Publication: Effect of Supplier Rating on Supply Chain Performance: A Case Study of Star-Rated Hotels in the Coast Region, Kenya
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2024-06-26
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International Journal of Scientific and Research Publications
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Abstract
The hospitality industry, particularly star-rated hotels, heavily relies on efficient and reliable supply chains to
maintain high service standards and customer satisfaction. By specifically investigating the impact of supplier
financial stability, reliability, flexibility, and ethics on supply chain performance, this research seeks to provide
valuable insights that can guide hotel management in optimizing their procurement strategies. Understanding how
these individual factors contribute to the overall supply chain dynamics will not only enhance the operational
efficiency of star-rated hotels but also contribute to the broader knowledge base in supply chain management
within the hospitality sector. Therefore, the main goal of the study was to analyze the effects of supplier
rating on supply chain performance among star-rated hotels in the coast region. The following specific
objectives were used to provide guidance; to determine the influence of supplier financial stability on
supply chain performance, effect of supplier reliability on supply chain performance, to determine the
influence of supplier flexibility on supply chain performance and to determine the effect of supplier
ethics on supply chain performance. This research adopted the transaction cost economics theory, agency
theory and the resource based view theory. A descriptive research design was used in this research. The
population of the study were the 343 senior level managers among the 49 star-rated hotels in the coast
region. Stratified random sampling technique was used to arrive at the sample size. The sample size
was 105 respondents. Primary data collected using structured questionnaires was used in this study. The
administration of the questionnaires was through Google forms. The collected data was converted into
quantitative format to make analysis using SPSS. The statistics generated were descriptive statistics
which included frequencies and percentages and inferential statistics which included a multiple linear
regression. The relationship between the response and predictor variables was shown using multiple
linear regression. The study found out that supplier-related factors including financial stability, reliability,
flexibility, and ethics have significant positive correlations with supply chain performance. Specifically,
organizations that prioritize financially stable suppliers experienced improved supply chain efficiency, reduced
disruptions, and enhanced operational effectiveness. Moreover, collaboration with reliable and flexible suppliers
led to better adherence to delivery schedules, minimized disruptions, and maintained consistent performance
standards. Ethical sourcing practices were also found to positively influence supply chain integrity, reputation,
and long-term sustainability. The study concludes that integrating supplier-related considerations into
procurement strategies and practices is crucial for optimizing supply chain resilience and effectiveness.
Organizations should prioritize supplier financial stability, reliability, flexibility, and ethics in supplier selection
processes to mitigate risks, improve operational efficiency, and achieve sustainable performance outcomes. The
study recommends that organizations conduct thorough supplier assessments to evaluate financial stability,
reliability, flexibility, and ethical practices. Clear criteria and benchmarks should be established for supplie
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Keywords
Supplier Ethics, Supplier Financial Stability, Supplier Flexibility, Supplier Rating, Supplier Reliability