Influence of Digital Transformation on Supply Chain Performance of Absa Bank Plc in Kenya

Abstract

The research set out to accomplish two main goals: first, to quantify the level of digital transformation technology adoption by Absa Bank in Kenya; and second, to identify the connections between digital transformation and the efficiency of Absa Bank's supply chain. In this research, the Technology Acceptance Model served as the foundation. Nine of Absa Bank's locations in the CBD were the sites of the research. Organised and semi-structured questionnaires were the main tools for data collection in this study. The data that was validated for correctness was written and entered using the Statistical Programme for the Social Sciences (SSPS) version 21. We used both qualitative and quantitative methods to examine the data because we thought they would provide complementary insights. Analyses of variance and regression, in addition to central tendency measures like deviation and mean, were used to display the data and establish the significance of the correlations between the elements. According to the results, ABSA Bank has started using digital tools and technology to manage their supply chain. In terms of how digitally transformed ABSA Bank PLC's supply chain processes seem, it's rather extensive. When asked about the effects of digital transformation on supply chain efficiency, most respondents strongly agreed with the claims made. Respondents of the survey also agreed that the following variables had a significant impact on digital technologies used by ABSA Bank PLC's supply chain. A large majority of respondents agreed with assertions made about the difficulties of digital transformation in the supply chain of ABSA Bank PLC. Research also showed that the coefficients were positive, which indicates that the independent factors had a positive effect on the dependent variable. The study has established the extent of adoption of digital transformation technologies is to a great extent as the bank has adopted Enterprise Resource Planning (ERP) systems, Customer Relationship Management (CRM) systems, Inventory Management software, Supply Chain Analytics, E-commerce platforms, Block-chain technology, Internet of Things (IoT) devices, Robotic Process Automation (RPA) and Artificial Intelligence (AI); the adoption of technology by the bank and has enhanced the performance of the supply chain in; domain transformation, process transformation, cultural transformation and the business model transformation and the study has also established that a unit increases in the scores of digital transformations would lead to an increase in the scores of supply chain performance of Absa Bank in Kenya. The study recommends that there has been resistance to change by ABSA bank employees thus hampering the successful implementation of digital transformation initiatives in the bank's supply chain; there is need to improve on data security and privacy in the digitalized supply chain which was also pointed as a major challenge for ABSA Bank PLC and the study also recommends that ABSA Bank PLC management to align the digital transformation strategies with the overall business objectives to enhance performance of the supply chain.