The Influence of Management Information System capabilities on the supply chain performance of listed manufacturing firms in Kenya

Wandili,  Modestar

The Influence of Management Information System capabilities on the supply chain performance of listed manufacturing firms in Kenya

Date

2022

Authors

Wandili, Modestar

Publisher

Strathmore University

Abstract

Changes in customer expectations and technology advancements have increased the need for a digital and integrated supply chain. The use of Information Systems (IS) in global supply chains allows manufacturing organizations to have better control over material and information flows across the supply chain. Scholars have examined the impact of Information Systems on supply chain management of organizations. However, there are mixed findings regarding this topic. As a result, this study sought to establish the influence of Information Systems (IS) on the supply chain performance of manufacturing firms in Kenya. This study entails a theoretical review of literature which will help discuss the primary models and frameworks supporting the study. The study was anchored on the TOE framework and the Collaborative Network Theory. The study adopted a positivist research philosophy. A descriptive cross-sectional survey design was used for this research. This research involved collection of primary data through the administration of structured questionnaires. The study targeted 26 manufacturing firms that are listed in the Nairobi Securities Exchange (NSE) as of 2021. The sample size for this study was 156 respondents (6 employees from the IT and procurement departments in each manufacturing organization). A response rate of 70% was achieved. The study utilized google forms and the drop and pick method to avail questionnaires to the respondents. SPSS v28 facilitated data analysis. Moreover, data was presented using bar graphs, charts, and tables. Descriptive and inferential statistics were used to draw conclusions from the analyzed data. Data collected from the respondents was analyzed using descriptive statistics, regression, and correlation analysis. The results show that most manufacturing organizations have integrated Information Systems to support their manufacturing operations. Correlation analysis results indicate that information systems infrastructure, human resource capabilities and information systems integration capabilities have a significant association with supply chain performance. Regression analysis results indicate that IS infrastructure, integration capabilities and human resource capabilities have a significant influence on supply chain performance. The study recommends that firms could assess their employees’ IT skills to ensure that they are at par with rapidly evolving technologies. This will aid in establishing a baseline from which employee training and development could lead to desired results. The study also recommends that manufacturing organizations should ensure that IS capabilities are aligned with their manufacturing operations to achieve efficiency. Further, the study recommends that management should ensure interoperability of information systems to facilitate collaborative decision-making with other supply chain partners. The study however was limited by the COVID-19 pandemic which largely hindered efficient collection of the data for this study. Financial and time constraints also limited the researcher’s ability to meet face to face with respondents in distant geographical locations hence may have hindered effective completion of some of the questionnaires. Future researchers could focus on the influence of IS capabilities on the supply chain performance of other participants in the supply chain like the suppliers. Future studies could also focus on other dimensions of IS capabilities and how they influence supply chain performance.