Supply chains as one of the governance aspect are complex systems with different structures and power proportions between partners. Managers would be in a better position to meet the challenges of global supply chain processes if they understand the implementation issues and their roles on supply chain effectiveness. The main purpose of the study is to investigate the effect of supply chain management competencies on organizational performance and specifically the effect of innovation Orientation on organizational performance. Explanatory research design was used. The population of study comprised 244 employees from selected Parastatals in Nairobi City County. Questionnaires were used to collect data and data was analyzed using descriptive statistics like means, frequencies, and percentages, and inferential statistics, Pearson correlation and multiple regressions. Results indicated that innovation orientation has significant and positive effect on organizational performance. This concludes that firms whose managers have innovation orientation improve performance. It is recommended that there should be further research and development on innovative and leading organizational practices in order to enhance performance and need for supply chain management policies and procedures that follow an appropriate sequence and structure.