The Effect of Supply chain Integration on Export Performance of Ethiopian Garment Industry:

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Date

2020-06

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Addis Ababa University

Abstract

Supply chain integration has a significant role in the manufacturing industry. The focus of this study is to investigate how supply chain integration affects the export performance of Bole Lemi Industrial Park (BLIP). Key dimensions of supply chain integration considered are internal integration, customer integration, and supplier integration. A sample of 120 employees are drawn using systematic random sampling from all garment producing firms in the BLIP. A structured Likert Scale questionnaire is employed to collect data from the sample respondent. The reliability test is employed to check the Cronbach’s alpha on each item. Descriptive and inferential statistics are used to explore and predict how to export performance is affected by the supply chain integration dimensions - internal integration, supply integration, and customer integration. All explanatory variables - internal integration, supply integration, and customer integration – are found to be statistically significant with p< 0.05. The result shows that all dimensions of supply integration significantly affect the export performance of the park. The study suggests that working on customer relationship management, building interdepartmental functioning and communication, and creating a material resource planning (MRP) system that is technology are vital to enhancing export performance.

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Keywords

supply chain integration, internal integration, customer integration, supplier integration, export performance

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