SUPPLY CHAIN INTEGRATION AND PERFORMANCE OF LARGE MANUFACTURING FIRMS IN KENYA

Abstract

Intense competitive pressures have forced firms to go beyond their neighbourhoods to achieve competitive advantage. A feasible course of action for firms is embracing supply chain integration. However, there is concern as to whether implementing integration of supply chain leads to enhanced firm performance. Hence, the major aim of this research was to investigate the link connecting supply chain integration implementation and performance of large manufacturing firms in Kenya. In particular, the study examined the link connecting
supply chain integration to firm performance. A cross-sectional descriptive research design was applied with primary data. From a sample size of 200 firms, 94 questionnaires were obtained to be usable resulting in a response proportion of 47%. The main data analysis method was partial least squares structural equation modelling (PLS-SEM). The study's findings show that supply chain integration significantly and positively affects organizational performance. The study confirms that supply chain integration can improve the performance of manufacturing firms in Kenya. This contributes to resolving the question of whether supply chain operations integration is beneficial for organizations. The study's conclusions are anticipated to give researchers guidance on the potential effects of supply chain integration deployment on organizational performance. This is particularly pertinent in the context of the developing world where such studies are scarce.

Key words: supply chain integration, firm performance, PLS-SEM