Employees’ Perspective On The Effect Of Supply Chain Management Practices On Organizational Performance: The Case Of Anbessa Shoe Share Company (ASSC)
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Date
2017-06
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Addis Ababa University
Abstract
In today’s emerging competitive environment, the ultimate success of the business depends on management’s ability to integrate the company’s intricate network of business relationships. Supply Chain Management is one of the most significant changes in the paradigm of business management that has the potential to make or break a company. Effective supply chain management (SCM) has become a potentially valuable way of securing positive returns for the organization performance since competition is no longer between organizations, but among supply chains. The general objective of this study is to examine the effect of SCM practices on organizational performance with special emphasis on the case company Anbessa Shoe Share Company (ASSC). The study conceptualizes and develops four dimensions of SCM practices: (Supplier Relationship Management, Customer Relationship Management, Information Sharing Practice and Information Technology Adoption Practice) and their effect on organizational performance (Financial as well as market perspectives). The study involved a survey design. A primary data were collect using a closed-ended questionnaire instrument. The data for the study was collected from 102employees of ASSC particularly those who have knowledge about the supply chain management practice using probability sampling particularly stratified sampling technique. The gathered data analyzed using descriptive analytical technique with the help of Statistical Package for Social Sciences (SPSS version 20). The relationships proposed in the framework were tested using Pearson correlation, and the effect of SCM practices on Organizational Performance was analyzed using regression analysis. From the result of the analysis it is concluded that there is a significant positive relationship between SCM practices and organizational performance. Therefore, in order to achieve organizational performance in marketing and financial perspectives in the long-run, it is better for the organization to give due emphasis to SCM practices
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Keywords
Supply Chain Management, Supply Chain Management Practice, Organizational Performance