Influence of Supplier ICT Integration on Procurement Performance of Pharmaceutical Manufacturing Firms in Nairobi County
Author(s)
Ann Wanjiku Ndungu , Dr. Denis Chege ,
Download Full PDF Pages: 29-39 | Views: 535 | Downloads: 146 | DOI: 10.5281/zenodo.5066443
Abstract
This paper assesses the influence of supplier ICT integration on the procurement performance of pharmaceutical manufacturing firms in Nairobi County, Kenya. The pharmaceutical manufacturing companies are among the integral part of the country’s economy. In addition to these companies being part of the large pillar of manufacturing sector, they as well support the country’s healthcare, another critical pillar of the country’s socio-economic prosperity. It is therefore prudent that the suppliers of these pharmaceutical manufacturing companies be managed so as to obtain quality drugs and reliable services. Despite supplier’s contribution to the success of pharmaceuticals, there is scant evidence on how they have been brought closer in the decision making to determine the collective success of the entire sector. Available evidence shows the integrating information technology would a be a great move towards enhancing management of the suppliers. The paper was anchored on the Technology Acceptance Model. Descriptive survey research design was adopted for the study. The target population of the study was all the employees in the procurement department of the 110 pharmaceutical manufacturing firms in Nairobi County. Target respondents were the procurement managers of the pharmaceutical manufacturing firms in Nairobi County. A census was used where all the 110 firms were surveyed. Data collection instrument was a structured questionnaire which was used to collect primary data. Analysis of the collected data was done with the help of Statistical Package for Social Sciences (SPSS) The findings revealed that supplier ICT integration through inventory control, information exchange and coordination of functions significantly influenced the procurement performance in the pharmaceutical manufacturing companies. It was concluded that procurement performance in most of the companies was affected by inadequate embrace of ICT in managing the suppliers, thus it is recommended that the procurement managers in these companies ought to embrace ICT integration as one of the aspects of effectively managing suppliers
Keywords
Supplier Management, Supplier ICT Integration, Procurement Performance, Pharmaceutical Manufacturing Firms
References
i Ahamat, H., & Abdul Rahman, N. (2017). State-owned enterprises, market competition and the boundaries of competition law in Malaysia. Jurnal Pengurusan, 43(16), 3321-3351.
ii Amours, T. (2019). Supply chain management in the drug industry: Delivering patient value for pharmaceuticals and biologics. John Wiley & Sons.
iii Borges, M., Hoppen, N., & Luce, F. B. (2009). Information technology impact on market orientation in E-businEss. Journal of Business Research, 62(9), 883-890.
iv Bowersox, D. J. & Closs, D. J. (2016). Logistical Management: The Integrated Supply Chain Process. New York: McGraw-Hill.
v Brau, J. C., Fawcett, S. E., Magnan G. M., & McCarter, M.W. (2017). Information sharing in supply chain management: A two-dimensional perspective, Working paper, University of Illinois, Urbana-Champaign.
vi Burton, B. (2018). Connecting users with their information. Business Information Review, 22(4), 244-247.
vii Carr, A. S., & Pearson, J. N. (2017). Strategically managed buyer supplier relationships and performance outcomes, Journal of Operations Management; 17(2), 497-519.
viii Choy, L. T. (2014). The strengths and weaknesses of research methodology: Comparison and complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities and Social Science, 19(4), 99-104.
ix Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319.
x Dehning, B., Richardson, V. J., & Zmud, R. W. (2006). The financial performance effects of IT-based supply chain management systems in manufacturing firms. Journal of Operations Management, 25(4), 806-824.
xi Fawcett, A. M., Hofer, A., & Fawcett, S. E. (2015). Relational strategies in supply chains: A critical review. Academy of Management Proceedings, 2015(1), 15-25.
xii Fitzgerald, K.R. (2015). For Superb Supplier Development-Honda wins!” Purchasing, 119 (4), 32-40.
xiii Frohlich, M. T., & Westbrook, R. (2012). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19 (3), 180- 200.
xiv Hackney, R., & Dunn, D. (2017). Introduction. Business Information Technology Management, 1-10.
xv Huang, S. H., & Keskar, H., (2017). Comprehensive and configurable metrics for supplier selection. International Journal of Production Economics, 105 (2), 510–523.
xvi KAM. (2015). Kenya Manufacturers and Exporters Directory (11th ed.). Nairobi: Kenya Association of Manufacturers
xvii Kenya: Vision 2030 launched. (2007). Africa Research Bulletin: Economic, Financial and Technical Series, 44(5), 17404B-17404C.
