An Assessment of the Effect of Supply Chain Management Practices on Organizational Performance in the case of Modern Building Industries PLC
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Date
2017-05
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Addis Ababa University
Abstract
The main purpose of conducting this study was to investigate the understanding, practical implementation of Supply chain management practices towards organizational performance in Modern Building Industries PLC, a member of MIDROC Technology Group. Five key dimensions of Supply chain management practices (strategic supplier partnership, customer relationship, quality and level of information sharing and lean practices) were used as independent variables accompanied by different measurement instruments under each variable, while market and operational/financial performance variables were used to measure the organizational performance. Data were obtained via questionnaires from a sample of 121employees which worked in different functional area. Quantitative methods were applied to analyze data. Chi-square test was used to assess the understanding and practical implementation of Supply chain management practices in Modern Building Industries PLC, while Spearman’s correlation and Kruskal Wallis test were used to examine the relationship between supply chain management practices and organizational performance. From the study findings, it showed majority of Modern Building Industries PLC employees not understood the concept of implementing Supply chain management practices. The level of practical implementation was at moderate extent. In addition to organizational performance, the result showed that Supply chain management practices of degree and quality of information sharing and lean practices were positively related to organizational performance in a weak level, while strategic supplier partnership and customer relationship were not related. Finally the researcher made some recommendations for further studies in the field of supply chain management practices implementation.
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Supply Chain Management, Supply Chain Management Practices, Organizational Performance