The Effect Of Upstream Supply Chain Collaboration On The Performance Of The Brewery Industries: The Case Of BGI Ethiopia

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Addis Ababa University


Themain objective of this research was to examine the effects of upstream supply chain collaboration on the performance of the brewery industries in Ethiopia with particular reference to BGI Ethiopia. The research is both qualitative and quantitative.This helped the researcher minimise the limitation of one design with the strength of the other. Hypothesis was also developed to provide the research direction and focus. The data was collected from employees and managers of BGI Ethiopia, and supply chain managers of the key domestic suppliers of the case company. The required data for the study was collected through two data collecting tools. These are questionnaire and focus discussion. Due to financial and time constraints, convenience sampling was used to collect the data from BGI Ethiopia located in Addis Ababa. Hence branch industries located in Kombolcha and Hawassa were not included in the study. To collect data from the respondents of the case industry stratified sampling was used. The researcher designed strata based on the functions (departments) and management of the organization. Then simple random sampling was used to select respondents from the strata. The researcher used descriptive and inferential statistics to analyse and interpret the gathered data. The finding of quantitative data gathered from the BGI Ethiopia indicated that upstream supply chain collaboration is strong, but quantitative data obtained from key domestic suppliers of BGI and qualitative data obtained from BGI Ethiopia itself revealed that the collaboration level is at its average level. The research findings indicate that supply chain collaboration is positively related to performance. It was also found out that supply chain collaboration is a statistically significant predictor of the organizational performance of the case company. Based on this and other findings recommendations were suggested.The company under investigation has to maintain its practice especially on information sharing and goal congruence. However, in general, the case company is recommended to make an effort to increase its collaboration practice with the key domestic suppliers.It has to work with its suppliers towards long term, strategic and full-fledged form of collaboration. It is suggested that all parties in upstream supply chain have common understanding, clear vision and objective on how to increase supply chain collaboration and its benefits. It also better they work pooling their resources and inputs.



supply chain collaboration, information sharing, incentive alignment, decision synchronization