The Power of Internal Systems Integration: A Pathway to Organizational Performance for Clearing and Forwarding Firms in Kenya
Keywords:
Internal systems integration, supply chain integration, organizational performance, Clearing and forwardingAbstract
Futurists envision a transformative shift in organizational performance, where supply chain agility and strategic strengths surpass individual company competitiveness. To establish dominance, firms must forge alliances across the supply chain, necessitating optimal internal systems integration strategies. The primary focus of this study is to demonstrate the transformative potential of internal systems integration (ISI) implementation by clearing and forwarding (C&F) firms on their organizational performance. The results are based on 298 respondents from Authorised Economic Operators C&F firms in Kenya using structured questionnaires, correlational research design and stratified sampling technique. Data collected was subjected to descriptive statistics, preliminary tests and hypothesis testing using structural equation to test the study hypothesis that internal systems integration has beneficial effects on organizational performance. The path direction in SEM analysis indicates that there is a significant positive influence of internal systems integration on organizational performance of C&F firms in Kenya (Path coefficient = 0.649, C.R = 3.626, P-value < 0.001). The squared multiple correlations (R-square) of the model is 0.42, implying that internal integration explains 42% variation in organizational performance. The study concluded that for C&F firm’s to enhance organizational performance and forge alliances with regulators, customers, and suppliers across the supply chain, strategic leader’s needs to prioritize internal integration using robust holistic systems and technologies
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Copyright (c) 2023 Chelagat Getrude Meteur, Mulaa Juliana Namada, Otieno Gabriel Okello
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