The Effect of Supply Chain Management Practices on Organization Performance in The Case of Ethiopian Agricultural Business Corporation-Agricultural Input Supply (EABC-AIS)
Creators: name: Zewdu, Lina
Publisher: name: National Academic Digital Repository of Ethiopia
Year: 2017

description: The study intended to assess the effect of supply chain management practices on organizational performance in terms of market share, return on investment, growth of sales, total profit and overall competitive position of the Ethiopian Agricultural Business Corporation-Agricultural Input Supply. The study, mainly using questionnaire, empirically tested the set framework identifying the relationships among Supply Chain Management practices (strategic supplier partnership, customer relationship, information sharing &amp; quality) as related to their effects on the company's organizational performance. From the total population of 375, it was possible to secure data from sixty-three (63) employees. Questionnaires were used as the main data collection instrument and a pilot study was subsequently carried out to pretest questionnaires for validity and reliability. The validity of the instrument was checked and internal consistency of the instrument was measured using Cronbach Alpha and the result was 89.2%. Using carvalho's sample Size determination method, it shows that the sample is good representative of the population to be studied. Before making multiple linear regression, the study has undertaken several tests. The first test is normality test, the estimation result indicates that, the data set is found to have normally distributed. Secondly, multicollinearity test also conducted using Variance Inflation Factor to check the existence of correlation among the independent variables. The study found that there is no multicollinearity problem. Moreover, to check for serial correlation among the independent variables in the linear model, the study used Durbin-Watson estimation. The estimation result indicates that there is no serial correlation within the data set. Having made these preliminary checking tests, the study conducted multiple linear regression models to evaluate the effect of the four supply chain factors on the organizational performance of Ethiopian Agricultural Business Corporation-Agricultural Input Supply. The overall result from the study indicates that effective supply chain management has tremendous effect on the organizational performance of Ethiopian Agricultural Business Corporation-Agricultural Input Supply. This effect is not however valid or true to all supply chain factors. Level information quality and customer relationship are found to have considerable impact in affecting organizational structure of Ethiopian Agricultural Business Corporation-Agricultural Input Supply. Conversely, Level of information sharing and strategic supplier partnership has relatively lower effect in shaping organizational performance of Ethiopian Agricultural Business Corporation-Agricultural Input Supply. Therefore, Ethiopian Agricultural Business Corporation-Agricultural Input Supply need to give due emphasis in strengthening its supply chain factors in order to enhance and boost its organizational performance, thereby to increase its market share, profit and maintain good competitive position