Abstract
The purpose of the research is to examine the effect of information technology integration on the operational performance of the of Kenya’s public health sector level five hospitals in Kenya. The study examined the moderating role of public procurement to the relationship between information technology integration and operational performance. To test the extent of information technology integration and relationship with the operational performance of level five hospitals in Kenya was empirically tested utilizing a causal, non-experimental, and cross-sectional research design. Regression analysis was carried out based on data from 164 respondents. In general, the study results support the idea that information technology integration has a significant effect on operational performance (β1=0.411, p <0.05) with R2 of 0.449 implying that 44.9% of the variation of operational performance is attributed to information technology integration. Information technology integration is vital in coordinating the SCI dimensions leading to the improved operational performance of the health facilities. It finds that public procurement mediates the relationship between information technology integration and operational performance of the health sector as it is an enabler of improved working relationships with the suppliers.
Highlights
Supply chain integration (SCI) though a modern concept has resulted in performance improvement in countries such as Australia, United Kingdom, France, Canada, United States of America and more recently Malaysia among others (Anjum, Kashif & Riaz, 2016)
The findings show that information technology integration significantly influenced operational performance
The study showed that the variations of operational performance explained by information technology (IT) Integration increased from 42.8% to 44.9% when the moderating variable was introduced in the model
Summary
Chain integration (SCI) though a modern concept has resulted in performance improvement in countries such as Australia, United Kingdom, France, Canada, United States of America and more recently Malaysia among others (Anjum, Kashif & Riaz, 2016). Most firms have embraced SCI by only performing what they do best based on the organizations' core competencies and partnering with other firms to provide other resources not available internally to create value for the customers (Flynn, Huo, & Zhao, 2010: Zhao, Huo, Selen, & Yeung, 2011). One of the documented benefits accruing to the organization in SCI context is a performance improvement, efficient operations, satisfied customers (Sammuel & Kashif, 2013). The recent advancement in information technology (IT) has enabled organizations to collaborate with various partners in the supply chain resulting in significant cost savings, visibility, dynamism and flexibility (Paulraj, Chen, & Chung, 2006). The health sector is unique compared to other sectors because it is characterized by sophisticated technologies as well as a varied group of stakeholders and a dynamic environment making it difficult to transfer some of the best practices in SCI available to the manufacturing or retail sectors to the healthcare sector (De Vries, & Huijsman, 2011)
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