The effect of Global Supply chain on firm’s performance: The case of Ethiopian manufacturing Private sector
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Date
2024-10
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Addis Ababa University
Abstract
This study examines the effect of global supply chains (GSCs) on productivity within the Ethiopian manufacturing sector. Utilizing a mixed method approach, data were gathered from 15 manufacturing firms in Addis Ababa, combining both qualitative and quantitative methods. The study's explanatory and descriptive research design enabled an investigation of relationships between variables, using primary data collected via structured questionnaires and semi
structured interviews with firm representatives. Secondary data from the Central Statistical Authority provided firm specific productivity metrics, input usage, and additional contextual information. Data were analyzed using descriptive statistics, correlation, and regression analyses to evaluate the impact of GSCs on productivity. The findings indicate that strategic supplier relationships, product diversity, advanced technology adoption, and information sharing significantly influence productivity in the manufacturing sector. The study highlights that foreign inputs of high quality and technological advancement offer potential productivity gains. However, challenges such as supply chain disruptions, geopolitical risks, and managing complex supplier networks remain critical. These results provide insights for manufacturing firms and policymakers to optimize GSC benefits while addressing related risks.
Keywords: Global Supply Chain, Manufacturing, Productivity, Foreign Inputs, Technology Adoption, Ethiopia, Supplier Relationships, Mixed Method Research