EFFECT OF STRATEGIC SUPPLIERS PARTNERSHIP ON FIRMS PERFORMANCE IN DAIRY PROCESSING FIRMS IN KADUNA: THE ROLE OF DEMAND UNCERTAINTY

Abstract

In the current globalized and competitive business environment, companies need to
consistently improve their operational processes to maintain performance and drive growth.
The thrust of this study was to examine the effect of strategic suppliers’ partnership on firms’
performance: the role of demand uncertainties in the dairy processing firms in Kaduna and
Zaria. The research design used was the survey research where self-administered
questionnaires were distributed to 201 respondents who constitute the population at the same
time the sample size. Smart PLS 4 was used to test the hypotheses. The findings revealed that,
there is a strong positive relationship between strategic suppliers' partnership on firm
performance, given (H01: β = 0.536, t = 11.653, p < 0.001). Also, the interaction effect of
demand uncertainty on the relationship between strategic suppliers' partnership and firm
performance is both negative and significant (β = -0.198, t = 2.911, p < 0.005). This study
investigates the effect of demand uncertainty on the relationship between strategic supplier
partnerships and firm performance, specifically in dairy processing firms located in Kaduna
and Zaria. The research highlights how demand uncertainty can moderate this relationship,
potentially altering the effectiveness of supplier partnerships in enhancing firm performance.
The study recommends that, management of the dairy firms should sustain a harmonious
strategic relationship with their suppliers to be on top of the game. Similarly, the negative
interaction implies that higher levels of demand uncertainty weaken the positive effect of
strategic suppliers' partnership on firm performance. This suggests that, management should
manage supply chain relationships, especially in uncertain market conditions, to maintain
optimal firm performance.