ROLE OF SUPPLY CHAIN RISK MANAGEMENT ON OPERATIONAL PERFORMANCE OF MANUFACUTURING FIRMS IN NAIROBI CITY COUNTY, KENYA

Supply Chain

ABSTRACT Supply chain risk management has become a critical focus for manufacturing firms facing increasing disruptions that threaten operational performance. In an increasingly volatile global market, supply chain disruptions have become a persistent challenge for manufacturing firms, particularly in developing economies. Geopolitical conflicts, economic uncertainties, logistical bottlenecks, and infrastructural inefficiencies have significantly impacted the supply chain networks for manufacturers, leading to increased operational costs, production delays, and decreased competitiveness. This study examines the role of supply chain risk management on the operational performance of manufacturing firms in Nairobi County, Kenya. Risk management strategies, including risk identification, assessment, mitigation planning, contingency sourcing, and proactive monitoring, were assessed for their influence on operational performance. This study employed a descriptive research design. Data were collected using structured questionnaires administered to 240 manufacturing firms. The gathered data were then analyzed using the Statistical Package for Social Sciences (SPSS), and Pearson correlation analysis revealed a strong, positive relationship between effective supply chain risk management and the operational performance of these firms. The findings underscore the importance of fostering risk awareness, agility, and technological integration within supply chains to optimize responsiveness and reduce vulnerability to disruptions. The study recommends that manufacturing firms strengthen their risk management capabilities to enhance operational performance, improve competitiveness, and ensure supply chain continuity. These insights provide valuable guidance for industry leaders, policymakers, and researchers seeking to develop resilient supply chain frameworks.

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