The Impact of Supply Chain Management Strategy practices on the Performance of Business Organization (Case study on Ambasel Trading House P.L .C)
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Date
2023-02-09
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A.A.U.
Abstract
Supply chainManagement has become a valuable way of securing competitive advantage by continuously involving and engaging in SC strategy practices which resulted with continuous improvement on organizational performances since competition is no longer between organizations, but among supply chains. This study was conducted with an objective of assessing the impact of supply chain management strategy practices on the performance of business organizations and assessing the level of awareness and understanding of SCM concepts and practices in business organizations in Ethiopian context, specifically on business organizations like the case company. The research was conceptualized and developed on Seven construct of SCM strategy practices (CRM, SSP, QIS, LIS, ICT, LOG and TMT decisions) and examined the cause- effect relationships of SCM Strategy practices in the SC on organizational performance of business organizations in Ethiopian context. .This research is descriptive in its type and the researcher employed both qualitative and quantitative (Mixed) methods to examine the research problems and to investigate the cause-effect relationships between known variables and utilized survey of self-administered questionnaires in which the collection of data from the respondents was car-ried out only once by using purposive sampling technique and quantitative data were analyzed using the statistical package for social sciences (SPSS) and E-views in some cases to arrive at the major findings. The relationships proposed in the framework and the hypotheses were tested and the data was analyzed using frequency, mean, Pearson correlation and the findings were sometimes presented by tables and the causal relations were analyzed using regression analysis. The test result revealed that there were strongly positive (direct) and statistically significant relationships between (CRM, SSP, LIS, ICT and TMT decision) and organizational performance in the case company. However, QIS and LOG exhibited negative and statistically insignificant relationship with performance. The study also assessed that there was an awareness and under-standing that supply chain management practices influence/affect organizational performances of business organizations. Therefore, in order business companies to achieve their market share, profitability, return on investment and other performance objectives and goals in the long-run, its recommended for the organization to give due emphasis to the constructs of SCM Strategy and include SCM strategy as one of its performance improving management systems.
All the Seven constructs, supply chain management Strategy, supply chain performance and organizational performance