Effect of Contract Management Phases on Supply Chain Performance among Manufacturing Firms in Nairobi County, Kenya
DOI:
https://doi.org/10.47604/ijscm.2197Keywords:
Supply Chain, Performance, Contracting, Management, Execution, ManufacturingAbstract
Purpose: Contract management entails process which ensures parties to the contract undertake the contracts as per the objectives and obligations in the contract. Contract management also involves execution of roles and responsibilities through creation of conducive working relationship to all parties in the agreement. The objective of the study was to establish effect of contract management phases on supply chain performance among manufacturing firms in Nairobi County.
Methodology: The population of the study was manufacturing companies which are based in Nairobi, Kenya. Nairobi has 640 manufacturing firms. The sample size of this study consisted of 246 supply chain managers in manufacturing firms in the Nairobi, obtained through stratified sampling and randomly selected. Self-administered questionnaire were used to collect data from the respondents. The quantitative data was coded and grouped into to various categories, percentages, frequencies, means were derived and presentation done through tables for compiling the study.
Findings: The study found that pre-contract phase, solicitation, contract execution phase, post award phase influenced supply chain performance as per correlation analysis. The findings indicted buyer specifications are emphasized at pre-contract stage, the contract is signed at execution stage and deliverable during post ward phase and all the stages are crucial for supply chain performance at manufacturing firms. The study concludes that manufacturing firms depend highly on the clear contract singing and fulfillment of the contractual obligations by all parties across the phases. The study also concludes that the success of the firm will depend on efficiency in supply chain therefore; the management should ensure that there are no lapses in the procurement process.
Unique Contribution to Theory, Practice and Policy: The study recommends that there is need for manufacturing firms in Kenya to invest in constant training of their employees on effective contract management across all the phases to enhance their performance. The study also recommends that manufacturing firms in Kenya should put in place appropriate measures that ensure that potential risks regarding contract management phases, detected in advance, and mitigated to enhance operational performance.
Downloads
References
Azeem, H., Rashid, C. &Halim, Z. (2010). Effect of information and Knowledge Sharing on Supply Chain Performance: A survey Based Approach.3 (2), 11-12
Allen, D. (1999). Transaction costs. Encyclopedia of law and economics. Retrieved from: ecsocman.hse.ru
Baily, P. (2005). Purchasing principles and management. New Delhi: Pearson Education.
Chong, H., Balamuralithara, B. & Chong, S. (2011). Construction contract administration in Malaysia using DFD: a conceptual model. Industrial Management & Data Systems, 111(90), 1449-1464.
Johnston, D., McCutcheon, D., Stuart, F., & Kerwood, H. (2004). Effects of supplier trust on performance of cooperative supplier relationships. Journal of operations Management, 22(1), 23-38.
Kamau, I. (2013). Buyer-supplier relationships and organizational performance among manufacturing firms in Nairobi, Kenya, Unpublished PhD dissertation, Nairobi: University of Nairobi.
Kakwezi, P. (2012). Procurement Contract Management in Public Procurement and Disposal Entities (PDES). International Journal of Research Journal of Economics and Business Studies, 1(2), 56–61.
Kamotho, K. (2014). E Procurement and Procurement Performance Among State Corporations in Kenya. Unpublished Master of Arts Thesis: University of Nairobi.
KNBS (2012), Leading Economic Indicators. Nairobi: Kenya National Bureau of Statistics.
KPMG. (2014). Manufacturing in Africa, Sector Report. Retrieved from: kpmg.com/Africa
Nyabiage, J., & Kapchanga, K. (2014). Thousands of jobs on the line as tens of firms shut down local units. The Standard Digital, Sunday, October 12th.
Oketch, C. (2014). Supply chain performance and performance of manufacturing pharmaceutical firms in Kenya, Unpublished PhD dissertation, Nairobi: University of Nairobi.
Orege, E. (2016). The Effects of Capital Structure on Profitability of Manufacturing and Allied Companies Listed In Kenya Capital Market, Unpublished PhD dissertation, Nairobi: United States International University-Africa.
Oyuke, J. (2012). How Bad Debts led a bank to close doors. Business Journal Retrieved November, 18(1), 10-15.
Rotich, C. (2014). Contract Management Practice and Operational Performance of State Corporations in Kenya. Unpublished Master of Business Administration Thesis: University of Nairobi.
Rotich, J. (2012). Contract management practice and operational performance of state corporations in Kenya. Master’s Thesis submitted to School of Business at the University of Nairobi.
Schiele, H. (2006). How to distinguish innovative suppliers? Identifying innovative suppliers as new task for purchasing. Industrial Marketing Management, 35(8), 925-935.
Silvana, T. (2015). The Contract Management in Public-Private Partnership. Retrieved from https://fenix.tecnico.ulisboa.pt/downloadFile/395144992772/Resumo alargado.pdf
Vatankhah, S., Barati, O., Tofighi, S., & Rafii, S. (2012). Driving to Contract Management in Health Care Institutes of Developing Countries. Iranian Red Crescent Medical Journal, 14(4), 235–239.
Vernon, R. (2017). International investment and international trade in the product cycle. In International Business. London: Rout ledge.
World Bank (2014). Anchoring High Growth: Can Manufacturing contribute more?. Geneva: World Bank
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Peter Mugumu Kamau, Dr. David Kiarie Mburu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
