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Risk Management Practices and Supply Chain Performance in County Governments of Western Kenya: Applications of risk identification

Abstract: Risk management has drawn attention to procurement entities globally due to continuous changes in the supply chain function. Poor risk management strategies may attract issues such as lack of risk decision-making, accountability, risk identification, risk assessment, mitigation, and monitoring. Many studies conducted on risk management practices on supply chain performance produced conflicting results, since some had positive while others had negative influence and therefore, the need for conducting the current study. The purpose of the study was to establish the influence of risk management practices on supply chain performance on County governments in western Kenya. The study specifically determined the influence of risks identification on supply chain performance in County governments of western Kenya. The study was guided by the economic theory of agency. The study used a descriptive research design. The target population was 150 employees comprising procurement officers, logistics managers, and directors of audit service, quality assurance, and finance officers from Vihiga, Kakamega, Bungoma and Busia Counties. The study used a census sample strategy, focusing on all 150 employees. Primary data were gathered for the study utilizing closed-ended questionnaires. Both descriptive and inferential statistics were used to analyze the data. Using the Pearson product moment correlation and the linear regression model, inferential statistics were examined. The correlational results showed that risk identification had a significant positive association since their p-values were less than 0.05. The regression model results of the study showed that risk identification had a coefficient of 0.191, and a p-value of 0.010, meaning that risk identification, had a significant positive influence on supply chain performance. It was recommended that county governments’ managements should perform a thorough screening of suppliers before awarding tenders.

Keywords: Risk Management Practices: Supply Chain Performance: County Governments

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