The impact of supply integration on the supply chain performance in the manufacturing firms in Kenya
Abstract
Nowadays business environment is characterized by faster technological development,
shorter product life cycle and more intense global competition. This new competitive
landscape force organizations to actively acquire new ways to achieve competitive
advantage since a firm’s competitive advantage is now more dependent on operating
efficiency and productivity across functional areas of the organization. The most
successful manufacturers seem to be those that have carefully linked their internal
processes to external suppliers and customers in unique supply chains. Manufacturing
accounts for 13% of gross domestic product (GDP) of Kenya’s industrial sector. The aim
of this study was to investigate impact of supply integration on the supply chain
performance in the manufacturing firms in Kenya. The target population of this study
was 549 manufacturing firms registered with Kenya Association of Manufacturers
(KAM) and operating in Nairobi. This study employed descriptive research design. The
study relied mostly on primary data sources. The study generated both qualitative and
quantitative data where quantitative data was coded and entered into Statistical Packages
for Social Scientists (SPSS Version 17.0) and analyzed using descriptive statistics. Forty
nine (49) out of the 60 respondents targeted completed the questionnaires making a
response rate of 82%. The study concluded that organizations encourage information
sharing such as marketing information, production information and technological
information. Reducing total cycle time, acquisition of new ideas for products and
reducing total logistics costs influence supply chain performance. Purchasing department
plays a key role in fostering relationships and communication to improve quality
performance for both the supplying and the buying firm. The study found that the
organizations have realized significant supply chain coordination through supply chain
integration. Through supply chain integration organizations have been able to attain of
strategic goals, reduce risks and improve internal and external coordination of operation
process.
Citation
Masters of Business AdministrationPublisher
University of Nairobi