Effect Of Supply Chain Collaboration On The Supply Chain Performance Of Petroleum Companies In Nairobi

Abstract

Organizations today operate in highly competitive and globalized markets characterized by a rise in customer demands as well as an increase in the need for quality, efficient and flexible production of goods and services. As such, organizations have been forced to reconfigure their production strategies to be able to respond accordingly to these market forces by adopting practices that improve Supply Chain Performance such as Supply Chain Collaboration. This study was set out to identify how this practice has affected the Supply Chain Performance of Petroleum Companies in Nairobi County. The study’s objectives included to examine the effect of Customer Collaboration, Supplier Collaboration and Internal Collaboration on the Supply Chain Performance of petroleum companies in Nairobi. This therefore means that the target population for the study was petroleum companies in Nairobi County. The study adopted a descriptive research design and collected data using self-administered questionnaires. Once the data has been collected, the study used both descriptive statistics and multiple regression analysis to present demographic information and to illustrate the effect of Supply Chain Collaboration on Supply Chain Performance respectively. This data was be analyzed using SPSS (22). Results indicated that Supply Chain Collaboration has an effect on Supply Chain Performance of Petroleum Companies in Nairobi. Specifically, Customer Collaboration significantly increases Supply Chain Performance. Additionally, an increase in Supplier and Internal Collaboration results to a significant increase in Supply Chain Performance. An R-Square of 0.419 was also revealed, implying that 41.9% of the independent variables, i.e. Internal Collaboration, Customer Collaboration and Supplier Collaboration explained the independent variable i.e. Supply Chain Performance. The study therefore concluded that indeed, Supply Chain Collaboration has an effect on Supply Chain Performance of Petroleum Companies in Nairobi. It therefore recommended stakeholders to Petroleum Companies and other interested parties to collaborate their customers, suppliers as well as partake in internal collaboration so as to increase their Supply Chain Performance.