The Effect of Supply Chain Integration Performance in Ethiopian Trading Enterprises

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Addis Ababa University


Supply chain integration is a vital approach to enhance the various aspects of operational performance. The main target of the study is to assess the effects of supply chain integration on operational performance in Ethiopian trading enterprise. The process of integration has many touch points with multiple functions within the company and these functions need to be integrated in order to provide better performance to the company and service to the customer. In order to undertake the study, problems related to lack of alignment among departments, problem of reordering based on the need of market due to lack of coordination with demand forecasting which leads to backlog delay, lack of integrated information system and lack of well organized structure which is critical for integration were the critical forces which lead this study into the forefront. An explanatory research design was employed with a sample of 108 employees through stratified sampling. A questionnaire was used as a research tool for collecting data. Baseline data were captured from some informants and from secondary data. The collected data was analyzed using both descriptive statistics (mean & standard deviation) and inferential statistics (correlation and linear regression). Main findings of the study depicts that, there is poor integration along the supply chain as the mean values of the four supply chain dimension (internal integration, customer integration, information integration and supplier integration)were below the minimum requirement(i.e. less than the mean value of 2.5).Moreover, internal integration, customer integration, and supplier integration dimensions of supply chain integration had a significant effect on operational performance of the enterprise in which information integration dimension had failed to signify the effect and needs to include other supply chain variables. Finally, the results on the conclusion entails us that the four research questions developed in this study were considerably rated low by the employees which actually indicates the supply chain integration is not at the required level of its employees. And also, the study recommends proper internal integration, supplier integration and customer integration in order to bring effective operational performance Keywords: Customer integration, information integration, internal integration, operational performance, supplier integration, supply chain integration



Customer integration; information integration; internal integration;operational performance; supplier integration; supply chain integration