Influence of Lead Time System on Performance of Manufacturing Firms in Kenya


  • Dr. Nehemiah Kiprop Kiplagat, PhD Kabarak University



This study sought to determine the influence of lead time system on performance of manufacturing firms in Kenya. Increasing competitive pressures are forcing companies to increase their rates of innovation to shorten each product’s duration in the market, thereby compressing each product’s life cycle. This study employed a descriptive survey research design to accomplish its goals since it has enough provision for the protection of bias and maximized reliability. The target population comprised of managers in manufacturing firms that are members of the Kenya Association of Manufacturers (KAM). KAM therefore provided the sampling frame for this study. As at 2017, KAM had a membership of 903 manufacturing firms. A sample of 90 respondents was drawn from this population. Primary data was collected using a semi-structured questionnaire which was self-administered. Data obtained was processed and analyzed using descriptive and inferential statistics. The results of the data analysis were presented in charts and tables. The findings revealed that lead time system accounted for 7.6% of change in performance of manufacturing firms in Kenya. The results showed that organisational policy had no intervening effect on performance and lead time system. Lead time system significantly influences performance of manufacturing firms in Kenya. This study recommends that manufacturing firms should ensure that they are proactive in activities that reduce lead time.

Keywords: Lead time system, Manufacturing firm, Performance, Kenya.

Author Biography

Dr. Nehemiah Kiprop Kiplagat, PhD , Kabarak University

Acting Director, Institute of Postgraduate Studies


Amemba, C.S., Nyaboke, P, G., Osoro, A., & Mburu, N. (2013). Elements of Green Management. European Journal of Business and Management, 5(12), 51-61.

Arani, W., Mukulu, E., Waiganjo, E. & Wambua, J. (2016). Strategic Sourcing an Antecedent of Resilience in Manufacturing firms in Kenya. International Journal of Academic Research in Business and Social Science, 6(10), 1-18.

Billington, C., Callioni, G., Crane, B. et al. (2004). Accelerating the profitability of Hewlett-Packard’s supply chains. Interfaces, 34(1), pp. 59–72.

Christopher, M. (2011). Logistics & Management. Harlow, Great Britain: Financial Times - Prentice Hall.

Creswell, J. W. (2013). Research design: Qualitative and quantitative approaches. Thousand Oaks: CA Sage.

Daaboul, J., Da Cunha, C., & Bernard, A. (2011). Design for mass customization: Product variety vs. process variety. CIRP Annals - Manufacturing Technology, 60, 169-174.

Dubois, A. (2003). Strategic cost management across boundaries of firms. Industrial Marketing Management, 32, 365-374.

Farasyn, I., Humair, S., Kahn, J.I. et al. (2011). Inventory Optimization at Procter & Gamble: Achieving Real Benefits through User Adoption of Inventory Tools. Interfaces, 41(1), pp.66-78.

Gadde, L.-E., Håkansson, H., & Persson, G. (2010). Supply Network Strategies. Chichester: John Wiley & Sons Ltd.

Gwavuya, F. (2011). Leadership Influences on Turnover Intentions of Academic Staff in Institutions in Zimbabwe, 9 (1), 1-15.

KAM Annual Report (2017), Kenya Association of Manufacturers.

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Delhi: New Age International (P) Limited Publishers.

Mathuva, D. (2013). Determinants of corporate distribution holdings: Evidence from a developing country. The International Journal of Applied Economics and Finance, 7, 1-22.

Moinzadeh, K. (2001). An improved ordering policy for continuous review distribution systems with arbitrary inter-demand time distributions. IIE Transactions, 33, 111–118.

Moinzadeh, K. (2002). A multi-echelon distribution systems with information exchange. Management Science, 48, 414–426.

Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative and qualitative approaches. Nairobi: Acts Press.

Okanda, O., Namusonge, G.S., & Waiganjo, E.(2016).Influence of Supply Planning Practice on the Performance of the Unit of Vaccines and Immunizations in the Ministry Health, Kenya. International Journal of Healthcare Sciences, 4(1), 276-286.

Okello, J. O., & Were, S. (2014). Influence of supply chain management practices on performance of the Nairobi Securities Exchange’s listed, food manufacturing companies in Nairobi. International Journal of Social Sciences and Entrepreneurship, 1(11), 107-128.

Orodho, A. J. (2003). Essentials of Educational and Social Sciences Research Method. Nairobi: Masola Publishers.

Ouyang, L.H., Wu, K.-S., & Ho, C.H. (2007). An integrated vendor-buyer distribution model with quality improvement and lead time reduction. International Journal of Production Economics, 108, 349-358.

Sarmah, S.P., Acharya, D., Goyal, S.K. (2007). Coordination and profit sharing between a manufacturers and a buyer with target profit under credit option. European Journal of Operational Research 182(3), 1469–1478.

Snyder, L.V. (2006). Facility location under uncertainty: A review, IIE Transactions, 38, 537-554.

Tsiakis, P., Shah, N. and Pantelides, C. (2001). Design of Multi-echelon Supply Chain Networks under Demand Uncertainty, Industrial Engineering Chemical Resource. American Chemical Society, 40, 3585-3604.

Van der Vaart, T., & van Donk, D. P. (2008). A critical review of survey-based research in supply chain integration. International Journal of Production Economics, 111, 42-55.

Vernimmen, B., Dullaert, W., Willemé, P., & Witlox, F. (2008). Using the distribution-theoretic framework to determine cost-minimizing supply in a stochastic setting. International Journal of Production Economics, 115, 248-259.

World Bank (2016). Kenya Country Economic Memorandum. From Economic Growth to Jobs and Shared Prosperity. The International Bank for Reconstruction and Development, The World Bank: Washington D.C.

Xu K, Dong Y and Evers PT (2009). Towards better coordination of the supply chain. Transport Res E, 37, 35–54.




How to Cite

Kiplagat, N. K. (2024). Influence of Lead Time System on Performance of Manufacturing Firms in Kenya. Journal of Procurement & Supply Chain, 8(2), 24–35.