Knowledge Management for Industrial Innovation and ...

THE 3RD ANNUAL INTERNATIONAL CONFERENCE ON INDUSTRY AND HIGHER EDUCATION

Knowledge Management for Industrial Innovation and Development

A Journal of the Management University of Africa

Published by The Management University of Africa, Popo Road, Off Mombasa Road, Belle Vue, South C P.O. Box 43706 - 00100 Nairobi, Kenya This publication may not be sold or reproduced in any form, in whole or in part by any means whether electronic or mechanical including photocopying, recording or through any information storage retrieval system, whether temporarily or permanent without official written permission from the Management University of Africa

all rights reserved © The Management University of Africa, 2012 First published 2012 ISSN 2074-4730 Disclaimer: The ideas expressed in this journal are those of the author(s) and do not necessarily reflect those of the Management University of Africa

Contents

1: From E-Supply Chain Capability Generation to Information Technology Value Co-creation: A Perspective of E-Business Process....................................................................................... 2 Jing Zhao; Yi Jiang; and Zhen Zhu − (China University of Geosciences)

2: Supply Chain Management in the Manufacturing Sector: Components, Benefits and Challenges........................................................................................................................... 10 1Kitainge, Kisilu(PhD) and 2Koech, William K. − (1Chepkoilel University College, Kenya, and 2Rift Valley Institute of Science and Technology, Kenya)

3: Influence of Internal and External Environment Factors on the Strategic Planning Process in Ugandan Organisations.................................................................................................. 22 Amooti, Bagire Vincent and Namada, Juliana Mulaa – (Makerere University Business School, Uganda)

4: Management of Records for Competitive Advantage in Kenya’s Banking Sector............. 32 Maseh, Elsebah and Mzera, Nelly − (Moi University, Eldoret, Kenya)

5: A Survey of Orientation Practices in Commercial Banks in Kenya.................................. 38 Wambua, Philip Peter − (Kenyatta University, Kenya)

6: The Role of Pension Schemes on Motivation of Employees: A Case Study of Tuskys Supermarkets....................................................................................................................... 47 Wanjohi, Caroline Wagithi; Wanjau, Kenneth (PhD) and Anyango, Dickson Mark Odhiambo − (Jomo Kenyatta University of Agriculture and Technology, Kenya)

7: Social Economic Factors Affecting Women Loan Repayment Behaviour in KWFT.......... 59 Lyani, Mary Nelima; Nganga, Stephen Irura and Cheruiyot, Thomas − (Jomo Kenyatta University of Science and Technology, Karatina University College and Moi University, Eldoret, Kenya)

8: Servant Leadership and Sales Force Performance in Uganda’s Banking Sector................ 71 Kiggwe, Musa; Ngoma, Muhammed and Omagor, Charles − (Makerere University Business School, Uganda)

9: Movers in Achieving Industrial Innovation Sustainability: A Critical Review.............. 84 1Kamau, Alice Wangui and 2Katuku, Alex − (1Karatina University College, Kenya and 2The Kenya Institute of Management, Kenya)

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10: Management and Leadership Competencies of Agricultural Extension Agents in Kenya: Implications for Curriculum Development.......................................................................... 92 Lopokoiyit, Mary C.; Onyango, Christopher(PhD); and Kibett Joash K.(PhD) − (Egerton University, Kenya)

11: Benefits of Membership to a Microfinance Institution as Assessed by Both Subjective and Objective Measures: A Case Study of the Uganda Gatsby Trust......................................... 104 Joy Turyahabwa and Isaac Nkote Nabeeta − (Makerere University Business School)

12:The Impact of Knowledge Management and Intellectual Capital on Institutional Innovations . ..................................................................................................................... 114 Kavita C. Kyuli and Gilbert Indanya − (The Kenya Institute of Management, Narok Branch, Kenya)

13: The Perception of Affirmative Action on Women Recruitment: A Case of Organisations within Eldoret Municipality Kenya.................................................................................. 123 Wambui, Tabitha Wangare, Boit, John(PhD) and Gathuthi, Elizabeth Wangari(PhD) − (Moi University Eldoret, Kenya, and The Management University of Africa, Kenya)

14: Analysing the Role of Local Government in Promoting Knowledge Management in Higher Education: A Case of the City Council of Nairobi.................................................. 144 Ntoiti, John and Maureen Kangu − (City Council of Nairobi, Kenya, and The Management University of Africa, Kenya)

15: The Effect of Contextual Factors on Risk Underwriting Decisions in Insurance Industry. 157 Mudaki, Abisay Lumosi and Maluti, Lucania Vincent (Masinde Muliro University of Science and Technology, Kenya)

16: Knowledge Management and High Performance Organisations in the Financial Institutions in Uganda...................................................................................................... 165 1Bagorogoza, Janet Kyogabiirwe; 2André de Waal(PhD); 3H.J. Van den Herik(PhD); and 4B.A. Van de Walle − (1Makerere University Business School, Uganda; 2Maastricht School of Management, Netherlands; and 3&4Tilburg University, the Netherlands)

17: Role of Governance in Strategy Implementation in Higher Education Institutions in Kenya................................................................................................................................ 179 1Amurle, Grace Soprin; and 2Chiuri, Beatrice − (1African Economic Research Consortium (AERC) and 2Kenya Polytechnic University College, Kenya)

18: The Level of Professionalism and Effectiveness of the Teacher Counsellor in Student Guidance and Counselling in Secondary Schools in Nandi North District.......................... 197


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Tanui, E. (PhD); Ndegwa, Lucy and Jepkemboi, R. − (School of Education, Arts and Social Sciences, Narok University College, Kenya)

