Information Technology Integration and Performance of Motor Vehicle Supply Chains in Kenya

Abstract

The purpose of this study was to examine the link amid information technology integration in supply chains and performance of automotive companies in Kenya. The specific research objectives entailed: To investigate the dimensions of information technology integration in the Kenyan motor vehicle supply chains; to investigate the different IT technologies used in the functional areas of Kenyan motor vehicle supply chains and to determine the extent to which supply chain performance of motor vehicle companies in Kenya is affected by information technology integration. The study was guided by the diffusion of innovation theory, technology acceptance model and unified theory of acceptance and use of technology. The study applied a cross-sectional research design and targeted 340 motor vehicle dealers or companies registered with the Kenyan Motor Industry Association. 100 motor vehicle firms were randomly selected from the Kenya Association of Manufacturers list. The study used primary data that was collected using structured questionnaires. In analysing the data, the study used both descriptive and inferential analysis. Descriptive statistics used included frequencies, percentages, means and standard deviations. Inferential statistics included correlation analysis which was used to show relationships between the independent variable and the dependent variable. The study findings revealed that most respondents agreed that various dimensions of information technology had been put in place in the firms. The study further found that there were different functional areas in the Kenyan motor vehicle supply chains and the different IT technologies used in the areas of supply, product and demand. The study concluded that information technology integration positively and significantly affected supply chain performance of the motor vehicle firms in Kenya. Improving information technology integration across these firms will therefore improve performance of supply chains, which improve the overall performance of the firm. The study recommends need for organizations to have enhanced supply chain integration so as to improve supply chain performance even further and therefore have a competitive advantage over other firms. The study suggests that further research can be conducted to assess information technology integration in supply chains and performance of automotive companies outside Nairobi in Kenya.