Effect of employee capabilities on the supply chain performance of sugar manufacturing firms in the western region, Kenya

Abstract

Supply chain performance refers to the ability of an extended supply chain to meet end-customer demands through responsive inventory and capacity management, timely delivery, and product availability. This study sought to establish the influence of employee capabilities on supply chain performance. The study was anchored on the Resource-Based View Theory. A descriptive survey research design was employed, targeting four sugar manufacturing firms with a total population of 281 respondents. A sample size of 165 was selected using purposive and simple random sampling techniques. Data was collected using structured questionnaires. A pilot study conducted at Kibos Sugar Company in Kisumu County tested the reliability and validity of the research instruments. Reliability was confirmed with Cronbach’s alpha coefficients of 0.7 and above, while validity was ensured through expert reviews. Data analysis involved descriptive statistics (frequencies, percentages, means, and standard deviations) and inferential statistics, including linear regression. The findings revealed that employee capabilities (r = 0.664, R² = 0.441, p = 0.000) had significant positive effects on supply chain performance. The study recommends that sugar manufacturing firms invest in enhancing employee competencies, streamline production cycles, improve fleet management systems, and promote effective information sharing. Additionally, adopting democratic management styles that encourage employee participation and innovation is essential for optimizing supply chain performance.