19: A Framework for Implementing Sustainable E-learning Information Systems in Developing Countries: A Case of Africa............................................................................. 205 Kituyi, Geoffrey Mayoka; Moya, Musa and Kyeyune, Robert − (Makerere University Business School, Kampala)

20: Communication Industry and Higher Education: The Learning in E-learning.......... 211 Nyaole, Rosemary–Kowuor (Daystar University, Kenya)

21: Mobile Telephony and Rural Household Income Growth in Uganda............................ 217 Ggoobi, Ramathan and Nabeta, Isaac Nkote − (Makerere University Business School, Uganda)

22: Getting the Right Time to Do What Is Right............................................................... 234 Amuhaya, Geoffrey − (Ministry of Public Works, Kenya)

23: Evaluation of the Policy Implications of Bridging the Digital Divide in Kenya using ICT Access-Involvement Interaction Policy Model.................................................................... 241 Okongo, Kennedy Odiwour and Sakwa M. M. − (Jomo Kenyatta University of Agriculture and Technology, Kenya)

24: The Role of Human Resource Management Practices in Adoption of Competitive Strategies by Mobile Phone Service Providers in Kenya.................................................................... 257 1Kiriri, Peter N. (PhD); 2Guyo, Wario W. (PhD) and 3Matta, Ngao Sammy −(1United States International University, Nairobi Kenya, and 2&3Jomo Kenyatta University of Agriculture and Technology, Kenya)

25: Definition of CSR from a Ugandan Perspective: Results from the Responses of Sheraton Uganda Trainees, Employees and Locals Accessing the Sheraton Supported Public Gardens.... 268 Turyahabwa, Joy − (Makerere University Business School, Kenya)

26: Enforcing Quality Practices in Higher Education and Industry: The Legal Framework... .......................................................................................................................................... 280 Christopher Yegon and Moses Wandera − (Jomo Kenyatta University of Agriculture and Technology and Ministry of Education, all in Kenya)

27: ICT Adoption and Growth of Small Enterprises: A Study of Kisumu City (CBD)....... 288 Ogalo, James Ochieng (PhD) and Asaka, Charles Nyangara − (The Kenya Institute of Management, Kenya)

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28: An Assessment of Communication Dynamics E-Government: A Case of the Online Recruitment System........................................................................................................... 302 Ntwigah, Fridah Wanjiru − (Moi University, School of Human Resource Development, Kenya)

29: Designing and Developing an ICT Management System for Teaching and Learning in Kenya: The ODL Model.................................................................................................... 317 Kessio, David K.; Boi, James K. and Boit, John M. (PhD) − (Moi University, Kenya)

30: A Framework for Post Implementation Evaluation of E-Government Systems in Kenya – A Citizen Centric Approach.............................................................................................. 325 Ogutu, Joseph Onyango and Irungu, Joseph Kamau − (University of Nairobi, Kenya)

31: Telephone Interviews: An Option for Reducing Costs by Firms................................... 333 Lelan, Joseph K. and Chumba, Sammy K.−(Moi University Eldoret, Kenya)

32: The Role of ICT in the Growth and Development of the Tourism Industry in Kenya.. 342 Othoche, Bertha − (Pwani University College, Kenya)

33: Utilisation of Information Communication Technology in Economic Growth and Poverty Reduction in Africa............................................................................................................ 353 Oganga, Clement Otieno − (The Kenya Institute of Management Kisumu Branch, Kenya)

34: Entrepreneurship and E-commerce as Core Disciplines in Institutions of Higher Learning........................................................................................................................... 369 Lucas Mwirigi and Nderi Wari − (The Kenya Institute of Management Meru Branch, Kenya).

35: Pre-service Teachers’ Preparedness in Use of ICTs in School........................................377 Mary, W. Ng’ang’a1 ; Z.K. Kosgei2; Dr J. Kanyiri 3. - (1Moi University, School of Education; 2Moi University, School of Education; 3Moi University, School of Education)


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FOREWORD The Annual International Conference began two years ago as the brainchild of the Kenya Institute of Management. The main objective of the annual activity is to bring educationists together with industry, in pursuit of narrowing the gap between education and industry. The organisers recognise that without regular interaction between the educationists and industry players, it is possible for the educationists and trainers to produce square pegs for industrial round holes. It was in the foregoing regard that the first forum of this kind was launched in June 2009. The conference is growing phenomenally and it is with a great measure of satisfaction that the institute passed it on to the Management University of Africa (MUA), to carry it into the future. The conference represents MUA inaugural scholarly engagement with both industry and society. The 3rd Annual International Conference on Industry and Higher Education focused on “Knowledge Management for Industrial Innovation and Development”. It is important to note that the nature of the work environment is continuously changing in relation to technology, global economy and organisational structures. The changes call for acquisition and development of new skills within the educational institutions. Institutions of higher learning must invest and engage in serious research to create knowledge products and processes necessary for industrial development and the continuous innovation of these industries. These institutions must also play an important role in the protection, commercialisation and dissemination of this knowledge. Research must be undertaken to inform policy in respective institutions and nations in order to pass the requisite Intellectual Property Rights (IPR) laws to protect specific and relevant knowledge systems. For example, African institutions of higher learning should endeavour to collaborate with each other in knowledge sharing and the cross-fertilisation of ideas for industrial innovation. They must also collaborate with industry to be able to commercialise their research findings as well as contribute to enhance the process of industry to bring about innovative ways of production. It is with the above thinking in mind, that the MUA organised its inaugural scholarly engagement with both the industry and society with a specific focus on theme “Knowledge Management for Industrial Innovation and Development”. At the end of the three day engagement the participants came up with some resolutions as contained in this document. MUA looks forward to fruitful implementation of the proposed solutions by the relevant parties involved. Prof. Jude Mathooko Vice Chancellor Management University of Africa

