European Journals of Business Management

EFFECTS OF SUPPLY CHAIN MANAGEMENT PRACTICES ON COMPETITIVE ADVANTAGE IN RETAIL CHAIN STORES IN KENYA, A CASE STUDY OF NAKUMATT HOLDING LIMITED

George Maina Mbuthia
Jomo Kenyatta University of Agriculture and Technology
KENYA
Gladys Rotich (Phd)
Jomo Kenyatta University of Agriculture and Technology
KENYA

CITATION: Mbuthia, M. G & Rotich, G. (2014). Effects of Supply Chain Management Practices on Competitive Advantage in Retail Chain Stores in Kenya, A Case Study of Nakumatt Holding Limited. European Journal of Business Management, 2 (1), 336-349.

ABSTRACT

Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage since competition is no longer between organizations, but among supply chains. This study conceptualized and develops four dimensions of SCM practice (strategic supplier partnership, customer relationship, information sharing and postponement) and tested the relationships between SCM practices and competitive advantage. Data for the study was collected from Nakumatt holding and the findings were used to determine whether higher levels of SCM practice can lead to enhanced competitive advantage in Nakumatt supermarket. The purpose of this research was to determine the impact of supply chain management practices on competitive advantage. The study focused on the causal relationships between SCM practice and competitive advantage and ignored the possible recursive relationships. This study adopted a case study design. The target population consisted of 968 employees. The study utilized 10% of the target population which was selected using a stratified random sampling technique giving a sample size of 100 respondents. Questionnaires were used as the main data collection instrument and a pilot study was subsequently carried out to pretest questionnaires for validity and reliability. The gathered data was analyzed using descriptive studies aided by Statististical Package for Social Sciences (SPSS) version 20 and findings presented on frequency tables, figures and graphs, inferences drawn from the data obtained. Correlational analysis and multiple linear regressions were carried out to establish the relationship between the research variables.


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