Supply chain integration and operational performance of Kenya’s public health sector

  • Anne Mbugua United States International University Africa,
  • Juliana Namada United States International University - Africa
Keywords: Supply Chain Integration, Internal Integration, Supplier Integration, Customer Integration, Operational Performance, Kenya


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.

Author Biography

Juliana Namada, United States International University - Africa

Associate Professor of Economics, United States International University - Africa


Aidemark, L. G., & Funck, E. K. (2009). Measurement and health care management. Financial Accountability & Management, 25(2), 253-276.

Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. The American economic review, 62(5), 777-795.

Alfalla-Luque, R., Medina-Lopez, C., & Dey, P. K. (2013). Supply chain integration framework using a literature review. Production Planning & Control, 24(8-9), 800-817.

Afshan, N. (2013). The performance outcomes of dimensions of supply chain integration: A conceptual framework. Business: Theory and Practice/Verslas: Teorija ir Praktika, 14(4), 323-331.

Ataseven, C., & Nair, A. (2017). Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature. International Journal of Production Economics, 185, 252-265.

Baiman, S., & Rajan, M. V. (2002). Incentive issues in inter-firm relationships. Accounting, Organizations, and Society, 27(3), 213-238.

Barney, J. B. (2012). Purchasing, supply chain management, and sustained competitive advantage: The relevance of resource‐based theory. Journal of supply chain management, 48(2), 3-6

Cao, Z., Huo, B., Li, Y., & Zhao, X. (2015). The impact of organizational culture on supply chain integration: a contingency and configuration approach. Supply Chain Management: An International Journal, 20(1), 24-41.

Chatzoudes, D., & Chatzoglou, P. (2011). The Impact of 3600 Supply Chain Integration on Operational and Business Performance. Operations and Supply Chain Management, 4(2/3), 145-156.

Childerhouse, P., & Towill, D. R. (2011). Arcs of supply chain integration. International journal of production research, 49(24), 7441-7468.

Danese, P., 2013, Supplier integration and company performance: A configurational view: Omega-International Journal of Management Science, v. 41, p. 1029-1041

Danese, P., & Bortolotti, T. (2014). Supply chain integration patterns and operational performance: a plant-level survey-based analysis. International Journal of Production Research, 52(23), 7062-7083.

Ding, Yi (2016) From supply chain integration to operational performance: the moderating effect of demand uncertainty. Ph.D. thesis, University of Warwick.

Droge, C., Vickery, S. K., & Jacobs, M. A. (2012). Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study. International Journal of Production Economics, 137(2), 250-262.

Ebrahimi, S. M. (2015). Examining the impact of supply chain integration on organization structure and operational performance in oil and gas supply chains: A contingency approach (Doctoral dissertation, University of Sheffield).

Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: a contingency and configuration approach. Journal of operations management, 28(1), 58-71.

Gimenez, C., van der Vaart, T., & Pieter van Donk, D. (2012). Supply chain integration and performance: the moderating effect of supply complexity. International Journal of Operations & Production Management, 32(5), 583-610.

Gori, C., Baldini, M., & Ciani, C. (2011). Performance measurement for health system improvement experiences, challenges, and prospects. Health Aff, 30, 590-595.

Gunasekaran, A., & Kobu, B. (2007). Performance measures and metrics in logistics and supply chain management: a review of recent literature (1995–2004) for research and applications. International journal of production research, 45(12), 2819-2840

Heizer, J.H., Render, B. and Weiss, H.J. (2008), Principles of Operations Management, Pearson Prentice Hall, PA

Hemstrom, S. C. (2014). Customer integration and operational performance: the influence of learning mechanisms in third party logistics, ((Doctoral dissertation, Macquarie University)

Hong, Y., & Zhong-Hua, Y. (2013). Supply chain dynamic performance measurement based on BSC and SVM. International Journal of Computer Science Issues (IJCSI), 10(1), 271.

Horn, P., Scheffler, P., & Schiele, H. (2014). Internal integration as a pre-condition for external integration in global sourcing: a social capital perspective. International Journal of Production Economics, 153, 54-65.

Jensen, M. C., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of financial economics, 3(4), 305-360.

Kaplan, R. S., & Norton, D. P. (2001). Transforming the balanced scorecard from performance measurement to strategic management: Part I. Accounting Horizons, 15(1), 87-104.

Kim, S. W. (2009). An investigation on the direct and indirect effect of supply chain integration on firm performance. International Journal of Production Economics, 119(2), 328-346.

Kinya, G. (2016). Supply chain integration strategies and operational performance of the treasury in Kenya (MBA, University of Nairobi).

Kothari, C., & Garg, G. (2014). Research Methodology: Methods and Strategy. New age international.

Koufteros, X., Rawski, G. E., & Rupak, R. (2010). Organizational integration for product development: the effects on glitches, on‐time execution of engineering change orders, and market success. Decision Sciences, 41(1), 49-80.

Lega, F., Marsilio, M., & Villa, S. (2013). An evaluation framework for measuring supply chain performance in the public healthcare sector: evidence from the Italian NHS. Production Planning & Control, 24(10-11), 931-947.

Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta‐analysis of supply chain integration and firm performance. Journal of Supply Chain Management, 49(2), 34-57

Lu, D., Ding, Y., Asian, S., & Paul, S. K. (2018). From supply chain integration to operational performance: The moderating effect of market uncertainty. Global Journal of Flexible Systems Management, 19(1), 3-20

Lummus, R. R., Vokurka, R. J., & Krumwiede, D. (2008). Supply chain integration and organizational success. SAM Advanced Management Journal, 73(1), 56.

