A conceptual model for managing supply networks for simultaneous optimisation in a complex adaptive environment : a case study of the floriculture industry in Kenya

Abstract

This thesis aims at developing a conceptual model for supply networks optimization in the floriculture industry in Kenya. In the literature review a detailed account of the evolution of supply chain management, the concept and the factors influencing simultaneous optimization of supply networks in the floriculture industry is given. The area of complex adaptive systems is explored and the link with the floriculture industry in Kenya is shown. A review of current studies is done on the subject of supply chain management and particularly the various conceptual frameworks/models developed by a number of researchers around the world. The supply chain performance measurement and the requirements for model building are also given. The research methodology provides the research paradigm and research design and discusses the justification of the approach taken for the study. The target population consisted of all active cut flower exporting firms by 31st December 2009 as per the information provided by Horticultural Crops Development Authority (HCDA). This target population comprising of 412 active exporters was stratified in terms of: large, International, local, embedded, unimpeded, small and medium scale enterprises. Sampling was done through census sampling technique, in which case the entire population was considered. Data analysis is also discussed including the various tests to be carried out in relation to validity and reliability of data. There is a detailed presentation of principal factor analysis results. Finally there is a detailed discussion on the ethical considerations in the conduct of my data collection and research process. Chapter four outlined the factors that are indeed useful to be considered when designing a conceptual model for managing supply networks for simultaneous optimization. Such factors included: country development; quality of inputs; financing; customer responsiveness; research and development. Also discussed are the factors that contribute to overall organizational performance which in this case included: return on trading investment, overall operational costs, overall productivity growth rates and outsourcing activities and decisions. The triple bottom line benefits encompassing environmental vi audit, financial audit and social audit have also been discussed in relation to country specific benefits in relation to the floriculture industry in Kenya. The revised conceptual model for simultaneous optimisation of supply networks in the floriculture industry is presented consisting of: key success factors; financing; information integration; country specific benefits; transport; research and development. These are the factors which contribute to enhancing performance of the floriculture industry in Kenya. The conclusion and recommendations of the study are made on the basis of these factors.