Strategic Supply Chain Practices and Performance of Maize Milling Companies in Nairobi City County, Kenya

Abstract

Purpose: The study analyzed how strategic supply chain practices affect maize milling companies' performance in Nairobi City County, Kenya. In particular, the study focused on how strategic supplier relationship management, supply chain integration, strategic inventory management, and logistics distribution strategy affect organizational performance. Methodology:  The method used was quantitative, descriptive, and cross-sectional correlational research within a positivist paradigm. A total of 140 respondents were selected from ten large-scale maize milling companies within five functional departments, determined by proportionate stratified sampling from the directory of the Kenya Association of Manufacturers (KAM). A structured Likert-scale questionnaire with 53 items was used to collect primary data. Descriptive statistics were computed, and multiple linear regression analysis was conducted using SPSS Version 26. All test statistics required for the suitability of the data for regression analysis were calculated: normality, multicollinearity, homoscedasticity, and autocorrelation. Findings:  All four strategic supply chain practices were positively and significantly related to performance, with the four variables jointly accounting for 65.9% of the observed variation in the composite performance score (R² = 0.659, F(4, 131) = 63.328, p < 0.001). Supply chain integration was the strongest predictor (β = 0.311; p < 0.001), followed by strategic supplier relationship management (β = 0.272; p = 0.001), logistics distribution strategy (β = 0.270; p < 0.001), and strategic inventory management (β = 0.214; p = 0.003). The study found that coordinated strategic supply chain practices play a significant role in the organizational performance of maize milling companies in Nairobi City County. Unique Contribution to Theory Practice and Policy:  It recommended improved supply chain integration, supplier relationship management, logistics distribution systems, and strategic inventory management to enhance performance and competitiveness in the maize milling industry.