The Effect of Supply Chain Digitalization on Internal Supply Chain Integration of Cement Manufacturing and Distribution Firms in Ghana

Abstract

Purpose: The purpose of this study is to assess the effect of supply chain (SC) digitalization on the internal supply chain integration of firms with a focus on cement manufacturing and distribution firms in Ghana.
 Design/Methodology/Approach: The study adopted the cross-sectional quantitative research design from 114 key players and administrative staff of cement manufacturers and distributors in Ghana using a purposive sampling technique and the use of a questionnaire for gathering the data.
 Findings: The findings revealed a positive, moderate relationship between the drivers of SC digitization and internal SC integration; a negative, moderate relationship between the challenges of SC digitization and internal SC integration; a positive, strong correlation between the extent of SC digitization and internal SC integration. All the relationships were significant. Also, the drivers and inhibitors of SC digitisation revealed both positive and negative associations with the extent of SC integration.
 Research Limitation: The selected firms are not fully representing the entire population of cement manufacturing and distribution firms in Ghana, which impact on the external validity of the findings.
 Practical Implications: The results will help increase the performance of cement production firms and improve its SC integration. Firms invest resources in the digitalization of its SC to further improve internal SC integration.
 Originality/Value: The study examines the relationship between supply chain digitalization and internal supply chain integration. While digitalization has been widely studied in supply chain management, the specific focus on how it impacts internal supply chain integration in the context of cement manufacturing and distribution firms in Ghana is relatively novel.