INFLUENCE OF DIGITAL SUPPLY CHAIN MANAGEMENT SYSTEM ON COMPETITIVE ADVANTAGE OF BUILDING ACCESSORIES MANUFACTURING FIRMS IN KENYA MODERATING EFFECTS OF FIRM SIZE

Abstract

The building accessories manufacturing sector contributes significantly to Kenya’s economy through employment creation and support for infrastructural development. However, the sector grapples with high production costs, intense competition from imports, and limited technological integration. This study examined the influence of digital supply chain management system (DSCMS) on competitive advantage among building accessories manufacturing firms in Kenya, with firm size as a moderating variable. Adopting a positivist philosophy and an ex-post facto research design, primary data were collected from 104 key informants in 24 firms using structured questionnaires and semi-structured interviews with CEOs, achieving an 87% response rate. Quantitative data were analysed using descriptive statistics, Chi-square tests of association, and binary logistic regression (with interaction terms for moderation) in SPSS Version 27, while qualitative data underwent thematic analysis. Results revealed a significant positive association between adequate DSCMS and competitive advantage (β = 1.386, SE = 0.620, Wald = 5.000, p = 0.015, OR = 4.000). Firm size significantly moderated this relationship (interaction β = 1.609, SE = 0.632, Wald = 6.476, p = 0.011, OR = 5.000), with larger firms deriving greater benefits. Descriptive findings indicated moderate adoption of visibility, tracking, and automation elements alongside notable gaps in overall system utilization and staff training. The study concludes that DSCMS is a key driver of competitive advantage in this sector, with its impact amplified by firm scale. It recommends size-tailored investments in DSCMS technologies, continuous workforce training, and policy support through differentiated incentives to promote inclusive digital transformation and long-term sector sustainability.