Supply chain integration and organizational performance of commercial banks in Kenya
Abstract
The world economy continues to be globalized and firms are exploring ways to survive in
a competitive world. One of the ways to survive this intense competition is to have an
efficient supply chain. The level of uncertainty in the business environment also
continues to increase and one of the greatest challenges to a firm is responding to
uncertainty, caused by a highly volatile demand and short product life cycle.
Implementation of strategic integration in a firms supply chain has been advocated as one
of the means of increasing competitiveness of a firm. The objective of this study is to
determine the effect of supply chain integration on organizational performance of
commercial banks in Kenya. The study adopted a cross sectional research design. The
population of the study were all the 42 commercial banks currently operating in Kenya.
The study used primary data which was collected using a questionnaire. The data was
analyzed using the Statistical Package for Social Sciences (SPSS) software and presented
using tables and figures. Regression analysis was used to find out the relationship
between the demographics and use of integration in the supply chain by the banks, supply
chain integration and organizational performance. The study found out that reverse
logistics, knowledge management, top management support, information technology
adoption, customer orientation and customer service affect performance of commercial
banks. The study recommends that management in commercial banks should embark on
information sharing so as to respond to customer requirement, enhance the product
availability, and efficiently coordinate processes in order to lower the costs, offer better
customer service, improve revenues, and have properly guided capacity plans. The study
recommends that a further study should be carried out to establish ways through which
public institutions could enhance supply chain integration so as to improve their
performance and service to the public. A further study should be carried out to establish
the challenges of integrating supply chain in public institutions and consequently how
this impacts on their performance and service delivery in the public sector.
Publisher
University of Nairobi