The Effect of Supply Chain Management Practice on Company Competitiveness: The Case of Ethiopian Airlines Group, Addis Ababa, Ethiopia
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Date
2023-06
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Addis Ababa University
Abstract
This study has been conducted on the effect of supply chain management practice on company competitiveness with the special emphasis on Ethiopian Airlines Group (EAG). The major objective of the study was to assess the effect of supply chain management practice and company competitiveness in EAG. Specifically, the study focused on assessing how internal integration affect competitive advantage for EAG, the impact of customer relationship on EAG’s ability to compete, the effect of information sharing, quality of information on EAG ability to compete, and investigating how Strategic Supplier Partnership affect the EAG's ability to compete. To realize these objectives, the researcher adopted mixed research approach with descriptive research design. Both primary and secondary source and types of data utilized for the study. As primary data collection tools, self-administered survey questionnaires that were measured by Likert scale were used. Semi-structured interviews were also held with six interviewees of each unit representative. The questionnaires were sent for 382 respondents via outlook out of which 370 questionnaires were successfully received/collected. Document analysis was also done to collect secondary data. The collected primary data were presented in tables and analyzed using SPSS version 25. The findings of the study indicate that all variables of the study which include customer relationship, internal integration, information sharing, quality of information and Strategic Supplier Partnership have positive and significant effects on competitiveness of EAG. But data obtained from the interview indicates that upon restructuring of the logistic and cargo group where the finance unit has been structured under it which negatively affecting payment processes that in turn affects customer relationship and strategic suppliers. The study concluded and recommended that since the airline existence, profitability and competitiveness are highly affected by Strategic Supplier Partnership, customer relationship, internal integration, information sharing and quality of information, all stakeholders of EAG need to provide special attentions in the long run by implementing special customer relationship management practice tools, reevaluating the internal integration, creating more strategic alliances with suppliers, partners and advancing the information flow and quality of management.
Keywords: Logistics and Supply chain management, Ethiopian Airlines Group, Company competitiveness
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Logistics and Supply chain management