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CONFERENCE BRIEF At MUA, we recognise that learning is a continuous process. Our role in shaping the pedagogy agenda becomes even more poignant when we cast our attention to the fickle nature of industry and the job market. The job market and the technology-driven industry are in an interminable metamorphosis of a series of vicissitudes that demand that we all shape up by perpetually honing our skills. Among other objectives, this annual conference sought: 1. To provide a forum for stakeholders in the manufacturing and service industry and higher education in Africa to reflect on challenges and opportunities in merging theory and practices. 2. To advance scholarly and practical research in the development of industry and higher education in various disciplines in the business world. 3. To provide a platform for sharing experience and ideas on emerging trends in the business world and lecture theatres in relation to knowledge management and industrial innovation for sustainable development. The 2011 Annual International conference attracted participants from Kenya and other countries such as China, Hong Kong, India, South Africa, Uganda, Tanzania, Rwanda, Ghana and Nigeria. Following a wide range of quality presentation and in-depth discussions by leading academicians and industrialists based on the 2011 conference theme “Knowledge Management for Industrial Innovation and Development” the following emerged: 1. Institutions of higher learning are the only ones that can develop the requisite leadership and undertake the necessary research to develop the new knowledge that will move our economies from the P-Economy to the K-Economy to unleash innovative prowess for industrial growth. 2. Development of the right entrepreneurship policies, careful implementation and monitoring of the same can facilitate a nation inculcation of entrepreneurial culture in the populace successfully through identifying, training, nurturing and providing an appropriate economic and political environment to entrepreneurs. 3. MSMEs benefit from large investors. For example FDI bring capital, markets, technology and management skills. While MSMEs within investor-friendly government and academia that understand their needs contribute to MSMEs’ prosperity. 4. Business incubators are an effective tool to promote entrepreneurship among university graduates and in incubation centres, there is a vibrant community of established players and young tech entrepreneurs. 5. The core competencies of the e-supply chain, as associated with e-supply chain processes, are achieved by e-supply chain capabilities, which are as integrated process enablers between upstream and downstream processes to realise benefits for focal firms and all partners (for instance supplier and customer). 6. Institutions of higher learning need to tailor research to the needs of society and socialisation; fuse economic planning with technology planning; develop innovativeness by translating scientific discoveries into products through incubation units and by creating a strong link between universities and the industrial sector. Then the Government should fund research and development with at least 1 percent of GDP. 7. Effective and long-lasting university industry links can best be sustained if the universities strengthen themselves on the three “Cs” - competencies, creativity and credibility. However the whole system of links for technological change and innovation is sustainable if all the three actors in the triple helix maintain the critical four “Rs”, which are: Recognition, Respect, Reciprocity and Renewal.


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8. Cities are increasingly becoming a focus of interdisciplinary research on innovation especially in regard to “Knowledge City” which is a city purposefully designed to nurture knowledge. Therefore need for a new arena for dialogue with leaders in cities as a tool for strategic development and knowledge sharing, resulting in added value for people in cities, organisations or companies. 9. The industry exists for growth and revenue generation, while higher education institutions require revenue and sustainability to produce needed manpower for the industry. The


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impact of ICT on higher education and its implication for the industrialising economy provide a sound argument for investment on the development of intellectual capital to build capacity for knowledge-based economy. 10. Higher education and training institutions should focus on training, innovations and skills enhancement for job-creation rather than job-seeking. This will involve creating entrepreneurial institutions supported by an equally entrepreneurial state. Every nation MUST invest in her people so as to be globally competitive through quality education, training and research for national cohesion and sustainable development.

CONFERENCE DETAILS The Annual International Conference on Industry and Higher Education was launched in June 2009 under The KIM School of Management. It was in its 3rd hosting that it was passed on to the Management University of Africa (MUA), a product of the Kenya Institute of Management, to carry it into the future. The main objective of the conference has been to bring educationists together with industry, in pursuit of narrowing the gap between education and industry. The 3rd Annual Conference theme addressed “Knowledge management for industrial innovation and development.” It was held between 28th and 30th September 2011 at the MUA, University Grounds.

The Sub-Themes included: 1. 2. 3. 4. 5. 6. 7.

Relevance of Educational Assessment in Africa and Industry Placement Needs. Entrepreneurship, Small Businesses and Human Resource Development. ICT for Economic Growth in Africa. Movers of the Industry and Higher Education. Enforcing Quality Practices in Higher Education and Industry. Communication Industry and Higher Education. Management, Leadership and Governance.

Distinguished Guest Invited and Topic of Discussion 1. Prof. David N. Abdulai was the Chief Guest over the three day event. Higher education is the CEO and Executive Director of UNISA’s Graduate School of Business Leadership (SBL) in Midrand, South Africa. Prof. Abdulai in his topic “The Role of Higher Education Institutions Leadership in Knowledge Management for Industrial Innovation and Development” clearly stated, among other things, that higher institutions of learning in African can and must play an important role in knowledge generation, knowledge management, its commercialisation and dissemination to aid Africa in her growth and development efforts. It is only through knowledge generation and its effective management that will help Africa unleash her innovative prowess. 2. Prof. Paschal B. Mihyo, Executive Director of Organisation for Social Science Research in Eastern and Southern Africa led discussion on “The Role of Research in Knowledge Management for Industrial Innovation and Development”. Among other things, Prof Mihyo brought out the need for the Industry to; develop its own research capacity, develop long term strategic research and development programmes; help universities generally to train a new generation of technical and technological experts and build strong links with universities to enhance innovation for competitiveness. Prof. Mihyo also addressed the universities need to; reinvent their curricula to reflect problems in the real economy, to upgrade the capacity of their researchers to give them a competitive edge over researchers in other sectors, to take all measures to build credibility and trust, and to get the right managers for centres of technology and innovation.


