The Impact of Trading Counterfeited Vehicle Spare Parts across the Local Supply Chain

Abstract

The influx of counterfeit vehicle spare parts in the local supply chains has reached an alarming rate, with vehicle owners often being victim to dubious traders who sell them contrabands under the guise that the spare parts are indeed genuine. In order to exhaust the magnitude of the problem, the study aimed at identifying the factors driving suppliers/dealers and consumers to trade counterfeited vehicle spare parts across the supply chain and examining the effects of trading counterfeited vehicle spare parts on the supply chain. A survey research design was employed to conduct the study which allowed the collection of adequate data from a sizeable population in a highly economical way. Multiple approaches including questionnaire, interviews and documentary review were used to gather both primary and secondary data which enabled researchers to do triangulation. Findings revealed that suppliers and customers trade counterfeited vehicle parts for a number of reasons including price affordability and inadequate awareness. This has resulted to various effects to the participant in the local supply chain such as accidents, high replacement costs and damaged reputation. Key words: Counterfeited products, Vehicle parts and Supply chain