Supply Chain Integration And Organizational Performance Of Kenya Medical Supplies Authority

Abstract

Research has accumulated a stock of knowledge on the importance of supply chain integration (SCI), but little is known on its worth in public health supply chains. For over a decade now, the Kenya government has considerably increased funding to the Kenya Medical Supplies Authority (KEMSA) but logistical shortcomings and weak links continue to hamper the performance of this health supply chain. This has had serious consequences on the quality of human health care. But that notwithstanding, research has hardly been carried out to assess the influence of supply chain integration on organizational performance in public health supply chains. This study sought to establish the relationship between of supply chain integration and organizational performance KEMSA. Specifically, the study examined the effect of supplier integration, internal integration, customer integration and information integration on organizational performance. The study was anchored on Process-Based Management Theory, Network Theory, Stakeholder Theory and Transaction Cost Theory and the SCOR reference model. The study employed cross section research design and targeted a population of one hundred and twenty three (123) respondents within the management and supervisory level of the organization. Stratified random sampling technique was used to obtain the sample size of ninety three (93) respondents. Primary data was collected through administering a research questionnaire whereas secondary data was obtained from the company’s website and from the ministry of public health. Data was analysed through descriptive statistics, correlation and multiple regression. Findings from the research revealed that supplier integration, internal integration and customer integration have a positive and statistically significant effect on organizational performance. Information integration was found not to have significant influence on organizational performance. Results also showed that the effect of the combined supply chain integration dimensions have positive and statistically significant effect on organizational performance. The combined influence of supply chain integration dimensions was also found to be greater than their individual influence. This study contributes to theory by establishing that Process based-management, stakeholder’s and transaction cost theory are elaborate in describing supply chain integration from an organization view point. The study also makes contribution to public management practice by establishing that supplier integration, internal integration and customer integration complements organizational performance. The study recommends for enhanced use of supplier, internal, and customer integration as strategic policies of improving organizational performance in public health supply chains.