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3. Prof. Maggie Kigozi, Investment Promotion Expert and immediate former Executive Director of Uganda Investment Authority, lead a discussion on “The Role of the MSME Sector in National Industrialisation”. Prof. Kigozi clearly stated that MSMEs directly benefit from large investors in various ways, for example, FDI bring capital, create markets, upscale technology and redefine management. This implies that MSMEs, under investor-friendly governments and academia who understand MSME’s needs, contribute to MSME’s prosperity. 4. Prof. Jing Zhao, Director, Centre for International Cooperation in E-Business, School of Economics and Management, China University of Geosciences discussed “From e-Supply Chain Capability Generation to Information Technology Value Co-Creation: A Perspective of E-Business Process”. Prof. Jing gave an insight on the theoretical support required for a dynamic process that is distinctive in e-supply chain capabilities and embedded in e-business process which leads to process performance first and then financial performance and network performance. The discussion emphasised that new e-supply chain capabilities act as integrated process enablers between upstream and downstream e-business process to realise e-supply chain value for all partners. 5. Prof. Peter Berachesebe Kibas, Deputy Vice Chancellor (DVC) of Kabarak University and full Professor of Entrepreneurship and Management gave insights on “Entrepreneurship: Key to Kenya’s Development”. Prof Kibas, among other ideas, suggested that one vital process in the development of entrepreneurship is the inculcation of the entrepreneurial culture in the populace through developing the right entrepreneurship policies and careful implementation and monitoring process to ensure success. 6. Prof. Shaukat A. Abdulrazak, Secretary/CEO National Council for Science and Technology (NCST) handled the topic: “Importance of Ensuring Dissemination, application of scientific research result and transfer of Technology for Economic Development”. Prof Shaukat emphasised that research important for a country’s economic development. Higher education stated that economic development through research is achieved when research, for example, is able to create wealth, shape policy, contribute to knowledge development and address societal issues. 7. Charles Omagor, the Dean Faculty of Commerce, Makerere University Business School and marketing specialist addressed “Servant Leadership and Sales Force Performance in the Banking Sector - A Case of Uganda”. Omagor established that there is a significant positive relationship between servant leadership, sales force commitment and sales force performance. There is therefore a case for the adoption of the servant leadership style in the management of the sales force for any organisational growth. 8. Ms. Mbonu Roseline Israel, Officer - the Deputy Provost, Adeniran Ogunsaya College of Education and Chief Executive of Space Impact Entertainment, led discussions on “Integration of Management Information System (MIS) into SMSE”. Ms Mbonu clearly brought out the impact of ICT on higher education as well as its implication for the industrialising economy. She emphasised the need for investment on the development of intellectual capital to build capacity for knowledge-based economy. 9. Mr. Rajeev Aggarwal: A PhD scholar at Singhania University, India and Director, Centre for Innovations and Technology Transfer, Kigali Institute of Science and Technology - led the discussion on “Effectiveness of Technology Business Incubation as a Tool for Entrepreneurship Development with Special Emphasis on Technology and Business Incubation Facility in Rwanda”. Mr. Aggarwal


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established that Business Incubators are an effective tool in promoting entrepreneurship among institutions of learning and it creates opportunities to access the global market by partnering with the industry player. 10. Dr. Gituro Wainaina, Director of Social and Political Pillars in the Kenya Vision 2030 Delivery Secretariat and a Board Member of Capital Market Authority discussed on “Industry and Higher Education Role in Developing Manpower in Growing Economies”. Dr. Gituro clearly stated how education and training can serve as an engine for economic growth through training of quantity and quality human resources to support sector growth and provide for equal opportunity for participation in economic development. 11. Prof. Waltraut Ritter: Director, Knowledge Networks and Innovation with the Asia Pacific Intellectual Capital Centre, a Knowledge Economy Research Centre, established the opportunity of “Knowledge Management and Innovation ‒ ChinaAfrica Knowledge Exchange”. Prof. Waltraut pointed out that cities are increasingly becoming a focus of interdisciplinary research on innovation. She argued that a city should be looked at as a region that bases its ability to create wealth on its capacity to generate and leverage its knowledge capabilities through knowledge-based extended networks formed by enterprises and people.

Summary of the Conference Presentation and Resolutions In line with the papers presented at the conference and discussions along the presentations, the following key issues were tackled and resolutions arrived at for further communication to the relevant stakeholders:

Relevance of Educational Assessment in Africa and Industry Placement Issue:

Without a clear understanding of what higher education should offer and the best way of offering it, assessments become a challenge. The industry should be in closer liaison with higher education so that the goals to be achieved are clear. It is not enough to lament that graduates are half baked. The links and collaborations must be clear and mutual.

Resolution:

There should be a deliberate move by industry and higher education towards closer collaboration in training, research and development.

Entrepreneurship, Small Business and Human Resource Development Issues:

SMEs are the backbone of African industrial development especially in resolving the unemployment problem facing the youth. However, development of this sector has not been fully exploited. This could be partly due to inadequate resources or lack of relevant skills and knowledge. In addition, the university curriculum trains graduates to become job seekers as opposed to being job creators.

Resolution:

There is need for inclusion of entrepreneurship and business planning unit in all the programmes offered in the universities. This will prepare graduates to become job creators and make Africa an industrial powerhouse.


