EFFECT OF SUPPLIER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF KENYA AIRWAYS LIMITED
Rose Chepchumba Kosgei - Master of Science in Procurement and Logistics, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Robert Gitau - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The main purpose of this study was to evaluate the impact of supplier relationship management on organizational performance. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This is because competition is no longer between organizations, but among supply chains. The study looked at two parameters; trust and commitment as elements of supplier relationships and the effect that these have on organizational performance. The research involved a cross sectional study design that was carried out in Kenya Airways, where a sample of 82 respondents was selected from a target population of 272 KQ employees to answer research questions of interest. Stratified random sampling was used to come up with the sample size since the population in different departments at KQ was considered to be heterogeneous. The primary data for the study was collected using the questionnaires. The results of the study were presented using frequency tables. Quantitative data was analyzed using descriptive and regression statistics with the aid of Statistical Package for Social Sciences (SPSS 21.0). The study established that understanding and practicing of supply chain management with key focus on supplier relationships is an essential prerequisite for staying competitive in the global race and enhancing profitably in the market. The study also found out that there was a great opportunity for organizations to improve its performances through proper use of SRM strategies and therefore recommended that organizations should show more commitment in SRM by having systems to monitor, appraise and evaluate performance at a strategic level. This would undoubtedly improve chances of survival in the highly competitive market.
