The Effect of Supplier-Buyer Relationship Practices on the Performance of Motor Vehicle Assembly Companies in Kenya
DOI:
https://doi.org/10.47672/ajscm.1254Keywords:
Supplier-buyer relationship practices, Organizational performance, Relational contracting supply chain, multi-sourcing, Motor vehicle assembly companiesAbstract
Purpose: The study investigated the effect of supplier -buyer relationship practices on the performance of motor vehicle assembly companies in Kenya.
Methodology: This study was guided by relational contracting supply chain theory. The study applied a cross-sectional exploratory descriptive conclusive survey research design with a mixed approach of qualitative and quantitative research. Primary data was derived using questionnaires, supported by secondary data as the main instrument for collecting data based on a five point Likert scale on 24 motor vehicle assembly companies in Kenya using non probability sampling. Exploratory factor analysis, analysis of mean, model summary, ANOVA, and hierarchical regression were applied in analyzing data.
Findings: The study established that supplier-buyer relationship practices have no significant effect on organizational performance of motor vehicle assembly companies in Kenya.
Recommendation: This established that supplier-buyer relationship practices of strategic alliances, partnering, contracts, collaborations, and capability insignificantly explain the performance of motor vehicle assembly companies in Kenya.
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