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ICT and Economic Development in Africa Issue:

The three major issues facing organisations today are globalisation, downsizing and outsourcing. These issues afford business opportunities as well as competition. Liberalisation has opened African markets to global competitors. Cheap and affordable products from developing countries are flooding the local scene to the detriment of the local entrepreneurs. The African entrepreneur faces huge challenges in terms of access to resources, appropriate skills, inadequate disposable income, poor marketing channels as well as weak distribution networks. This is further complicated by unfavourable legal regimes and inadequate wealth creation policies which discourage local and foreign investments. Unless African businesses embrace ICTs to access the global market, they risk closing shop. ICTs are the panacea to the African entrepreneur’s woes of accessing global markets to compete with other world-class entrepreneurs. Healthy competition leads to improved quality of life and prosperity. There is need therefore for African entrepreneurs to embrace ICTs in their businesses to compete globally.

Resolution:

African Governments should spearhead development of favourable business ICT policies as well as legal regimes that make it easier for investors to prosper and engage in e-business. Africa is an economic powerhouse rich in natural and human resources. African leadership must also embrace ICTs, democracy, e-governance and continuously innovate to allow for wider participation by the citizenry.

Quality Practices in Higher Education Issues:

The rest of the world except Africa is operating on one type of the global excellence models (GEMs). Even though Africa consumes almost all the training systems of the world, she does not have a measuring criterion for excellence. Moreover, the greater challenge to Africa is that higher education sector is not involved not only in the application but also in the thinking of quality measures.

Resolution:

There is a need to appreciate the need for the development and application of an acceptable excellence model in Africa’s higher education.

Communication Industry and Higher Education Issue:

The world is now a global village. The main players are connected via the worldwide web, the Internet and social networks. Africa is the only lone player in the communication industry trying to copy, adapt and cope with changes in the communication industry. Higher education is involved in imparting skills and knowledge on how the industry works. It is time for higher education to get involved and venture into the communication industry.

Resolution:

There is need for the higher education to be in the forefront of the development and utilisation of communication technology. There is also a need for opening up the communication within and without so that higher education is not left out in the communication industry.

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Management Leadership and Governance Issues:

Most of the problems in Africa have little to do with availability but has everything to do with leadership and governance. We have a deficiency in visionary leadership in our institutions of higher learning. We are unguided in our governance styles and values. We are selfish and greedy.

Resolution:

There is a need to streamline our leadership training and sourcing in order to improve the governance practices. Institutional management is key to the sustainability of education, training and industry.

Vision 2030 Issue:

The Vision 2030 is not a blue print without a soul. It must be input with a soul in the name of values and norms. It is a goal without a path to its achievement. It says what should be without outlining the means and ways of participation by the stakeholders.

Resolution:

There is a need for an implementation plan that outlines what is expected of each sector and individuals. This shall breakdown Vision 2030's big blocks into achievable objectives. The objectives should be achieved within some time lines.

Research in Higher Education and Industry Issue:

Research in academia does not seem to have direct application to real life so as to solve societal problems. It is not practical and mostly seeks to advance or refute theories as well as contributing to the body of knowledge. It is not geared towards development related solutions due to weak linkages between industry and higher education. Those in academia do not dialogue with industry practitioners due to poor attitude and socialisation over the years. The goals of the research are out of tune with requirements of developed and developing industry. As such, academic curriculum does not reflect the skills, knowledge as well as attitude desirable in the industries. Most graduates require re-education and a comprehensive induction course to fit in the industries.

Resolution:

There is need to forge closer collaboration and linkages between industry and higher education to ensure harmonisation of curriculum content with industry skills and knowledge requirements. This will ensure that only graduates with the right skills, knowledge and attitude are released to the industry. Industries would also linkup with academia to engage in collaborative research to solve specific industrial challenges. In addition, industry can team up with academia to set up research funds to support students to conduct industry related research. There is need for a strong intellectual property rights (IPRs) regime to ensure that industry research inventions and innovations are protected as well as establishment of an elaborate research findings dissemination infrastructure.

Curriculum Articulation and Industry Issue:

All along, university curriculum development process has been dominated by ideas from the theoretical focus of the professors. Ideas already agreed on can no longer be seen as relevant


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and ideal. As such there is a mismatch between what is taught and what is expected. The divide cannot be bridged by empty rhetoric and burying our heads in the sand. We need each other at the curriculum development boardrooms.

Resolution:

There is a need for the decolonisation of our curricula and aligning of curriculum offering to the needs of the industry and society. Our education and training systems should reflect the needs of the immediate needs of the society but flexible enough to deal with the challenges of globalisation.

Quality Maintenance and Checks: Legal Frameworks Issues:

While opening of campuses and collaborations is a well conceived idea on the basis of opening access and facilitation of higher education in the country, it may not pass the stringent requirements for world-class quality education and training that nurtures innovation and creativity. Quality is a requirement for a well balanced education and training that propels the nation to the next higher levels of development and advancement. Education and training should be of high quality that is commensurate to the value of investment that goes with it. Quality human resource is a reflection of the quality that the citizens of a nation enjoy.

Resolution:

At all costs the quality of higher education should not be compromised for any other consideration. Every institution of higher learning should offer the highest quality level of education for it to remain in the market. There is a need for the development of a legal framework to govern quality of higher education.

