The Effect of Supply Chain Integration on Operational Performance: The case of Ethiopian Airlines - Maintenance, Repair and Overhaul (MRO)
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Date
2020-05
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Addis Ababa University
Abstract
In today’s competitive business environment, most of the organizations considered that
supply chain management is one of the most important management tool so as to secure competitive
advantage. It’s obvious that sustainable improvement in operational performance of an organization
enable to take competitive advantage over rivals. The objective of the study is to investigate the effect
of supply chain integration on the operational performance of Ethiopian Maintenance, Repair and
Overhaul. The methodology of the research in which mixed quantitative and qualitative approach
have been employed to gather and analyze data. The study applied questionnaire survey and semistructured interview enquiries, which are adapted from the previous study and then developed by
using pilot study conducted with a selected team before distribution of the questionnaires. The study
used to survey employees and management members working in Ethiopian Maintenance, Repair and
Overhaul. The study applied purposive sampling and respondents who have direct exposure towards
the study have been selected. The quantitative data collected from 157 respondents out of 191 sample
selected; and the qualitative data gathered from four top management member. In reference to the
reviewed literature, a model includes the most commonly used categories of supply chain integration
that are supplier, internal and customer integrations as independent variables; and the operational
performance as a dependent variable in which the well-known dimensions that are cost, quality and
time have been evaluated. The study used descriptive and explanatory research design; data has
been analyzed, interpreted and discussed by using applicable statistical techniques for which
analytical software tool STATA has been used, and also the findings from the interview have been
analyzed, discussed and summarized as well. Descriptive statistics such as frequency, percentage
distribution, mean and standard deviation, and also multiple-linear regression has been applied to
analyze the findings. The result of the findings indicated that positive and significant relationship
between variables of supply chain integration and the operational performance. The independent
variables; supplier, internal and customer integrations are correlated and positively related each
other, and the same is true for the dimensions of operational performance. Supplier integration has
the highest effect on operational performance, then internal integration followed by customer
integration. The result shows supplier integration, internal integration and customer integration are
individually useful in predicting the operational performance of Ethiopian Maintenance, Repair and
Overhaul. Therefore, supply chain integration has a positive effect on the operational performance
of Ethiopian Maintenance, Repair and Overhaul.
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Keywords
Supply Chain Management (SCM), Supply Chain Integration (SCI), Supplier Integration (SI), Internal Integration (II), Customer Integration (CI), Operational Performance