Strategic Supply Chain Integration and Competitive Advantage: An Essential Nexus in Vehicle Assembly Firms in Kenya
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Date
2025-11
Journal Title
Journal ISSN
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Publisher
Canadian Center of Science and Education
Abstract
This research examined the impact of strategic supply chain integration on the competitive advantage of the
vehicle assembly companies in Nairobi City County, Kenya. The Government of Kenya has given attention to
the vehicle assembly industry since it forms part of its industrial development strategy, which includes pursued
flagship programs such as Vision 2030 and the Big 4 Agenda. Nonetheless, despite these efforts, the Kenya
Association of Manufacturers has reported challenges such as severe supply chain inefficiencies and
coordination gaps between the assembler, the local suppliers and the modern inventory management systems.
The business environment today thrives on rapid technological innovations and charters very robust competitive
activity. This scenario has made supply chain integration not only a strategy of excellence, but one of the pillars
of organizational success in the long run. In the Kenyan system of industrial development, the flagship initiatives
have been emphasized. Nonetheless, even with these measures and efforts, the Kenya Association of
Manufacturers notes that it continues to face challenges such as high supply chain inefficiencies, which lead to
underutilization of capacity, disjointed coordination among assemblers and local suppliers, and inconsistent
uptake of modern inventory management systems. The study focused on the interplay between information
sharing, collaborations, lean operations, and inventory control, anchored on the Resource-Based View, Dynamic
Capabilities Theory, and Porter Theory of Competitive Advantage. Descriptive research design was adopted, and
primary data was collected using questionnaires from 109 stratified supply chain professionals from three large
assembly firms (CFAO Mobility Kenya/KVM, Isuzu East Africa). A pilot study was conducted to determine the
reliability and validity of the study. Descriptive statistical analysis reported high levels of internal information
sharing and strategic collaborations, albeit, their lack of real-time data exchange to suppliers and underuse of
automated inventory systems. Multiple regression analysis listed as significant predictors of competitive
advantage all four strategic supply chain integration (SSCI) practices, while collaboration was the most
substantial as a single predictor. However, the correlation analysis suggested the siloed and isolated nature of the
practices, most notably, the gap between strategic information sharing and collaboration integration. Strategic
supply chain integration, therefore, is a source of competitive advantage, albeit, remains underexploited and
underpinned by the lack of synergistic integration to its components. The study advised companies in the Kenyan
automotive industry to enhance the strength and competitiveness of their supply chains by creating consolidated
digital supplier portals, developing collaborative operational taskforces, and acquiring automated inventory
management systems
Description
Research Article
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Citation
Lang’at, I. C., & Muathe, M. S. (2025). Strategic supply chain integration and competitive advantage: An essential nexus in vehicle assembly firms in Kenya. International Journal of Economics and Finance, 17(12), 30–44. Canadian Center of Science and Education. ISSN 1916-971X, E-ISSN 1916-9728.