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Moderating Effect of Environmental Uncertainties on the Relationship between Risk Hedging Supply Chain Strategy and Performance of Manufacturing Firms in Kenya

Author

Listed:
  • Karani Anthony Muriithi

    (Department of Procurement of Procurement and Logistics, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology)

  • Odari Sammy

    (Department of Procurement of Procurement and Logistics, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology)

  • Noor Shalle

    (Department of Procurement of Procurement and Logistics, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology)

Abstract

The manufacturing sector in Kenya is faced by the challenges of performance and unstructured supply chain strategy. Further, the manufacturing sector growth in 2014 was 3.4% compared to a 5.6% growth in 2013 (Waiguru, 2015). This slow growth in manufacturing sector performance can be attributed to several environmental uncertainties such as the general election, high production costs, supply disruptions, political stability, unavailability of raw materials or demand fluctuations, technological changes, employees’ strikes, financial risk, terrorism and competition from imported goods (KNBS, 2018).The purpose of the study was to determine the moderating effect of environmental uncertainties on the relationship between risk hedging supply chain strategy and performance of manufacturing firms in Kenya. The study utilized descriptive research design. The target population was 829 managers from manufacturing firms around the country. A sample of 270 managers was selected using stratified random sampling. Results indicated that risk hedging supply chain strategy explained 63.8% of the total variations in performance of manufacturing firms. In addition, risk hedging supply chain strategy had a positive and significant effect on firm performance (β=0.675, P

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  • Karani Anthony Muriithi & Odari Sammy & Noor Shalle, 2021. "Moderating Effect of Environmental Uncertainties on the Relationship between Risk Hedging Supply Chain Strategy and Performance of Manufacturing Firms in Kenya," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(1), pages 45-49, November.
    • Handle: RePEc:mgs:ijmsba:v:8:y:2021:i:1:p:45-49
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.81.1004
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Uncertainties; Risk Hedging Supply Chain Strategy; Performance; Manufacturing Firms;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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