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LIST OF ACRONYMS AND ABBREVIATIONS ACTU ANT ANTA APA AQF AUSI AVETRA CAT CBT CE CEAI CEEB CHE CVF DAAD DANIDA DE DEB DIT DPM DQAS EAC EDSAC EMIS ERM ERS ET FCAI FKE FPE FTEF FTSE GIS GPS HECA HRD HRM IGERD ILO IMF ISPs ISU ITABs IUCEA

Australian Council of Trade Unions Actor Network Theory Australian National Training Authority American Psychological Association Australian Qualifications Framework Australian Studies Institute Australian Vocational Education and Training Research Association Continuous Assessment Test Competence-Based Training Conventional Education Corporate Entrepreneurship Assessment Instrument American College Entrance Examinations Board Commission for Higher Education (Kenya) Competing Values Framework German Academic Exchange Service Royal Danish Government Distance Education District Education Board Directorate of Industrial Training Directorate of Personnel Management Director of Quality Assurance and Standards East African Community Education Sector Adjustment Credit Education Management Information System Enterprise Risk Management Economic Recovery Strategy Educational Technology Federal Chamber of the Automotive Industry Federation of Kenya Employers Free Primary Education Faculty Teaching Equivalent of Faculty Full-Time Student Equivalent Geographic Information Systems Global Positioning Systems Higher Education Colleges Association Human Resource Development Human Resource Management Institute of Gender and Research Development International Labour Organisation International Monetary Fund Internet Service Providers Idaho State University Industry Training Advisory Boards Inter-University Council for East Africa


JAB JKUAT KCPE KCSE KESSP KIE KIM KISE KNEC KTTC LANs LATF MCA MDGs MIOME MOE MST NCHE NCVER NEMA NER NGOs NTF ODE ODL OL OL & DE PDP PPP PSC PSSP PTA PULB RTO SAPs SAR SDEA SMASSE SPSS SSP TAFE TAM TCU TVET UNEP UPE

Joint Admission Board Jomo Kenyatta University College of Agriculture and Technology Kenya Certificate of Primary Examination Kenya Certificate of Secondary Examination Kenya Education Sector Support Programme Kenya Institute of Education Kenya Institute of Management Kenya Institute of Special Education Kenya National Examinations Council Kenya Technical Teachers Colleges Local Area Networks Local Authority Transfer Fund Multi-Criteria Analysis Millennium Development Goals Mombasa Institute of Muslim Education Ministry of Education Ministry of Science and Technology National Council for Higher Education (Uganda) National Center for Vocational Education and Research National Environment Management Authority Net Enrollment Ratio Non Governmental Organisations National Training Framework Open and Distance Education Open and Distance Learning Open Learning Open Learning and Distance Education Parallel Degree Programmes Purchasing Power Parity Public Service Commission Privately-Sponsored Students Programme Parents Teachers Association Public Universities Inspection Board Registered Training Organisation Structural Adjustment Programmes Self Assessment Report Second Decade of Education for Africa Strengthening of Mathematics and Science in Secondary Schools Project Statistical Package for Social Sciences Self Sponsored Programmes Technical and Further Education Technology Acceptance Model Tanzania Commission for Universities Technical and vocational education and Training United Nations Environment Programme Achieve Universal Primary Education

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USIU VET VOCTEC WEUCST YPs

United States International University Vocational Education and Training Vocational and Technical Education Western University College of Science and Technology Youth Polytechnics


Management, Leadership and Governance,

1

Movers of the Industry in Higher Education, Communication Industry and High Education and

ICT for Economic Growth in Africa

2

1


From E-Supply Chain Capability Generation to Information Technology Value Co-creation: A Perspective of E-Business Process

Jing Zhao; Yi Jiang; and Zhen Zhu − (China University of Geosciences)

1 Abstract Firms have engaged in initiatives that link e-supply chain processes (e.g., e-procurement) across enterprises to create Information Technology value. However, it is not clear how IT is contributing to value creation across-organisation process. The objective of this paper is to investigate the process from e-supply chain capability generation to IT value creation through e-business process across-organisation. A model of e-supply chain value is developed to investigate what and how e-supply chain capabilities are realised by usage of inter-firm IT resources integration and how business value of IT is co-created in multi-firm environments. The paper tests the model using Structural Equation Modelling (SEM) with data collected from 196 manufacturers in China. Our results provide theoretical support for a dynamic process that distinctive e-supply chain capabilities embedded in e-business process lead to process performance first and then financial performance and network performance. We find that new e-supply chain capabilities (ESCC) act as integrated process enablers between upstream and downstream e-business process to realise e-supply chain value for all partners (e.g. supplier and customer). Keywords: e-business process, e-supply chain capabilities, inter-firm IT resources and e-supply chain value.

2 Introduction Over the last decade, e-business technologies, specifically the Web, have revolutionised supply chain design, management, and control. IT infrastructure, process integration and partner alignment can be blended with inter-organisational processes to develop higher-order capabilities for demand sensing, operations and workflow coordination, and global optimization of resources (Barua et al 2004; Devaraj et al 2007; Rai et al 2006; Wu et al 2006). The firms have engaged in initiatives that link e-supply chain processes (e.g., e-procurement) across enterprises to create IT value (Boone et al 2007; Dong et al 2009). Consider the example of Haier Group (a world’s fourth largest white goods manufacturer company and one of the world’s top 500 companies in China), which has automated and streamlined to seek its best suppliers in a globally competitive market with e-procurement platform, and processed customised orders with B2C platform. The effect of e-supply chain on Haier can be seen from their cycle times from sales order to procurement order being reduced, and from more than seven days in 2000 to less than one hour in 2002 (Li et al, 2004). Despite the widespread adoption of e-business, it is not clear how IT is contributing to value creation in supply chain. There are a number of factors that we accept as important and necessary conditions in the chain of IT value creation (Kohli and Grover, 2008). From a resource-based


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perspective, prior literature has identified that e-supply chain capabilities can serve as a catalyst in transforming IT-related resources into higher value for a firm (Devaraj et al 2007; Rai et al 2006). The thesis has expanded to examining complementary resources, capabilities and other mediating factors in the chain of IT value creation. However, it is unclear how IT value emanates from digital capabilities in across-organisation process. It raises important new issues of co-create value from IT in across-organisation process that cannot easily be addressed by current IT value research. This paper investigates the process from e-supply chain capability generation to IT value creation through upstream and downstream e-business process. In this paper, the IT value cocreation in e-supply chain is viewed as that new e-supply chain capabilities (ESCC) drive value cocreation via e-business processes linked with different partners. We regard e-supply chain value as business value of IT, which consisted of process performance, financial performance and network performance. The model of e-supply chain value is proposed and tested using SEM with data collected from 196 manufacturing firms in China. Our results provide theoretical support for a dynamic process that distinctive e-supply chain capabilities embedded in e-business process lead to e-Supply Chain Value creation, which appears process performance first and then financial performance and network performance.

