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 risk￾monitoring 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.