Influence of Supply Chain Technological Integration on the Performance of Formal Manufacturing Firms in Mombasa County, Kenya

Authors

DOI:

https://doi.org/10.51867/ajernet.5.2.46

Keywords:

Innovation Diffusion Theory, Supply Chain Technological Integration, Technological Integration

Abstract

Technological integration within the supply chain has emerged as a pivotal determinant for the growth and competitiveness of manufacturing companies amidst the rapidly evolving business landscape. However, in Kenya, numerous firms encounter challenges in embracing and assimilating the latest technological advancements into their supply chain operations. This study aimed to assess the impact of supply chain technological integration on the performance of formal manufacturing firms in Mombasa County. Grounded on the Innovation Diffusion Theory, the research targeted 50 general procurement managers, 100 warehouse managers, and 100 general operation managers across 50 manufacturing enterprises. Utilizing the Yamane formula, a sample size of 152 respondents was determined, and data was collected through questionnaires. Statistical analysis was conducted using SPSS. The findings show that by enhancing operational efficacy and efficiency, the integration of supply chain technology significantly enhances overall business performance. Consequently, the study concludes that supply chain technological integration plays a positive role in influencing firm performance among formal manufacturing enterprises in Mombasa County. To optimize performance, it is recommended that firms invest in robust and reliable technologies. Furthermore, there is a need for additional research to explore the impact of supply chain technological integration on firm performance across diverse industries and regions within Kenya.

References

Akhmedov, R. (2017). Implementation of CRM strategies to increase customer loyalty: Case of Kazakhstan companies. Nile Journal of Business and Economics, 3(6), 33. https://doi.org/10.20321/nilejbe.v3i6.94 DOI: https://doi.org/10.20321/nilejbe.v3i6.94

Aslam, H., Blome, C., Roscoe, S., & Azhar, T. M. (2018). Dynamic supply chain capabilities: How market sensing, supply chain agility and adaptability affect supply chain ambidexterity. International Journal of Operations & Production Management, 38(12), 2266-2285. https://doi.org/10.1108/IJOPM-09-2017-0555 DOI: https://doi.org/10.1108/IJOPM-09-2017-0555

Chirchir, K. M. (2023). Supply chain integration, competitive advantage, environmental dynamism and performance of large-scale manufacturing firms in Kenya. Journal of Service Science and Management, 16(3), 304-329. https://doi.org/10.4236/jssm.2023.163018 DOI: https://doi.org/10.4236/jssm.2023.163018

Chryssolouris, G. (2019). Automation in manufacturing. CRC Press.

Dibra, M. (2015). Rogers theory on diffusion of innovation: The most appropriate theoretical model in the study of factors influencing the integration of sustainability in tourism businesses. Procedia - Social and Behavioral Sciences, 195, 1453-1462.

https://doi.org/10.1016/j.sbspro.2015.06.443 DOI: https://doi.org/10.1016/j.sbspro.2015.06.443

Ferdows. (2019). The impact of supply chain integration on firm performance: A review and synthesis. Journal of Operations Management, 49(1-2), 41-58.

García-Avilés, J. (2020). Diffusion of innovation. In The International Encyclopedia of Media Psychology (pp. 1-8). John Wiley & Sons.

https://doi.org/10.1002/9781119011071.iemp0137 DOI: https://doi.org/10.1002/9781119011071.iemp0137

Guo, X., Zhang, M., & Zhao, X. (2021). The impact of supply chain integration on customer performance: A configurational perspective. Industrial Marketing Management, 93, 87-97.

Gupta, M. (2023). Navigating the digital landscape: Models of technology adoption and information system success. Taran Publication.

Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4), 369-384. https://doi.org/10.1108/SCM-03-2013-0096 DOI: https://doi.org/10.1108/SCM-03-2013-0096

Johnson, P. F. (2021). Supply chain integration and its impact on firm performance: A comprehensive review. Journal of Operations Management, 42(5-6), 516-532.

Kim, W., & Kwak, K. (2015). Effect of service integration strategy on industrial firm performance. Journal of Service Management, 27. https://doi.org/10.1108/JOSM-03-2014-0088 DOI: https://doi.org/10.1108/JOSM-03-2014-0088

Koh, S. C., Ganesh, K., Pratik, V., & S.P., A. (2014). Impact of ERP implementation on supply chain performance. International Journal of Productivity and Quality Management, 14, 196. https://doi.org/10.1504/IJPQM.2014.064476 DOI: https://doi.org/10.1504/IJPQM.2014.064476

Mobarak, M. H., Islam, M. A., Hossain, N., Al Mahmud, M. Z., Rayhan, M. T., Nishi, N. J., & Chowdhury, M. A. (2023). Recent advances of additive manufacturing in implant fabrication - A review. Applied Surface Science Advances, 18, 100462. https://doi.org/10.1016/j.apsadv.2023.100462 DOI: https://doi.org/10.1016/j.apsadv.2023.100462

Muchangi, D., Muathe, S., & Waithaka, S. (2018). Effect of mobile communication services on performance of Saccos in Kenya. European Scientific Journal, 14. https://doi.org/10.19044/esj.2018.v14n30p46 DOI: https://doi.org/10.19044/esj.2018.v14n30p46

Niu, Y., Ying, L., Yang, J., Bao, M., & Sivaparthipan, C. B. (2021). Organizational business intelligence and decision making using big data analytics. Information Processing & Management, 58(6), 102725. https://doi.org/10.1016/j.ipm.2021.102725 DOI: https://doi.org/10.1016/j.ipm.2021.102725

Patil, P., & Pimpale, D. (2024). The role of technology in enhancing supply chain integration and organizational performance, 5(2), 5770-5795.

Salah, A., Çağlar, D., & Zoubi, K. (2023). The impact of production and operations management practices in improving organizational performance: The mediating role of supply chain integration. Sustainability, 15, 15140. https://doi.org/10.3390/su152015140 DOI: https://doi.org/10.3390/su152015140

Setia, M. S. (2016). Methodology series module 3: Cross-sectional studies. Indian Journal of Dermatology, 61(3), 261-264. https://doi.org/10.4103/0019-5154.182410 DOI: https://doi.org/10.4103/0019-5154.182410

Singh, A. S., & Masuku, M. (2014). Sampling techniques & determination of sample size in applied statistics research: An overview. International Journal of Economics, Commerce and Management, 2(11), 1-22. http://ijecm.co.uk/

Smadi, Z., & Smadi, A. (2016). The operational benefits of enterprise resource planning (ERP): A case study on food processing and manufacturing companies in Jordan. International Journal of Business and Social Science, 7(2).

Sony, M. (2019). Implementing sustainable operational excellence in organizations: An integrative viewpoint. Production & Manufacturing Research, 7(1), 67-87. https://doi.org/10.1080/21693277.2019.1581674 DOI: https://doi.org/10.1080/21693277.2019.1581674

Downloads

Published

2024-05-28

How to Cite

Omar, F. F., Egessa, M., & Ndolo, J. (2024). Influence of Supply Chain Technological Integration on the Performance of Formal Manufacturing Firms in Mombasa County, Kenya. African Journal of Empirical Research, 5(2), 542–549. https://doi.org/10.51867/ajernet.5.2.46