3 Literature Review Traditionally, IT impacts in the context of supply chain management (SCM) have been investigated with a focus primarily on specific technologies and innovations linked with partners, such as e-business (Boone et al 2007), electronic data interchange (EDI) (Chatfield et al 2000), and other inter-organisational information systems (IOS) (Iskandar et al 2001). Recent studies using Resourcebased view of the firm (RBV) as a theoretical base have focused on the relationships between resources, capabilities and business value (Kohli and Grover, 2008). These researches can be divided in two streams. The first stream of research suggests that a firm’s overall e-supply chain effectiveness is determined by its investment in e-business for creating unique Internet-enabled capabilities (Barua et al 2004; Dong et al 2009). For example, Barua et al (2004) study firms’ abilities to deploy three resources - IT, processes, and readiness of customers and suppliers - to create business value. Their empirical results show that online informational capabilities have a positive impact on operational and financial performance. The second stream of literature suggests that firms derive e-business benefits through intermediate business processes (e.g., e-procurement, CRM) (Ray et al 2005). Ray et al (2005) argue that adopting the effectiveness of business process as a dependent variable is a more appropriate way to test resource-based logic than adopting overall firm performance as a dependent variable. For these reasons, it is important to focus on process performance as a feasible path to e-business value. Also, this perspective is used for analysing e-supply chain integration, e.g., Rai (2006) and Barratt and Oke (2007). However, the literature is scarce with studies of the complex process regarding co-creating business value of IT in e-supply chains. Prior works lack research for these intermediate factors forming the linkage and impacting business value of IT in supply chain.

4 Research Model and Hypothesis In this paper, we use RBV together with e-business process view to explain how focal firm and partners’ IT resources integrated in across-organisation process applications to create e-supply chain capability and further gain co-creation value. The research model of e-supply chain value will be developed to investigate the process of e-supply chain capabilities generation and e-supply chain value creation. We characterise this model with three dimensions and six constructs. The definitions of constructs in the model are summarised in Table 1. These dimensions include Inter-firm IT Resources Integration, e-Supply Chain Capability and e-Supply Chain value.

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In order to study in depth the process from e-supply chain capability generation to value creation through e-business process, we divide the process into three stages: (1) Generation of e-supply chain capability; (2) Creating e-supply chain process performance; (3) Generation of e-supply chain value. A series of hypotheses are developed to test the relationships between constructs. Table 1. Definitions and Constructs in the Model Construct

Definitions

References

Internal IT Resources Integration (IITR)

The extent to which a firm integrates its Internal -organisational IT resources (including information systems, employees and managers knowledge) to construct e-business processes in e-supply chains for online information sharing and transaction execution across the value chain.

Melville et al (2004)

Partner Resources ( PR)

The degree to which a firm’s partners (e.g., suppliers, retailers and customers) are willing and ready to conduct business or service activities electronically via e-business processes in e-supply chains.

e-Supply Chain Capability (ESCC)

The ability that a firm uses e-business technology to share information and accomplish transaction and coordinate activities electronically with partners (e.g., suppliers, retailers and customers) through e-business processes in supply chains (e.g., e-procurement, e-ordering, and CRM). In this paper, e-Supply Chain Capability consists of three parts in upstream and downstream supply chain. They are called e-Procurement capability (EPC), e-Ordering Capability (EOC) and e-CRM Capability (CRMC).

Zhao et al(2008)

IT value at e-supply chain process level and emanates from e-supply chain capabilities via e-business process. In this paper, Process Performance consists of three parts in upstream and downstream supply chain. They are called e-Procurement Process Performance (EPPF), e-Ordering Process Performance (OPPF) and CRM Process Performance (CRMPF).

Dong et al (2009) Dehning et al (2007)

Financial Performance (FPF)

Improvement in financial performance attributable to e-supply chain applications

Barua et al (2004) Dehning et al (2007)

Collaborative Network Performance (CNPF)

Aggregate performance t of collaborative network in e-supply chain

Straub et al (2004)

Process Performance e-Supply chain value

Melville et al (2004)

Creating E-Supply Chain Capability In this stage, the generation of e-supply chain capability (ESCC) is related to usage of inter-firm IT resources integration via e-business process. Melville et al (2004) ague the IT and non-IT resources and the business processes of electronically connected trading partners shape the supply chain ability to generate operational efficiencies impacts via IT. In this paper, Inter-firm IT resources integration includes Internal IT resources integration for focal firm and Partner Resources for supply chain partners. Concerning Internal IT resources integration, prior SCM studies have realised that IT technology contribute to e-supply chain capability(Rai et al 2006; Wu et al 2006), For an organisation with a high level of information systems, it should be able to transmit, combine and process data from business partners, such as, suppliers/vendors. As noted by Wu et al (2007), the organisational learning ability associated with IT professional knowledge is positively related to the use of both coordination and transaction e-procurement applications capability (Wu et al 2007). Together these studies suggest the critical role of IS integration technology and IS application


