The Effect of Supplier Relationship Management on the Organizational Performance:The Case of Ethio Telecom (Head Quarter)
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Date
2023-06
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Addis Ababa University
Abstract
In business world today organizational competition is no longer among the business activities in entities alone or the firm but along the supply chain. This paradigm shifts to the newly emerging competition environment of supply chain becomes the most important aspect of achieving success. Manager’s role in integrating the important aspects of supply chain plays a vital role to the organizational success. Among the issues in supply chain supplier relationship management is a key activity. Effective supplier relationship management becomes an essential means of achieving competitive advantage. The ultimate purpose of this research paper is to examine the effect of supplier relationship management on the organizational performance at Ethio telecom. Operational performance is used dependent variable while cooperation/collaboration with suppliers, trust based relationship, supplier partnership development, information sharing and supplier quality improvement are the dimensions are the dimensions used as an independent variables. From the total population of 360 employees in the sourcing and supply chain division at the company’s head quarter 187 samples were selected and questionnaires were distributed for primary data collection, but only 163 valid responses were collected back and analyzed using SPSS version 20. A combination of descriptive and explanatory research methods were used to test and analyze the data collected. The results of the study depicts that supplier partnership development performance, supplier quality improvement, trust based relationship and information sharing has positive relationship with operational and affect significantly the overall organizational performance. The results of the regression analysis also show that no significant effect of cooperation/collaboration with supplier on the organizational performance. Hence as revealed in the recommendation of this research, the management of the company need to emphasis on developing supplier partnership and improving the quality of suppliers. Working on creating trust based relationship with suppliers and developing sustainable and realistic information sharing will also benefit the company’s to fill the gap in practicing supplier relationship management.
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Supplier Relationship Management, Operational Performance