EFFECT OF SOURCING FLEXIBILITY ON COMPETITIVE ADVANTAGE AMONG KENYAN SMALL-SCALE IMPORTERS WITHIN GIKOMBA MARKET, NAIROBI COUNTY KENYA
Main Article Content
Abstract
The objective of the study was to examine the effect of sourcing flexibility on competitive advantage among small-scale importers in Gikomba Market, Nairobi County. The study adopted a descriptive research design. The target population for this study comprised 1,500 licensed small-scale importers at Gikomba Market, and the sampling frame was obtained from The Nairobi Importers and Small Traders Association (NISTA). The sampling technique used was stratified sampling, selecting 316 importers. Primary data was collected using a structured questionnaire. The questionnaire contained closed-ended questions, scored and rated on a five-point Likert scale. Data cleaning and analysis were performed using SPSS Version 25.0 software, and descriptive and inferential statistics were generated. The descriptive results included means and standard deviations, while the regression results were based on the Pearson correlation coefficient and simple linear regression models. Finally, the output of the analysis was expressed as frequencies and percentages, with the results presented in tables and charts.
Results showed that a range of suppliers ensured consistent product quality (mean = 3.67). Participants agreed that reducing delivery time lowers costs and enhances competitiveness (mean = 3.82). Furthermore, supplier switching costs were found to be moderate, with 43% agreeing that easy transitions between suppliers improve competitive positioning (mean = 3.84). Pearson correlation analysis revealed a significant positive correlation (r = 0.774, p < 0.05) between sourcing flexibility and competitive advantage. Regression analysis confirmed a strong relationship (R = 0.774, R² = 0.599, p < 0.05), indicating that an increase in sourcing flexibility leads to a corresponding increase in competitive advantage.
The study concludes that lead time reduction plays a critical role in enhancing cost efficiency and competitive pricing. The study recommends regularly evaluate suppliers' reliability to ensure quality and timely deliveries by establishing performance metrics and conducting quarterly reviews. Further studies could investigate the effect of supplier switching costs, as these may significantly influence supply chain flexibility.
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References
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