Supply Chain Traceability and Performance of Horticultural Firms in Kenya

Abstract

This study examined the relationship between supply chain traceability and the performance of horticultural firms in Kenya. Specifically, the study sought to determine the effects of raw material tracking traceability, product tracking traceability, distribution tracking traceability, and consumer tracking traceability on the performance of horticultural firms in Kenya. In addition, the study assessed the moderating effect of the horticultural legal framework on the relationship between supply chain traceability and firm performance. The study was anchored on relevant theories and models that informed the study variables and hypotheses. A cross-sectional survey research design was adopted. The unit of analysis comprised 658 registered horticultural firms in Kenya, while the target population consisted of 2,632 respondents drawn from the heads of procurement, production, administration, and finance departments, with four respondents selected from each firm. Sampling was done on the 2632 respondents working in the 658 registered horticultural firms in Kenya. The sample size of 256 respondents was determined using Slovin's formula, and respondents were selected through stratified random sampling. The study utilized both primary and secondary data. Secondary data were obtained from the annual reports of horticultural firms, while primary data were collected using structured and semi-structured questionnaires. A pilot study involving 10% of the sample was conducted to assess the validity and reliability of the research instruments. The semi-structured questionnaires generated both qualitative and quantitative data. Qualitative data were analysed using thematic analysis, and the findings were presented narratively. Quantitative data were analysed using descriptive and inferential statistics with the aid of Statistical Package for the Social Sciences (SPSS) version 28. Descriptive statistics included frequencies, percentages, means, and standard deviations, while inferential statistics comprised correlation analysis, multiple regression analysis, and stepwise regression analysis. The findings of the study are presented using tables, figures, and histograms. The findings revealed that product tracking traceability has a positive and statistically significant effect on the performance of horticultural firms in Kenya. Similarly, raw material tracking traceability, distribution tracking traceability, and consumer tracking traceability were found to have positive and statistically significant effects on firm performance. Furthermore, the study established that the horticultural legal framework significantly moderates the relationship between supply chain traceability and the performance of horticultural firms in Kenya. The study concludes that strengthening supply chain traceability across raw material sourcing, production, distribution, and consumer engagement enhances operational efficiency, product quality, and customer satisfaction, thereby improving firm performance. Accordingly, the study recommends that horticultural firms invest in comprehensive traceability systems and align their operations with the prevailing horticultural legal framework to maximize performance.