Upstream Supply Chain Integration In Ethiopian Brewery Sector: The Case Of Bgi Ethiopia Plc.
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Date
2020-06
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Addis Ababa University
Abstract
The objective of this study was to assess the Upstream Supply Chain Integration in Ethiopian
Brewery Sector by taking the case company, BGI Ethiopia Plc. To carry out this task an
explanatory type of research design was adhered. The target populations were upstream BGI
Ethiopia partners & Supply Chain staff, and their total number were 860( 851 suppliers and 9 BGI
staff) out of which a sample size of 274 ( 265 suppliers and 9 BGI staff) units has been determined.
Whereas, a clean response of 235 questionnaires were effectively used for analysis that shows
response rate of 85.8% .The major findings of the study indicates that the practice of upstream
supply chain integration in the case company is very weak. Very few variables of the upstream
supply chain integration considerations were practiced. These include the accuracy of
information sharing (mean value of 2.76), operating with supply contract/commitment (mean
value of 2.5), and informal & personal relationship (mean value of 2.9). The Pearson correlation
analysis result indicated that there were positive relationship between all of independent
variables and the dependent variable. Furthermore, the linear regression model revealed that out
of the four predictors the two predictors organizational relationship linkage (b coefficient 0.63)
& management commitment (b coefficient 0.48) has been founds as a predictor variables that
have got high level of intensity to influence the response variable, upstream supply chain
integration. Finally, the researcher recommended that getting organizational legal ground
through the inculcation of upstream supply chain integration in the sourcing policy and
procedure is the foundation work which should be accompanied with continuous learning, and
sourcing reform.
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Keywords
upstream supply Chain Integration, Information Integration, Coordination & Resource sharing, Organizational relationship linkage, Management Comment.