Analysis of Supply Chain Integration Role on Export Performance. (Employees Perspective of Anbessa Shoe S.Co.)

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Date

2019-05

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Addis Ababa University

Abstract

Supply chain integration practices are considered a powerful weapon to optimize varied company performance endeavors. The objective of this study was to analyze the supply chain integration role specifically on the export performance of the Anbessa Shoe Share Company. Analysis of the supply chain integration dimensions require determination of major components: internal integration, supplier integration, customer integration. The problems of uncertainty, stiff international competition, longer lead and cycle times, high inventory level, inefficiencies and ineffectiveness in the 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 80 employees through census that was 87.5% 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 export 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 (export Performance) are also cross-checked from Pearson correlation matrix. To predict export performance from supply chain integration dimensions, such as internal integration, supplier integration, customer integration, the multiple linear regression model was adopted. The analysis indicated that the independent variables, supply chain integration with respect to the three dimensions (internal integration, supplier integration, customer integration,) explained 23.2% variance on export performance. Internal integration and supplier integration were statistically significant with p- value of less than 0.05 whereas the customer integration was statistically insignificant with p- value greater than .05. The study concluded that internal integration and linkages with a firm’s suppliers have the most effect on a firm’s export performance, where it’s the internal integration significantly affects export performance and competitiveness. It is recommended that all the three dimensions of supply chain (internal integration, supplier integration, customer integration) should have to be integrated at the optimal level in order to be an efficient and effective export performance

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Keywords

supply, chain, integration, external, , internal, supplier, customer,, information, measurement, and performance

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