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