At
the operational level, the study recommends that firms invest in real-time data
analytics, build trust-based supplier relationships, and implement proactive riskmonitoring systems. Internally, firms should foster agility through cross-functional
collaboration and decentralized decision-making. At the policy level, the Kenya
Association of Manufacturers (KAM) and relevant regulatory bodies should
formulate sector-specific supply chain resilience frameworks and support training
initiatives aimed at embedding agile and collaborative practices within the
manufacturing sector to ensure sustained competitiveness.
