ROLE OF INFORMATION SYSTEMS COMPETENCE IN SUPPLY CHAIN AGILITY IN SERVICE INDUSTRY CASE OF TECHNICAL UNIVERSITY OF KENYA

Abstract

Abstract The purpose of this study was to examine the relationship between information systems and supply chain agility in service industry. Using a sample of 96 (N= 96) top, middle and lower level staff of the Technical University of Kenya and a case study design, the research is conducted through interviews and survey by use of interview guides and questionnaires to collect data from the respondents. Interviews were carried out with top management in the supply chain and surveys from both the middle and lower level managers across Information systems and supply chain management –related departments. The data collected was analysed descriptively and inferentially using regression and confirmatory factors analyses through the Statistical Package for Social Sciences. The study was augmented by investigating the role of IS competence to achieve supply chain agility. A gap noted and filled by the study is that as to date most of the published literature in this stream of research has mainly focused on manufacturing industry leaving out the service industry. This research was an attempt to examine and analyze the use and value of IT enabled capabilities to promote supply chain agility in service industry. Agility capabilities are the strengths the firm needs in order to respond to the environment that are enabled through the agility providers of the organizations, people, technology and innovation. The study findings concurred with the views of most scholars that Information Systems (IS) have rapidly reshaped business processes and supply chain agility as an operational strategy, has been especially affected. From the F statistic test value of 26.551 and a small significance value of 0.000 that is P = 0.000 > α = 0.05, indicates that there is a regression relationship between the dependent variable (supply chain agility) and the predictor variables. For instance the study supports the importance of information systems service competence based on low response time to IS problems to enhance speed and efficiency and management skills based on network management enhancing collaborative abilities, data centre management to enhance virtual integration and contributing to quick service delivery in the context of supply chain agility. The R Square value of 0.956 shows that the variables account for 95.6% of the change in supply chain agility. From findings it can be concluded that IT Service Competence affects supply chain agility more in the institution followed by IT Services Management Skills as measured by the various items under each predictor.