Supply chain management success factors in Nigerian commercial banks

Supply Chain Management (SCM) is taking deep roots in banking owing to the increasing deployment of banking logistics and equipment. In view of this, effective supply chain management in commercial banks is critical. This study, therefore, seeks to identify the supply chain management success factors in the Nigerian banking sector. To achieve this, a quantitative research approach was used. The population for this study is the 433 administrative employees in the supply chain departments of the head offices of the top ten banks in Nigeria, according to the “Financial Times” group of London's 2016/2017 rankings. Based on this population, the sample size was determined using Krejcie & Morgan's (1970) formula to be 204. A randomly self-administered questionnaire was used to collect data. This questionnaire was built on a five-point Likert scale. A total of 105 completed questionnaires were deemed appropriate for data analysis. This represented a response rate of 51.4%. The data was analysed using SPSS version 21. Exploratory factor analysis was used to reduce the dimensionality of the success factors and the dependent variable, while multiple linear regression was used to model the relationship between SCM success and the six identified factors. Results indicated that planning, motivation, management commitment, SCM staff competency, communication, and benchmarking positively influence supply chain management success in Nigerian banks. Based on this finding, it was recommended that commercial banks enhance their focus on the supply chain success factors identified in this study and take the necessary steps to fine-tune their supply chain management procedures to maximise growth.