Assessment of block chain technology and supply chain Performance of food and beverage manufacturing firms in Nairobi city county

Abstract

Globally, technological advancements particularly in ICT have significantly transformed business operations, with blockchain technology emerging as a key innovation. As a decentralized data system, blockchain enables the digital tracking of transactions and the sharing of information across a distributed network, promoting transparency, security, and trust. For manufacturing firms, blockchain presents opportunities to streamline operations, enhance supply chain transparency, and boost performance. This study aimed to bridge knowledge gaps by investigating the impact of blockchain’s core features traceability, interoperability, security, and smart contract utilization on the supply chain performance of manufacturing firms in Nairobi City County. The research was guided by four objectives: to examine the effect of traceability, assess the influence of interoperability, evaluate the impact of security, and determine the role of smart contract utilization on supply chain performance. Two theoretical frameworks supported the study: the Resource-Based View (RBV) Theory and the Technology-Organization Environment (TOE) Framework. A descriptive research design was employed, targeting food and beverage manufacturing firms registered under the Kenya Association of Manufacturers in Nairobi City County. With a total of 375 firms, the study sampled three respondents from each representing operational, tactical, and strategic procurement levels. Stratified random sampling ensured balanced representation across the target population. Data collection was conducted through structured questionnaires distributed to procurement officers. To ensure ethical compliance, the researcher obtained an introductory letter from Mount Kenya University and a research permit from the National Commission for Science, Technology and Innovation (NACOSTI). Data were analyzed using SPSS version 26, employing both descriptive statistics (frequencies, percentages) and inferential statistics, including multiple linear regression to assess the relationships between variables. Findings revealed strong recognition of blockchain’s benefits among respondents, with 68.6% citing reduced data transmission errors, 69.8% noting improved operational efficiency, and 53.9% acknowledging enhanced data sharing. However, challenges were also reported, particularly around integration with existing IT systems and stakeholder collaboration. A one-sample t-test showed that the benefits of interoperability were statistically significant (p < 0.001), with error reduction and operational efficiency being the most impactful outcomes. In conclusion, the study found that blockchain-enabled interoperability significantly enhances supply chain performance by improving data accuracy, real-time information sharing, and operational efficiency. Despite these benefits, integration with legacy systems remains a key challenge. To address this, the study recommends that manufacturing firms work closely with technology providers and regulatory bodies to establish standardized APIs and data formats. This would promote smoother integration of blockchain with existing infrastructure, ultimately improving communication, interoperability, and overall supply chain performance.