Effects of Supply Chain Agility on Organizational Performance: The case of Heineken Brewery in Ethiopia
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Date
2024-06
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Addis Ababa University
Abstract
This study examined the effect of supply chain agility on the organizational performance of Heineken Brewery in Ethiopia. The objective of the study was to assess the effect of alertness, accessibility, decisiveness, swiftness, and flexibility on the performance of the Company. Both primary and secondary sources of data were employed to gather the necessary information. As a primary source of data, structured questionnaire was distributed for 119 respondents to gather the necessary data of which 96 was correctly filled and returned for further analysis. The study used both descriptive statistics and regression analysis (Pearson correlation matrix and multiple linear regression model) to examine which variables significantly affect the organizational performance of the organization. The result of the study indicates that there is positive relationship between the dependent variable organizational performance and the independent variables. In addition, the regression analysis showed that all the variables significantly affect the organizational performance of the company, as perceived by the organization’s employees. Decisiveness is significant at 1 percent significance level with standardized Beta coefficients (β= .279, sig= .001). Whereas, alertness, accessibility, swiftness, and flexibility are significant at 5 percent (95 percent confidence interval) with Standardized beta coefficients (β= .187, sig= .026), (β= .178, sig= .025) (β= .207 sig= .021), and (β= .208, sig= .018) respectively. Therefore, the study concluded that all supply chain agility variables have a direct significant effect on the organizational performance of the organization, with Decisiveness and Swiftness being particularly influential. It is advised that the Supply chain and logistics department prioritize these key drivers to enhance overall performance. This can be achieved through the development of streamlined processes that facilitate prompt decision-making, and improvement of the capability to quickly implement changes in supply chain operations and tactics. It is imperative for the Supply chain department to concentrate on these dimensions to enhance their overall Agility.
Key Words: Supply Chain Agility, Organizational Performance