Analysis Of Supply Chain Integration Role On Organizational Performance Of World Food Programme Ethiopia Office
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Date
2018-06-05
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Addis Ababa University
Abstract
Supply chain integration practices are considered a powerful weapon to optimize performance of the organization. The objective of this study was to analyze the supply chain integration role on organizational performance of the World Food Programme. Analysis of the supply chain integration dimensions require determination of major components: external integration, internal integration, supplier integration, customer integration, information integration and measurement integration. The problems of uncertainty, longer lead and cycle times, high inventory level, inefficiencies and ineffectiveness in today’s supply chain were the critical factors that initiated this study for investigation. Both descriptive and an explanatory research design was employed with a sample of 110 employees through census that was 89% of the response rate. A questionnaire was used as a research tool for collecting data. Available data on these factors was gathered, formatted, processed and thoroughly checked for continuity and consistency. The supply chain integration and organizational performance data were infilled using the Five Point Likert-Scale while the Cronbach Alpha was used to check the data for reliability of measurement scale. The relationship between independent variables (supply chain integration) and dependent variables (organizational Performance) are also cross-checked from Pearson correlation matrix. To predict organizational performance from supply chain integration dimensions, such as external integration, internal integration, supplier integration, customer integration, information integration and measurement integration, the multiple linear regression model were adopted. The analysis indicated that the independent variables, supply chain integration with respect to the six dimensions (external integration, internal integration, supplier integration, customer integration, information integration and measurement integration) explained 36.4% variance on organizational performance. Out of the six independent variables, three of them (external integration, information integration and measurement integration) were statistical significant with p-value of less than 0.05 whereas the remaining three (internal integration, supplier integration and customer integration) were statistical insignificant with p-value greater than .05. The study concluded that the three independent variables (internal integration, supplier integration and customer integration) were rated low relatively to the others (external integration, information integration and measurement integration); this implies that these dimensions of supply chain are not at the optimal level in the organization. It is recommended that all the six dimensions of supply chain (external integration, internal integration, supplier integration, customer integration, information integration and measurement integration) should have to be integrated at the optimal level through system automation, framework agreement and relationship management in order to be an efficient and effective organizational performance
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supply, integration, external