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The Effect of Customer Integration on the Operational Efficiency of Commercial State Corporations in Kenya

Author

Listed:
  • Musyoka, Reuben

    (Department of Commerce, School of Business and Economics, Daystar University)

Abstract

Commercial State Corporations (CSCs) in Kenya continue to face persistent operational inefficiencies despite ongoing reforms, privatization efforts, and substantial government bailouts. These inefficiencies, evident in high operating costs, delays, and inconsistent service quality, have been linked to weak supply chain practices, particularly inadequate customer integration. Effective customer integration enables organizations to capture and utilize customer information for demand planning, service customization, and timely operational adjustments, yet its influence within Kenya’s state-owned enterprises remains underexplored. This study examined the effect of customer integration on the operational efficiency of commercial state corporations in Kenya. Anchored in systems theory and contingency theory, the study adopted a descriptive cross-sectional research design and targeted 46 active CSCs, with procurement officers serving as units of analysis. A census approach was used, and data were collected through a structured questionnaire. Ordinary Least Squares regression analysis using SPSS version 30 established that customer integration has a significant positive effect on operational efficiency (t-statistic = 6.909, P-value

Suggested Citation

  • Musyoka, Reuben, 2026. "The Effect of Customer Integration on the Operational Efficiency of Commercial State Corporations in Kenya," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(2).
    • Handle: RePEc:cwk:ajocsk:2026-23
    DOI: 10.59413/ajocs/v7.i2.4
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    Keywords

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    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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