upply Chain Integration for Enhancing the Growth Level of Small and Medium Weaving Enterprises (SMWE); A Case of Hand Loom Weaving Enterprises found in Addis Ababa

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Date

2019-07

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Addis Ababa University

Abstract

Micro, Small and Medium Enterprises (MSME) development in Ethiopia has prioritized by the government; for economic growth, employment generation and building an industrial economy and also they are taken as a vital tool in achieving the country’s mission to become a middle-income country by 2025. The handloom weaving enterprises had one of the enterprises provides hope for the government to achieve this target as one of the growth oriented enterprise. In the contrary the enterprises has registered very stagnant growth level as compared with construction and urban- agriculture. Therefore, the purpose of this study is to suggest ways of enhancement for the level growth of Small and Medium Waving Enterprises (SMWE) through Supply Chain Integration (SCI); additionally the study shows the government supports role on the enterprises growth level in terms of SCI. In order to conduct this research, questionnaire was developed and distributed for 20 respondents in ten enterprises(two questionnaire for each enterprises top managers) and all the questioners were collected by using schedule data collection method; beside the questioner interview also conducted with experts to supports the findings from the questionnaire. Then the collected data was analyzed using IBM SPSS 20; in both descriptive and inferential statics. Regarding the descriptive statistic the major finding shows; the current integration level of the enterprise (both internally and externally with their supplier and customers) is very weak and the major factors are lack of trust and collaboration between supply chain actors, so many small transaction in the whole supply chain, lack of top management commitment, poor communication and information sharing, and not have awareness about supply chain integration. Regarding the correlation, it is possible to conclude that there is a strong and positive relationship among the three supply chain integration dimensions and also the dimensions (SCI as whole) with governments support has a strong and positive relation with enterprise growth. But the regression statics excludes the supplier integration because of its statistical insignificance (P> 0.05), however the final model include the supplier integration, after conducting the model validation process; as the result of the expertise suggestion, correlation analysis and criticality of the supplier integration for the SMWE growth. Finally the study develop a model and recommended the enterprises to have proper internal integration, supplier integration and customer integration strategies with the proper utilization of governments support in order to enhance their growth.

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Keywords

Customer integration, Internal integration, Supplier integration, supply chain Integration (SCI), SME growth, weaving, Governments support, Key Growth Indicator (KGI)

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