The Effect of Supply Chain Management Practices on Competitive Advantage of Habesha Brewery S.Co
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Date
2017-05
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Addis Ababa University
Abstract
Supply chain management (SCM) is the means by which firms engaged in creating, distributing, and selling products, can join forces to establish a supply network with an unbeatable competitive advantage-has emerged as one of the most powerful business- improvement tools around Companies all over the world are pursuing supply chain as the latest methodology to reduce costs, increase customer satisfaction, better utilize assets, and build new revenues. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and internal lean practices) and tests the effect of SCM practices on competitive advantage of a firm. The data for the study was collected from 80 employees of Habesha Brewery S.CO. The relationship.ps proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis it is concluded that there is strong relationship between SCM practices and overall Competitive advantage with Pearson correlation coefficient 0.864 (r=0.864) and significance value less than 0.001. Besides, SCM practices have an influence on overall competitive advantage. Therefore, in order to achieve advancement in marketing and financial performance in the long-run through enhancing overall competitive advantage, it is better for the organization to give due emphasis to the constructs of SCM practices
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Keywords
supply chain management, overall competitive advantage, Pearson correlation