Investigation on the Effect of Supply Chain Integration on Ethiopian Garment Industry‟s Performance

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Addis Ababa University


This thesis paper makes an investigation on the effect of supply chain integration (Supply, internal, and customer integration) on Ethiopian garment industry’s performance with regard to product quality and competitive advantage. The main objective of this paper is to explore the effect of supply chain integration on Ethiopian garment industry’s performance and provide a recommendation in order to improve the product quality and competitive position performance of the sector. The study discusses different concepts on supply chain integration, product quality, and competitive advantage. In order to undertake this research, a sample size of 29 out of 41 garments in the country, which represents 62% of the total garment industry, was drawn. Primary type of data was collected with the help of questionnaires and personal interviews. Additionally, secondary data was also gathered using previous research works in the sector and different documents. The collected data was analyzed using spearman’s correlations in order to examine the relationship between supply chain integration and the garment’s performance. Finally the research comes up with the following findings. Customer integration and internal integration have a stronger effect on product quality than the effect of supply integration on product quality. Supply integration and customer integration have positive and strong effect on competitive advantage. However, internal integration has positive but weak effect with competitive advantage. Keywords: Supply integration; Customer Integration; Internal integration; Product Quality; Competitive Advantage



Supply integration, Customer Integration, Internal integration, Product Quality, Competitive Advantage