Effects of supply chain integration on performance of public Health Supply Chains: A Kenyan Perspective

Abstract

Research has accumulated a stock of knowledge on the importance of supply chain integration (SCI), but little is known about its worth in public health supply chains. For over a decade now the Kenyan government has considerably increased funding to the Kenya Medical Supplies Authority (KEMSA) but logistical shortcomings and weak links in the health supply chain have greatly hampered the performance of the health supply chain. This study sought to establish the relationship between SCI and organizational performance of public health supply chains using the case of 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. Stratified random sampling technique was used to obtain the sample size of ninety three (93) respondents from various departments of the organization. Primary data was collected through research questionnaire whereas secondary data was obtained from the company’s website and from the ministry of public health. 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 overall supply chain integration dimensions have positive and statistically significant effect on organizational performance. This study contributes to theory and practice by establishing that Process based-management, stakeholder theory and transaction cost theory are elaborate in describing supply chain integration from an organization point of view. The study also makes contribution to public management practice by establishing that supplier integration, internal integration and customer integration complements organizational performance.