Moderating Effect of Supply Chain Pillars on the Relationship between Supply Chain Integration and Retail Outlet Performance: An Analysis of Selected Supermarkets in Kenya

Abstract

In the recent past, the retail sector landscape in Kenya has witnessed considerable supply chain disruptions and even closure of some of the giant local and international retail chains. The main purpose of the study was to establish the moderating effect of supply chain Pillars on the relationship between supply chain integration and retail outlet performance. The study adopted a cross-sectional survey design with a target population of 2654 staff drawn from Naivas, Quickmart, Chandarana, and Carrefour supermarkets across the four cities in Kenya. The study used closed-ended structured questionnaires to collect primary data. The data was analyzed using logistic regression. The study was conducted between the years 2022 and 2024. The study reported a significant moderating effect of supply chain pillars on the relationship between supply chain integration and retail outlet performance (Est. = 0.986022; p≤0.01). Supply Chain Incentive Alignment (SCIA), with an estimate of 1.3888321 (p≤0.01), had the highest contribution to increasing retail outlet performance, followed by Supply Chain Decision Synchronization (SCDS) with an estimate of 1.290342 (p≤0.01) and lastly, Supply Chain Information Sharing (SCIS) with an estimate of 0.874501 (p≤0.05). The study concluded that the efforts invested in supply chain integration practices, including information sharing, decision synchronization, and incentive alignment, are crucial for improving service delivery, customer satisfaction, and profitability in retail outlets.