Leveraging Technology Integration in Kenya's Food & Beverage Industry for Competitiveness.

Abstract

Technology acts in the enterprise as a crucial lynchpin connecting functional areas. For more than 20 years, technology has been commonly defined as a vital instrument for efficient and competitive supply chain and logistics organizations. Kenyan food and beverage firms are vulnerable to SC disruptions and challenges, which are rooted in the lack of effective internal and external supply chains. As such, the disjointed nature of the food and beverage manufacturing subsector presents a significant challenge in relation to competitive advantage. Companies are enhancing competitiveness by strategically utilizing technology. Therefore, the main aim of the study was to evaluate the effect of technology integration on the competitive advantage of food and beverage manufacturing firms in Kenya. The study adopted a cross sectional survey. The target population was managers working along the supply chain from 270 food and beverage manufacturing firms in Kenya. Two-stage sampling design was employed. First stage, cluster random sampling was used to obtain 73 food & beverages manufacturing firms. Second stage, convenience sampling was used to select two participants from the 73 selected firms. Thus, a sample size of 146. Questionnaires were used to collect primary data using both the drop and pick and mailing methods. Secondary data was obtained through document analysis. Data was analyzed using SPSS version 28 to generate descriptive and inferential statistics. The study found that technology integration had a positive significant linear relationship with competitive advantage. Additionally, the competitive advantage is anticipated to grow for every unit increase in technology integration. Thus, the study concludes that the parameters of technology integration (automatic identification technology, advanced planning systems, transaction processing systems, and data sharing systems) are crucial in enhancing a company's competitive advantage in the food and beverage industry. The study also revealed that food and beverage manufacturing firms in Kenya have not standardized or managed the exchange of knowledge between cross-functional departments, improved demand forecasting accuracy, or reduced bottlenecks between internal processes and external suppliers. The study recommends implementation of a KMS that facilitates cross-functional knowledge sharing and standardization. Prioritize features like document management, collaboration tools, and knowledge repositories tailored to the industry's specific needs.