Leagile Strategy and Performance of Heavy Construction Equipment Suppliers in Kenya: Case of Earthmoving and Site Services Limited (ESS)

Abstract

Heavy construction equipment suppliers play a pivotal role in infrastructural development, especially in emerging economies like Kenya. However, this sector faces unique challenges arising from dynamic market demands, supply chain disruptions, rising operational costs, and global economic volatility leading to a decline with market share and operational efficiency. As such, the purpose of this study was to evaluate the effect of leagile strategy on the performance of heavy construction equipment suppliers in Kenya. The specific objectives of the study were to; examine the effect of supply chain decoupling on performance of ESS Ltd., assess the effect of lean practices on performance of ESS Ltd., establish the effect of agile responsiveness on the performance of ESS Ltd and evaluate the moderating effect of organizational factors on the relationship between leagile strategy and performance of ESS Ltd. The study was anchored on the Contingency Theory, Strategic Alignment Theory, Resource-Based View and Institutional Theory. This study employed a cross-sectional explanatory research design. The study target population was 96 senior and mid-level managers at ESS Ltd. The findings if this study showed that supply chain decoupling significantly influenced performance (p=0.002, p<0.05), highlighting its role in enhancing responsiveness and delivery reliability. Lean practices were found to be a stronger predictor (p=0.00, p<0.05), demonstrating the importance of waste reduction, Just-In-Time systems, and supplier collaboration. Agile responsiveness emerged as the most influential factor (p=0.00, p<0.05), underscoring the significance of flexibility and rapid adaptation in driving competitiveness. Organizational factors were positively rated (M=4.25, SD=1.00) and directly affected performance (β=0.305, p=0.00), though their moderating effect was not statistically insignificant (p>0.05). The findings align with the Sustainable Development Goals (SDGs 8, 9, and 12) by promoting inclusive industrial growth, innovation, and sustainable supply chain practices. They also support Kenya Vision 2030, particularly in advancing manufacturing efficiency and infrastructure development, while contributing to Africa’s Vision 2050, which emphasizes industrial transformation, regional integration, and resilience in supply chains. The study concludes that lean and agile strategies are the most critical drivers of performance, while leadership and culture act as direct enablers. Recommendations are provided for managers, policymakers, and organizational leaders, and areas for further research are suggested, including cross-sector replication and digital transformation integration.