Business integration and supply chain performance among commercial banks in Kenya

Abstract

A study was conducted to establish the relationship b etween business integration and supply chain performance among commercial banks in Kenya. The study had two objectives to achieve: to establish the extent to which commercial banks have integrated their business functions and to find the relationship betwe en business integration and supply chain performance. The research design involved a cross sectional survey of all commercial banks in Kenya. Data was collected using a questionnaire that was administered through drop and pick later method. Percentages and frequencies were used to analyze objective one whereas regression analysis was used to analyze the relationship between business integration and supply chain performance. The findings were presented in tables and pie charts. The study established that mos t of the commercial banks in Kenya integrated their business functions ten years ago. It was also clear that there was a very significant relationship between business integration and supply chain performance represented by R 2 value of 0.789 which translat es to 78.9% variance explained by the four independent variables of information sharing improves supply chain performance; on time supply chain decisions; better supplier relationship management and efficiency in supply chain management. Further research o n the same study can be done in other countries to establish whether business integration is able to yield the same effect on supply chain performance of commercial banks.It has also been recommended that all banks and other organizations should be advised to embrace business integration so that they can reap the benefits.Business integration relies on ERP system as the primary integration too.IT is very dynamic and keeps on changing hence need to replicate the study in line with trends that may affect supp ly chain performance in commercial banks