Mostert, S., Njuguna, F., Olbara, G., Sindano, S., Sitaresmi, M. N., Supriyadi, E., & Kaspers, G. (2015). Corruption in health-care systems and their effect on cancer care in Africa. The Lancet Oncology, 16(8), e394-e404.

Msimangira, K.A.B. (2010). Supply chain integration in New Zealand public hospitals: impact on supplier commercial relationships and order fulfillment. Ph.D. thesis, Auckland University of Technology, New Zealand.

Mustaffa N., and Potter A., (2009). Healthcare supply chain management in Malaysia: a case study; Supply Chain Management: An International Journal, 14 (3).234–243

Narasimhan, R., Swink, M., & Viswanathan, S. (2010). On decisions for integration implementation: An examination of complementarities between product‐Process technology integration and supply chain integration. Decision Sciences, 41(2), 355-372.

Njagi, M. M., & Ogutu, M. (2014). Role of supply chain integration on supply chain performance in Kenyan State Corporations. International Journal of Current Business and Social Sciences, 1(2), 188-204.

Odongo, E. N. (2017). Supply chain integration and performance of public universities in Kenya. Unpublished MBA Project.

Okech, T. C., & Lelegwe, S. L. (2016). Analysis of universal health coverage and equity on health care in Kenya. Global journal of health science, 8(7), 218.

Peng, D. X., Verghese, A., Shah, R., & Schroeder, R. G. (2013). The relationships between external integration and plant improvement and innovation capabilities: the moderation effect of product clock speed. Journal of Supply Chain Management, 49(3), 3-24.

Penrose, E. (1959). The theory of the growth of the firm, Wiley, New York.

Prajogo, D. I., Oke, A., & Olhager, J. (2015). Supply chain processes: linking supply logistics integration, supply performance, lean processes, and competitive performance. International Journal of Operations & Production Management, 36(2), 220–238.

Ryan, G. S. (2013). Online social networks for patient involvement and recruitment in clinical research. Nurse researcher, 21(1), 35-39.

Schoenherr, T., & Swink, M. (2012). Revisiting the arcs of integration: Cross-validations and extensions. Journal of Operations Management, 30, 99-115.

Schroeder, R. G., Shah, R., & Xiaosong, Peng, D. (2011). The cumulative capability ‘sand cone’ model revisited: a new perspective for manufacturing strategy. International Journal of Production Research, 49(16), 4879-4901.

Shretta, R., Johnson, B., Smith, L., Doumbia, S., de Savigny, D., Anupindi, R., & Yadav, P. (2015). Costing the supply chain for delivery of ACT and RDTs in the public sector in Benin and Kenya. Malaria Journal, 14(1), 57.

Sousa, R., Oliveira, P., van der Vaart, T., Pieter van Donk, D., Gimenez, C., & Sierra, V. (2012). Modeling the integration-performance relationship: Collaborative practices, enablers, and contextual factors. International Journal of Operations & Production Management, 32(9), 1043-1074

Stevens, G. C., & Johnson, M. (2016). Integrating the Supply Chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.

Swink, M., Narasimhan, R., & Wang, C. (2007). Managing beyond the factory walls: the effects of four types of strategic integration on manufacturing plant performance. Journal of operations management, 25(1), 148-164.

Tavakoli, M. R., Asian, S., & Hemati, M. (2012). Using a fuzzy MADM in the Balanced SCORE card for the performance improvement in Iranian steel industries. Iranian Journal of Trade Studies (IJTS), 16(61), 51–80.

Vermeulen, Y., Niemann, W., & Kotzé, T. (2016). Supply chain integration: A qualitative exploration of perspectives from plastic manufacturers in Gauteng. Journal of Transport and Supply Chain Management, 10(1), 1-13.

Wong, C. W., Lai, K. H., & Cheng, T. C. E. (2011). Value of information integration to supply chain management: roles of internal and external contingencies. Journal of Management Information Systems, 28(3), 161-200.

Yuen, K. F., & Thai, V. V. (2016). The relationship between supply chain integration and operational performances: A study of priorities and synergies. Transportation Journal, 55(1), 31-50.

Yunus, E. N., & Tadisina, S. K. (2016). Drivers of supply chain integration and the role of organizational culture: empirical evidence from Indonesia. Business Process Management Journal, 22 (1), 89-115

Zahoor, A., & Sahaf, M. A. (2018). Investigating causal linkages in the balanced scorecard: an Indian perspective. International Journal of Bank Marketing, 36(1), 184-207.

Zhao, K., Kumar, A., Harrison, T. P., & Yen, J. (2011). Analyzing the resilience of complex supply network topologies against random and targeted disruptions. IEEE Systems Journal, 5(1), 28-39.

Zhao, L., Huo, B., Sun, L., & Zhao, X. (2013). The impact of supply chain risk on supply chain integration and company performance: a global investigation. Supply Chain Management: An International Journal, 18(2), 115-131.

How to Cite
Mbugua, A., & Namada, J. (2019). Supply chain integration and operational performance of Kenya’s public health sector. International Journal of Research in Business and Social Science (2147- 4478), 8(5), 01-10.