Supply Chain Management Practices and Firm Performance in Case of Awash Tannery Plc.

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Date

2014-06

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Addis Ababa University

Abstract

Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage through enhancing operational and improving organizational performances since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and internal lean practices) and tests the relationships between SCM practices, operational performance, and organizational performance. The data for the study was collected from 42 employees of Awash tannery Plc. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. From the result of the analysis it is concluded that there is strong relationship between SCM practices, operational performance and organizational performance. Besides, SCM practices have an influence both on operational performance and organizational performance. On the other hand, operational performance has also an influence on organizational performance. Therefore, in order to achieve advancement in marketing and financial performance in the long-run through enhancing organizational performance, it is better for the organization to give due emphasis to the constructs of SCM practices and the measures of operational performance. Keyword: supply chain management, operational performance, organizational performance

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Keywords

supply chain management, operational performance, organizational performance

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