The Effect Of Supply Chain Management Practices On Organizational Performance: In The Case Of Awash Wine S.C, Ethiopia
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Date
2018-06
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Addis Ababa University
Abstract
The interest in managing supply chains had grown rapidly among companies around the world.
Many companies had moved aggressively to implement and improve on supply chain management
practices with the hope of enhancing revenue, profitability, control costs and asset utilization, as
well as lead to market share growth. However, these companies had not been able to formulate the
right strategies required to achieve this task and this had affected negatively the performance of
most organizations, therefore, the study investigated the effect of supply chain management
practices on performance with reference to Awash Wine. The objectives of the study were to
establish the effects of Strategic Supplier Partnership, Customer relationship, Level of Information
Sharing, Quality of Information Sharing and Internal Lean Practices on performance at Awash
Wine S.c. A survey was conducted by drawing a sample size of 75 employees from a target
population of 100 employees using the Fisher’s model through stratified sampling technique. The
researcher used structured questionnaires to collect data. 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 four Supply Chain
Management Practice constructs (Customer relationship, Level of Information Sharing, Quality of
Information Sharing and Internal Lean Practices) have positive and significant influence on
Organizational Performance. Whereas, Strategic Supplier Partnership has not statistically
significant to influence Organizational Performance. Therefore 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 on Supply Chain Management
practices
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Keywords
Supply Chain Management practices, Organizational, Performance