SUPPLY CHAIN RISK MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE OF IMPORT AUTHORIZED ECONOMIC OPERATOR COMPANIES IN MOMBASA COUNTY, KENYA

Sophia Njenga, Dr. Angela Kaguara

Abstract


Purpose of the study: The objective of the study was to determine the effect of supply chain risk management practices on operational performance of import authorized economic operator companies in Mombasa County, Kenya.

Methodology: This research adopted a descriptive cross-sectional research design. This study targeted all 143 AEOs importers in Mombasa County.  A census survey was adopted where all the 143 import AEOs in Mombasa County were involved in the study. This scholarly investigation collected primary data from the operations and clearing department heads within the import AEOs in Mombasa County. The data was collected using a structured questionnaire with 143 issued to AEOs. The questionnaire was self-administered through drop-wait-and-pick methodology. Data was analyzed using descriptive and regression statistics generated through SPSS version 29.

Results: The findings showed that the AEOs had adopted risk identification and control to a great extent. However, they adopted risk and monitoring analysis to a moderate extent. The findings showed that the organizations took more than 1 week to deliver their products/services. Further, the organizations had a low level of operational income and customer satisfaction; high operational costs and failed to meet quality standards. From the regression analysis, risk identification, risk analysis, risk control and risk monitoring had a positive effect on operational performance.

Conclusion: The study concludes that supply chain risk management practices have a positive effect on operational performance of import AEOs in Mombasa County.

Recommendation: The study recommends increased efforts in supply chain risk identification, analysis, risk and monitoring for increased operational performance through cost efficiency, quality, delivery time and customer satisfaction. Similar research is recommended based on other factors influencing operational performance, other supply chain risk management practices, other measures of operational performance, export AEOs, other AEOs and different research methodologies.

Keywords: Economic Operator Companies, Operational Performance, Risk Identification, Risk Analysis, Risk Control, Risk Monitoring, Supply Chain Risk Management Practices


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