Supply Chain Information Sharing and Performance of Commercial Banks in Kenya
Abstract
SCIS is critical in attaining optimal performance through proper planning and
coordination as well as timely and accurate decision making. It informs organizations
of market needs for example demand, and their role in meeting those needs. To
achieve the objectives of the study, collection of primary data was through selfadministered
semi structured questionnaires focusing on general information, factors
affecting SCIS of commercial banks and on the influence of SCIS on the Kenyan
commercial banks’ operational performance. The study population entailed 40
Kenyan commercial banks and the respondents were: heads of procurement and
finance, as well as head of operations. Frequency tables, mean & standard deviation
were used for the first two objectives with regression analysis applied for the third. To
reduce the variables into a manageable number and to establish the impact of the
various SCIS factors on performance, factor analysis was employed and a regression
model. The results found that integrated IT, collaboration, commitment and trust were
utilized to a great extent by commercial banks. However, top management support
practices were utilized to a moderate extent. The factors that highly influenced SCIS
included, integrated information, collaboration and SRM. The outcome of the
regression revealed that the coefficient of determination (R2), 59.7 was an effective
predictor. The model of regression was found to be significant, integrated IT, SRM,
trust, top management support and commitment were positively linked to bank
performance. But collaboration was negatively linked to bank performance. The
research recommends that commercial banks should fully support their SC partners by
engaging them in decisions and issuing incentives to encourage them to effectively
participate in supply chain roles. The study recommends more priority by TMS
through full support to their supply chain partners in terms of resources, involvement
in key decisions, information sharing and incentives. This will boost their relationship
with the supply chain partners and improve efficiency and effectiveness in the
delivery of goods and services. The study recommends that need for commercial
banks to allocate adequate finances to invest in integrated supply chain information
sharing systems. This will boost efficiency in information sharing and connectivity
among the supply chain partners resulting to reduced lead time, stock-out cost and
timely delivery. Experimental or simulations researches are recommended to ascertain
if the findings will hold. In future, scholars interested in this line of research can build
on this study and establish the contribution of SCIS using different approaches for
validation purposes, more specifically, validating the guidelines for information
sharing will enable the researchers to develop strategies to share information.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Economics [221]
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