SUPPLY CHAIN ORIENTATION AND PERFORMANCE OF CLASSIFIED TOURISM ENTERPRISES IN KENYA
Purity Wacuka Nyamu - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Dennis Juma (Phd) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Supply chain diversification is major practice of expanding and diversifying a company’s sources of supply, distribution channels, and market reach to reduce risks and enhance performance. This approach involves incorporating various suppliers, markets, products, and digital technologies into the supply chain to improve flexibility, reduce dependency on single sources, and create opportunities for innovation and business growth. Supply chain diversification as way of improving flexibility by minimizing risks by increasing supplier agility. Supply chain diversification is a strategic approach that involves spreading risks across various suppliers, regions, and transportation methods to enhance resilience and mitigate disruption. The study sought to examine the influence of Supply chain diversification strategies on electronic industry performance, case study of Kisii County, Kenya. The specific objectives will be to examine the influence of supplier diversification on performance of electronic industry, to determine the influence of market diversification on performance of electronic industry. The study adopted descriptive research design. Target population for this study was 380 respondents. The sample size of 195 was drawn. Research instruments was the questionnaires. Validity was done in Kisii using content and construct validity index which was tested using supervisors opinion. Reliability was achieved through Cronbach alpha. Data collected was analyzed using descriptive statistics methods. Inferential statistics was used to determine the effect on variables. Simple regression was used to test the direct effect while hierarchical linear regression was used to test the moderating role. The results were presented inform of tables, figures, percentage, frequencies, means and standard deviation. The study concludes that supply chain diversification, encompassing supplier, market, product, and Digital Procurement policies practices, plays a vital role in enhancing the performance of the electronic industry in Kisii County. Supplier diversification fosters flexibility and innovation by reducing risks and enabling access to new technologies and competitive pricing. Market diversification drives growth by expanding customer bases, opening new revenue streams, and strengthening reputations, especially when supported by employee training initiatives. The study recommends that firms prioritize market diversification, accelerate digital adoption, and optimize product accessibility and customer service to improve business performance. Additionally, while supplier diversification is beneficial, it must be carefully managed to avoid risks related to inconsistent product quality. These strategies are essential for securing long-term growth and maintaining a competitive edge in a rapidly evolving market.