Effects of Contract Management Practices on Supply Chain Performance on Manufacturing Firms in Nairobi County, Kenya

Abstract

The study focused on investigating the effect of contract management practices on supply chain performance of manufacturing firms in Nairobi County. In addressing the latter, the study established the effect of relationship management, contract administration, contract appraisal and contract appraisal and contract closure on supply chain performance as the specific objectives of the study. Descriptive research design was used for the study and the questionnaire was the main data collection instrument. The study constituted a sample of manufacturing firms in Nairobi County, the number of employees in the sample was 198. Statistical analysis was carried out using statistical packages for social science SPSS version 22. Inferential statistics was used to make predictions or inferences about the population from observations and analyses. The study findings indicate that the four variables, that is relationship management, contract administration, post contract appraisal and contract closure positively and significantly affect supply chain performance. As such, manufacturing firms should embrace more relationship management. The study recommends that future studies should focus on the other sectors.

Keywords: Contract management practices, Supply chain performance, Relationship management, Contract administration, Contract appraisal, Contract appraisal, Contract closure