Influence of Firm Centrality on Supply Chain Performance of Agrochemicals Production Firms in Kenya

Abstract

Characteristically, the supply-chain managers attempt to optimize profitable operations in the manufacturing and distribution in the supply chain. Integrated supply chain optimization is the large-scale streamlining of the links in the supply chain in such a way as to ensure the optimal operation of the links and actors in the supply chain. However, integrated supply chain optimization has not been extensively studied for its effect on the performance of distribution companies as opposed to manufacturing companies. Therefore, the purpose of the study was to examine the influence of firm centrality on supply chain performance of agrochemical production firms in Kenya. The Embeddedness theory guided the study which was also grounded on a positivist philosophy. This study employed the descriptive survey design targeting 32 agrochemical production firms with the unit of observation consisting of 96 persons being one management, one procurement and one supply chain staff per firm. The study adopted the census method and used primary data collected using researcher designed questionnaire and interview schedule that were both pretested using the test-retest method for reliability and content and construct validity. Data was analyzed using descriptive and inferential statistics with descriptive statistics comprising frequencies, percentages, means and standard deviations while inferential statistics comprised Pearson’s correlation coefficient and multiple regressions. The findings revealed that Firm Centrality was a strong predictor of Supply Chain Performance of Agrochemicals production firms in Kenya.The study recommended that the agrochemical production firms need to build stronger firm centrality in the supply chain.