xviii Kepher, A., Shalle, I., & Oduma, E. (2015). Role of Supplier Management on Procurement Performance in Manufacturing Sector in Kenya: A Case of East African Breweries, Kenya. International Journal of Social Science and Humanities Research, 3(4), 540–555.
xix KIPPRA, (2013). Creating an Enabling Environment for Stimulating Investment for Competitive and Sustainable Counties. Kenya Economic Report 2013. Kenya Institute for Public Policy Research and Analysis, Nairobi
xx Krause, D. R. (2017). “Supplier development, current practices and outcomes” International Journal of Purchasing and Materials Management, 33 (2), 12-19.
xxi Li, Y., & Li, C. (2015). Analytical hierarchy process model applied to port logistics efficiency commentary. 2010 International Conference on E-Health Networking Digital Ecosystems and Technologies (EDT).
xxii Mentzer, J. T., & Esper, T. L. (2015). Supply chain management strategy. Wiley International Encyclopedia of Marketing, 7 (2), 121-178.
xxiii Moahi, K., Bwalya, K., & Sebina, P. (2017). Health information systems and the advancement of medical practice in developing countries. IGI Global
xxiv Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L., (2017). Purchasing and supply chain management. Cengage Learning.
xxv Moberg, P. & Sako, L. (2017). How supply network operations strategies evolve: composition, competitive priorities and customization. International Journal of Physical Distribution & Logistics Management, 33(1), 75-91.
xxvi Muhia D.W., & Afande F.O., (2015), Adoption of E-procurement strategy and procurement performance in state corporations in Kenya (A case of KRA), Journal International knowledge sharing platform, 5(6).
xxvii Mutegi, L., Wanyoike, T., Sevilla, J., Olukuru, J., Mberi, T., & Weru, T. (2017). Unlocking the supply of Open Government Data for SDGs: A case of Kenya national bureau of statistics (KNBS). 2017 IST-Africa Week Conference (IST-Africa).
xxviii Mutegi. M., Geofrey, K. G., & Anne, S. (2019). Factors affecting sustainability of donor funded food security projects in Tharaka south Sub-County, Tharaka Nithi County, Kenya. Asian Journal of Agricultural Extension, Economics & Sociology, 6 (2), 1-7.
xxix Nzovila, R., Mburugu, K. N., & Kirima, L. K. (2019). End user involvement and supply chain performance in Kenyan universities, a case of chuka university, Kenya. International Journal of Supply Chain and Logistics, 3(3), 24
xxx Prahalad, C.K. & Hamel, G. (2016), “The Core Competence of the Corporation”, Harvard Business Review, 68, May-June, pp.79-91.
xxxi Pradip, C., & Kannan, M. (2015). Stratification. A Key Tool to Drive Business Focus and Complexity Management, International Journal of Management (IJM), 6(7), 8693.
xxxii Saurav, S. (2019). Supply chain management in pharmaceutical industry. Supply Chain Management Strategies and Risk Assessment in Retail Environments, 267-284.
xxxiii Sullivan, N., Hutcherson, C., Harris, A., & Rangel, A. (2019). A response to Zhang et al. (2018), “Can mouse-tracking reveal attribute processing speeds in dietary self-control?
xxxiv Stock, R. A., & Lambert, D. F. (2018). Stock options, restricted stock, and incentives. SSRN Electronic Journal, 5(4), 15-19.
xxxv Tanner, C., Wolfle, R., Schubert, P., & Quade, M. (2016). Current Trends and Challenges in Electronic Procurement: An Empirical Study. Merging and Emerging Technologies, Processes, and Institutions; Bled, Slovenia
xxxvi Van der Vaart,T . & Van Donk, D.P. (2018). Buyer focus: Evaluation of a new concept for supply chain integration. International Journal of Production Economics, 8 (9), 121-132.
xxxvii WHO. (2018). Kenya Pharmaceutical Country Profile. Geneva: WHO Press.
xxxviii Williams, P. (2018). Measuring the importance of attributes in logistics research. The International Journal of Logistics Management, 21(1), 52-59.
xxxix Zaman, M. H., & Zaman, M. H. (2018). Bitter pills: The global war on counterfeit drugs. Oxford University Press, 36, (3), 365.
xl Zhou, H. & Benton, W.C. (2014), “Supply chain practice and information sharing”, Journal of Operations Management, 25 (6), 1348-1365.
Cite this Article: