BlOCKCHAIN TECHNOLOGY AND SUPPLY CHAIN PERFORMANCE OF FOOD AND BEVERAGES MANUFACTURING FIRMS IN KENYA (A CASE OF NAIROBI COUNTY)

Abstract

Blockchain entails a digitalized, distributed and decentralized ledger system for splitting and storing information. Due to globalization and volatile supply chain environment blockchain technology has materialized as significant recognition and optimistic technology for the food industry. This study sought to analyze the effect of blockchain technology on supply chain performance of food and beverages manufacturing firms in Nairobi County. The effect of traceability, supply chain transparency and supply chain digitalization on supply chain performance was examined. The study was guided by Knowledge Management Theory, Technology Acceptance Model and Balance score Card. The target population was 138 senior procurement managers from manufacturing firms of food and beverages in Nairobi County. A sample of 103 respondents was established and used in the study. A self-administered semi-structured questionnaire was distributed to the target population. A total of 88 questionnaires were returned giving a response rate of 85.4%. Statistical package was used to undertake descriptive and inferential statistical analysis. Bivariate linear regression and linear multiple regression analysis were used to assess the effect of blockchain technology and supply chain performance. Model Summary, ANOVA Statistics and regression coefficients were generated and interpreted. The results indicated that traceability, supply chain transparency and supply chain digitalization have a positive and significant effect on supply chain performance of food and beverages manufacturing firms in Nairobi County when considered singly and when combined together.  The findings indicates that there are vital benefits accrued from block chain technology and conclude that it is the best strategy in global procurement as it enhances performance. The study recommends that manufacturing firms should execute blockchain technology to escalate their robust potentiality through supply chain performance.