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knowledge in improving the effectiveness of e-supply chain capability in their e-procurement, e-ordering, and CRM. This leads to the following hypothesis: 1. H1: Internal IT resources integration in focal firm has a positive impact on the level of e-procurement capability. 2. H2: Internal IT resources integration in focal firm has a positive impact on the level of e-ordering capability. 3. H3: Internal IT resources integration in focal firm has a positive impact on the level of CRM capability. Electronic integration of supply chain processes across organisations requires the development of IT resources by both the focal firm and its trading partners (Melville et al 2004; Zhao et al 2008). Hence, partner resources support (includes suppliers, retailers) is considered an external resource to support process connection (Dong et al 2009) and develop e-supply chain capability from collaborative partner relationship perspective (Dewan et al, 1998). Even if a firm has the necessary IT applications to do business online with customers and suppliers, a lack of partner’s readiness on the part of customers or suppliers will impede the adoption of the technology and IT value creation (Barua et al 2004). Thus, we hypothesize the following: 1. H4: Partner resources have a positive impact on the level of e-procurement capability. 2. H5: Partner resources have a positive impact on the level of e-ordering capability. 3. H6: Partner resources have a positive impact on the level of CRM capability.

Creating E-Supply Chain Process Performance In this paper process performance refers to inter-organisational IT-based value co-created by e-supply chain capabilities via upstream and downstream e-business processes. More and more literatures suggest that process performance should be considered as a critical competitive power measurement in recent SCM studies (Dehning et al 2007; Dong et al 2009). e-Supply chain capability can improve process performance in operations by sharing key planning and schedules information and coordinating fulfilling orders and customer services (Dehning et al 2007; Gunasekaran et al 2004a). From e-supply chain process level, it is optimal perspective to take an in-deep look at co-creation value emanates from robust collaborative relationships among firms. Therefore, we propose the following hypotheses. 1. H7: e-Procurement capability has a positive impact on e-procurement process performance. 2. H8: e-Ordering capability has a positive impact on e-ordering process performance. 3. H9: CRM capability has a positive impact on CRM Process performance.

Generation of E-Supply Chain Value In this paper, generation of e-supply chain value combines two relationships between process performance, financial performance and collaborative network performance. On the one hand, focal firm can capture effects of e-supply chain process performance improvement to the direct overall firm financial performance. On the other hand, through e-supply chain process integration and collaboration, focal firm also improves collaborative network outcomes together with their partners to gain new competitive advantages. E-Supply chain can improve financial performance in operations by coordinating marketing forecasts, production schedules, and inbound logistics through the availability of enhanced informational support for operations planning and control resulting in reduced levels of workin-process and higher capacity utilisation (Gunasekaran et al 2004b). It may be important to simultaneously consider measuring the full direct impact of e-supply chain process use on financial performance. Therefore, we propose the following hypotheses.

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1. H10: e-Procurement process performance has a positive impact on firm financial performance. 2. H11: e-Ordering process performance has a positive impact on firm financial performance. 3. H12: e-CRM process performance has a positive impact on firm financial performance. In this paper, co-creation of value focuses on overall e-supply chain operations effectiveness due to each firm in this network benefits from such relationships. Collaborative network performance can be associated with e-supply chain has recently been demonstrated by Straub et al (2004). They argue that degree-symmetric information sharing and dependence in e-supply chain are positive related to networked organisational performance. The greater the degree of process applications between partners via e-supply chain, the greater its share of net value from deployment of the usage. This leads to the following hypothesis: 1. H13: e-Procurement process performance has a positive impact on collaborative network performance. 2. H14: e-Ordering process performance has a positive impact on collaborative network performance. 3. H15: e-CRM process performance has a positive impact on collaborative network performance.

5 Research Methodology Data Collection This study used the survey method to collect primary data from senior IS managers and business managers of manufacturing firms in China. A five-point Likert scale (from very well to very bad) was used to collect most responses. The data collection involved manufacturing firms engaged in e-supply chain that had the ability to interact with suppliers and customers over the Web. During the whole process, we have sent out 600 surveys and received 233 back. Ten responses had too many missing data and were discarded. Twenty-seven companies were discarded because they didn’t adopt information systems for SCM except Internet access. There were 196 usable responses and the usable response rate was about 33%. In the sample, 65% of firms belong to traditional manufacturing group, such as China Petroleum & Chemical Corporation (Sinoper), Shanghai Volkswagen and Honda China. About 35% firms belong to high-tech manufacturing group, example include Lenovo, Samsung China, Benq, Foxconn, Chinabird, Huawei and et al We found no significant differences of organisational size and sales in the two groups by using one-way ANOVA.

Data Analysis A covariance-based Structural Equation Model (SEM) analysis was used for data analysis. Exploratory factor analysis (EFA) was first conducted using SPSS 16.0 to validate the proposed factor structures. EFA showed the presence of ten factors in the data and the factor structures matched the ones we identified in the research model. The results of measuring IT related resources and e-supply chain capability represented two and three factors solution with 64% and 77% cumulative percent of variance extracted respectively. These items employed in multi-level performance revealed five factors with 85% cumulative percent of variance extracted. The values of KMO are all above 0.85 with significant Bartlett’s test of sphericity at 0.05 levels. The factor structures suggested by the EFA match the one proposed in the research model. Next, confirmatory factor analysis (CFA) was conducted to check the reliability and validity of the measurement model using Lisrel.8.72. Construct reliability was measured using Cronbach’s alpha and composite reliability. The Cronbach’s alpha ranges from 0.79 to 0.92 for the 10 constructs, indicating a high internal consistency (Straub et al 2004). Further, composite reliability was evaluated and found to be similar, based on which we may conclude that the reliability for these


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constructs is adequate (Straub et al 2004). Convergent and discriminant validities were examined by both factor loadings and a correlation matrix. All estimated standard loadings are significant (p