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

Reuben Musyoka
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Reuben Musyoka: Department of Commerce, School of Business and Economics, Daystar University

African Journal of Commercial Studies, 2026, vol. 7, issue 2

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

Keywords: Customer Integration; Operational Efficiency; Commercial State Corporations; Process cycle time; Service delivery; Kenya (search for similar items in EconPapers)
JEL-codes: L32 M11 O31 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-23

DOI: 10.59413/ajocs/v7.i2.4

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