Purpose: With a declining purchasing power, ravage by calamities and unfavourable political environment, the electricity sub-sector in Africa has witnessed dwindling fortunes in the recent past. Although average access to electricity in the region has been rising steadily, tariffs have been increasing while government tariffs subsidies have become unsustainable, forcing an introspection, to turn the tides. This article investigated the relationship between integrated logistics systems in supply chain management and business economic benefits in the electricity subsector in Kenya. The resource-based view theory of competitive advantage and the institutional theory of systems and structures were used to address the role of integrated logistics systems as a major driver of competitiveness in supply chain activities. Methodology: Descriptive research design and regression analysis were applied to ascertain the association between quality management practices, resource activation, and capability level on one hand and business economic benefits (BEB) in form of customer satisfaction, cost reduction, and cycle time reduction on the other. Findings: The results indicate that there is significant statistical relationship between integrated logistics systems and overall performance in the energy sub-sector in Kenya. Specifically; quality management practice, resource activation level and capability levels positively and significantly influence cycle time reduction; quality management practice and resource activation level positively and significantly influence quality of customer satisfaction in a firm's operations. The overall regression model is of the form: P =5065 + 604Q +155R +74C, where P is overall performance; Q is quality management practice; R is resource activation level and C is capability level. Therefore integrated logistics systems are an imperative component of supply chain as it accrues overall business economic benefits in, inventory management, customer satisfaction, and efficacy in business operations. Integrated logistics systems enhances a firm's competitiveness and facilitates the attainment of competitive advantage. Investing in integrated logistics systems should therefore be a top priority for firms keen on growth. Unique contribution to theory, practice and policy: The research expands knowledge in the growing logistics and supply chain integration sphere in the service industry and beyond. It acts as a benchmark for further studies in the electricity subsector and other segments of the economy to inform policy and decision-making. The study calls for firms to embrace integrated logistics systems and invest in training and capacity building for its personnel to catalyze firm and customer value.
<p><em>Worldwide, Small and medium-size enterprises (SMEs) exhibit inimitable financial needs. While SMEs remain fundamental to economic growth, their mortality rate in Kenya approaches 90% by the second year, mainly owing to lack of credit. However, scholarly endeavors exploring the impact of alternative finance (AF) on managerial competency - efficiency nexus for manufacturing SMEs have received little attention in Kenya. To resolve this conundrum, a thorough study to investigate how AF impacts managerial competency - efficiency nexus is necessary. The study used a cross-sectional research design, employing both qualitative and quantitative research approaches. The target population was 171 SMEs registered with Kenya Association of Manufacturers. The accessible population was 136 SMEs owners/managers. A semi-structured questionnaire was used to collect primary and secondary data. Data envelopment analysis was used to measure efficiency, multiple regression modeling used to analyze the direct relationships while hierarchical moderated multiple regression analysis employed to test moderation. Partial Least Squares Structural Equation Modeling was used to test robustness of our results. The findings of this study demonstrate that managerial competency positively influences efficiency (β = 0.150, t-value =10.246, P<0.05), and that alternative finance does moderate managerial competency relationships with efficiency (R-Square change of 21.7%).We suggest trainings for manufacturing SME owners/managers in Kenya on the pivotal role of alternative finance to facilitate SMEs achieve higher efficiencies and accelerate economic growth.</em></p>
Worldwide, Small and medium-size enterprises (SMEs) exhibit inimitable financial needs. While SMEs remain fundamental to economic growth, their mortality rate in Kenya approaches 90% by the second year, mainly owing to lack of credit. However, scholarly endeavors exploring the impact of alternative finance (AF) on managerial competency - efficiency nexus for manufacturing SMEs have received little attention in Kenya. To resolve this conundrum, a thorough study to investigate how AF impacts managerial competency - efficiency nexus is necessary. The study used a cross-sectional research design, employing both qualitative and quantitative research approaches. The target population was 171 SMEs registered with Kenya Association of Manufacturers. The accessible population was 136 SMEs owners/managers. A semi-structured questionnaire was used to collect primary and secondary data. Data envelopment analysis was used to measure efficiency, multiple regression modeling used to analyze the direct relationships while hierarchical moderated multiple regression analysis employed to test moderation. Partial Least Squares Structural Equation Modeling was used to test robustness of our results. The findings of this study demonstrate that managerial competency positively influences efficiency (? = 0.150, t-value =10.246, P<0.05), and that alternative finance does moderate managerial competency relationships with efficiency (R-Square change of 21.7%). We suggest trainings for manufacturing SME owners/managers in Kenya on the pivotal role of alternative finance to facilitate SMEs achieve higher efficiencies and accelerate economic growth.
<p><em>Globally, small and medium-size enterprises(SMEs) hold great economic growth potential, however their mortality rate is high, due to lack of credit. The SMEs mortality rate in Kenya is 90% by the second year. Scholarly endeavors to explore the influence of alternative finance (AF) on operational characteristics - efficiency nexus have received little attention, more so for SMEs who have unique financial needs. Although AF appears to be the preferred mode of financing and maintaining start-ups, its impact on the survival, growth and success of manufacturing SMEs is not well documented in Kenya. This study focused on establishing the influence of alternative financing on the relationship between firm-size and efficiency of SMEs in Kenya. The study used a cross-sectional research design. The target population was SMEs registered with Kenya Association of Manufacturers (KAM). The accessible population was 136 SMEs owner/managers. The study used a self-administered semi structured questionnaire to collect primary and secondary data. Data envelopment analysis was used to measure efficiency of SMEs, multiple regression modeling to analyze relationships and hierarchical moderated multiple regression analysis was used to assess the influence of the moderator. The findings revealed that firm-size positively (β = 0.214, t-value =4.983, P<0.05.) influences efficiency and that alternative finance does moderate (R-Square change 11.1 %) firm size relationships with efficiency. The study recommends that owner/managers of manufacturing SMEs in Kenya should give attention to opportunities for sustainable increase in firm size to improve their efficiency.</em></p>
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