Abstract
This research objective is to determine the effect of the Supply Chain Integration dimensions on the operational performance of the of Kenya’s public health sector level five hospitals. The results are based on close-ended questionnaires from one hundred and sixty-four respondents working in the level five health facilities supply chain selected using simple random sampling. The data collected was subjected to completeness checks, before it was cleaned, coded, and analyzed using Statistical Package for Social Scientists (SPSS) for the generation of both descriptive and inferential statistics. The results show that Supplier integration (β1, = 0.276; p value=0.000), customer integration (β2, = 0.119; p value=0.016) and internal integration (β3, = 0.232; p value=0.000) have a significant effect on operational performance. The R2was 0.429, indicating that 42.9% of the variation in operational performance is explicated by the variation of Supply chain integration dimensions. This implies that all three supply chain integration dimensions significantly influence operational performance. The study concludes that the government needs to internally integrate and embrace forward and backward integration with the customers and suppliers to leap the full benefits of an integrated health sector to accomplish the universal health care goals.
Highlights
Chain integration (SCI) is a fundamental principle, which, signifies a departure from the traditional functional processes which were operated as silos to integrated business processes both internally and externally (Childerhouse & Towill 2011)
The findings show that supplier integration, customer integration, and internal integration significantly influenced operational performance
The study concluded that health facilities recognize the imperativeness of internal integration, but few have embedded this critical aspect of Supply chain integration (SCI) in their operations
Summary
Chain integration (SCI) is a fundamental principle, which, signifies a departure from the traditional functional processes which were operated as silos to integrated business processes both internally and externally (Childerhouse & Towill 2011). This entails the firm performing what they do best based on the organization's core competencies and partnering with other firms to provide other resources not available internally to create value for the customers. A better understanding of the concept of SCI dimensions and its implications has an impact on both the practice and academic importance which will lead to concrete theory-building in SCI as there is no convergence on the theory to use when it comes to research between SCI dimensions and performance. The lack of convergence is associated with lack of clear definitions of SCI and its dimensions
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