Effect Of Risk Assessment Practices On Supply Chain Performance In Public Corporations: Case Of Kenya Power Company
Abstract/ Overview
ABSTRACT
Risk iassessment ipractices ienable iorganizations ito iprioritize irisks ito iestablish imost ito
ileast icritical iimportance iin iranking. iRisks iare ievents icaused iby iuncertainties, iwhich ican
ihave ipositive ior inegative ieffect ion ithe iproject iobjective. iSupply ichains ihave iexpanded
irapidly iover ithe idecades, iwith ithe iaim ito iincrease iproductivity, ilower icosts iand ifulfill
idemands iin iemerging imarkets. iHowever, ithere iare irisks iwithin ithe iorganization iwhich
icould igreatly iaffect iall iunits iof ithe iorganization iwhen ithe idisruptions iare inot iproperly
icontrolled, itherefore irisk iassessment ishould ibe ibuilt iinto ithe imanagement iof iprojects.
iSome ifirms iconcentrate ion ithe icustomer isatisfaction iand igive ilittle iconcentration ito
icustomer iservice itrends ithat iwill idrive icustomer isatisfaction iin ithe ifuture ithus ithere iis ia
iknowledge igap iwhich ithis istudy isought ito iaddress. iOrganizations ihave inot iclearly
ishown ithe ifirm irisk ilevels iand ihow ithey ishould ibe istrongly imonitored ito iensure icost
ireduction iand iimprove iprofitability. iThe istudy iassessed ithe ieffect iof irisk iassessment
ipractices ion isupply ichain iperformance iin iKenya iPower iCompany iin iKisumu.
iSpecifically, ithe istudy: iassessed ithe ieffect iof irisk iidentification ipractice ion isupply
ichain iperformance, idetermined ithe ieffect iof irisk ianalysis ipractice ion isupply ichain
iperformance iand iestablished ithe ieffect iof irisk ievaluation ipractice ion isupply ichain
iperformance. iThe istudy iwas ibased ion iagency iand ishareholders itheories iand iguided iby
ia iconceptual iframework iwhere ithe idependent ivariable iwas isupply ichain iperformance
iand iindependent ivariable iwas irisk iassessment ipractices. iThe istudy iadopted
icorrelational iresearch idesign, ithe ipopulation icomprised iof i45 iheads iselected ifrom
idifferent idepartments iin iKenya iPower iCompany. iThe istudy iemployed irandom
isampling idesign. iData iwas icollected ifrom iboth iprimary iand isecondary isources.
iValidity iwas itested ithrough ijudgement iof iexpert‟s iopinion iwhile iReliability iwas
iascertained ithrough iCronbach‟s ialpha iwhere iα i 0.7 iwas iconsidered ireliable. iData iwas
ianalyzed iusing idescriptive iand iinferential istatistics. iFindings irevealed ithat irisk
iidentification ipractice iwas ia ipositive iinsignificant ipredictor iof isupply ichain
iperformance i(β i= i.035 i(p i= i.05), irisk ianalysis iwas ia ipositive isignificant ipredictor iof
isupply ichain iperformance i(β i= i.326 i(p i= i.000) iand irisk ievaluation iwas ia ipositive
isignificant ipredictor iof isupply ichain iperformance i(β i= i.314 i(p i= i.05). iWhen ip>0.05,
ithe iNull ivalues ibecome iinsignificant, imeaning ithat ia iunit ichange iin ipractice iof irisk
iidentification, irisk ianalysis iand irisk ievaluation ileads ito ian iincrease iin isupply ichain
iperformance. iThe istudy iconcludes ithat iembracing irisk iidentification, irisk ianalysis iand
irisk ievaluation ileads ito iincreased isupply ichain iperformance. i iThe istudy irecommends
ithat iKPLC iKisumu ibranch ishould iintensify ithe ipractice iof irisk iidentification, irisk
ianalysis iand irisk ievaluation ias ithis iwas ifound ito iimprove isupply ichain iperformance iof
ithe iutility. iThe iresults iof ithe istudy imay ibe iused iby ipolicy imakers ion irisk iassessment
ipractices iand isupply ichain iperformance iby iresearchers ias ia isource iof iliterature.