Supply Chain Flexibility and Firm Performance: Does Absorptive Capacity Matter? Empirical Evidence from Manufacturing Firms in Kenya
Main Article Content
Keywords
Supply chain flexibility, absorptive capacity, firm size, firm performance
Abstract
This study investigates the moderating effect of absorptive capacity on the link between supply chain flexibility and business performance. There is less knowledge about this link, especially when it comes to manufacturing enterprises in developing countries. The study employed a cross-sectional survey methodology and implemented a systematic random sampling strategy. Based on survey data from 144 respondents, data collected using structured questionnaire in manufacturing firms are used to empirically examine the proposed model using hierarchical regression analysis. Controlling for firm size, this paper's findings indicate that supply chain flexibility has a positive effect on firm performance. Furthermore, the moderating effect of absorptive capability on the association between supply network flexibility and firm performance was found to be negative and statistically insignificant. This suggests that absorptive capacity does not play a significant role in moderating the relationship between supply chain flexibility and firm performance. The results of this study can provide useful guidance for the management of manufacturing firms. Research on supply chain flexibility and absorptive ability can provide valuable insights for managers, particularly in nations with dynamic business environments that are typical of the manufacturing industry. It will assist them in implementing novel strategies to enhance the responsiveness and proactivity of supply chains in response to consumer demands.
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Apr 8, 2025
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Bor , J., & Muthoni , G. B. (2025). Supply Chain Flexibility and Firm Performance: Does Absorptive Capacity Matter? Empirical Evidence from Manufacturing Firms in Kenya. Journal of Business, Economics and Management Research Studies, 3(1), 148–177. https://doi.org/10.69897/jobemrs.v3i1.204
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Author Biographies
Jone Bor , Department of Marketing & Logistics Management, School of Business & Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Department of Marketing & Logistics Management, School of Business & Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Gloria Beth Muthoni , Department of Marketing & Logistics Management, School of Business & Economics, Moi University, P.O. Box 3900-30100, Eldoret, Kenya
Department of Marketing & Logistics Management, School of Business & Economics,
Moi University, P.O. Box 3900-30100, Eldoret, Kenya