Effect of Cross-Functional Information Sharing On Supply Chain Agility of Cosmetics Manufacturing Firms in the County Government of Nairobi, Kenya

Abstract

Supply Chain Agility is widely regarded as a critical element that affects firms’ competitiveness at the strategic level. This is because firms with Supply Chain Agility have better performance in responding to unforeseen events. The purpose of this study, was to assess the effect of Cross Functional Information Sharing on Supply Chain Agility of Cosmetics Manufacturing firms in the County Government of Nairobi. Cross Functional Information Sharing is generally considered an enabler of a firm’s Supply Chain Agility. Information Sharing has significant effects on the performance of Cosmetics Manufacturing Firms. These trends have led to expanding the scale of procurement and reducing operating and purchase costs in order to improve the responsiveness of the supply chain. Relational View theory, Resource Based View Theory and Stategy, Structure and Performance Theory was adopted in the study. Cross-sectional survey research design was used in the study. The target population of the study was 714 employees working in the Cosmetic Manufacturing Firms in the County Government of Nairobi, Kenya. A sample of 256 was selected from the target population using a Multi Stage Sampling Technique. Both descriptive and inferential statistics was used to analyse the collected data. The results indicates that there is a positive and statistically significant correlation between Cross Functional Information Sharing and Supply Chain Agility (r=.582, p < 0.01). This is a clear indication that any effort to improve the communications channels making it more informative will lead to an increase in supply chain agility. Therefore the study concludes that Cross functional information sharing is a pertinent factor as it affects the Supply Chain Agility of Firms. With the growing technological advances and the emergence of the global information infrastructure, firms should possess the suitable competitive inter-organisational informational systems to enable them to achieve the rapid and effective response to the customer needs and changing expectations

Keywords: Competitiveness, Cross-Functional Information Sharing, Performance, Supply Chain Agility

Article Review Status: Published

Pages: 12-29 (Download PDF)

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