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Supplier Risk Management Practices and Performance of Supply Chain in the Health Sector in Kenya
James Amere Owich
Jackline Akoth Odero
Abstract
Disruptions within the supply chain due to various risks can have significant and far-reaching consequences for businesses. To effectively address these risks, firms must develop robust strategies for risk management. The focal point of this study was the examination of supplier risk management practices and their influence on the performance of supply chains within the healthcare sector in Kenya. Employing a descriptive survey research design, the study targeted a pool of 102 respondents, ultimately drawing a sample of 81 staff members from four county referral hospitals in western Kenya. Data collection was carried out using closed-ended questionnaires, ensuring a methodically sound approach. To validate the research instrument, content validity was rigorously assessed, and the reliability of the instrument was established through the application of Cronbach's alpha test. Subsequently, the collected data underwent comprehensive analysis, utilizing descriptive statistics in the form of frequency and percentage calculations. Additionally, inferential analysis was conducted, employing a simple linear regression model to determine the relationship between supplier risk management practices and supply chain performance in the health sector. The study's findings revealed a substantial and positive correlation between supplier risk management practices and supply chain performance, as indicated by the coefficient results (β = 0.521, t = 7.256, p< 0.05). Consequently, the null hypothesis was rejected, affirming that supplier risk management practices wield a considerable influence on the performance of the supply chain within the Kenyan health sector. These findings hold the potential to enhance our understanding of supplier management, offering valuable insights for managers within the health sector. Notably, the study emphasizes the crucial role that supplier risk management techniques like risk identification, risk assessment, and dual sourcing play in improving the performance of the supply chain. Furthermore, these findings may serve as a valuable resource for policymakers, offering essential information that can inform the formulation and revision of policies related to supply chain management within the healthcare sector.
