TITLE:
Financial Supply Chain Management Practices and Operational Performance in the Low-Cost Airline Firms in Kenya
AUTHORS:
Emily Askah, Ombati Ogoro Thomas
KEYWORDS:
Financial Supply Chain Management, Operational Performance, Low-Cost Airlines
JOURNAL NAME:
Journal of Service Science and Management,
Vol.15 No.3,
June
30,
2022
ABSTRACT: Globally, airlines face unique challenges which
require measures to achieve competitive advantage. The paper’s aim was to
ascertain the level of adoption of Financial Supply Chain Management (FSCM)
practices among Kenya’s low-cost airline companies. A descriptive research
approach was used in this paper. This approach allows researchers to obtain
accurate and systemic primary data from several low-cost airline companies in a
set period of time. The target population for the study was 33 low-cost
airlines operating in Kenya. The researchers gathered information through
primary and secondary sources. The paper indicates that organizational success
is positively influenced by Financial supply chain management. This, therefore, requires the supply chain
and finance executives to make significant investments in FSCM in order to
improve organizational performance. The study recommends that low-cost airlines
must maintain an optimum working capital, cash conversion period, capital expenditure
policies, and P2P cycles as well as to conduct regular demand and supply
analyses as FSCM strategies so as to enhance operational performance and
increase business competitiveness in the aviation industry.