| Abstract: | Supply chain management (SCM) is a key strategic factor for increasing organizational
effectiveness and for better realization of organizational goals such as enhanced
competitiveness, better customer care and increased profitability. Supply chain management
practices (SCMP) are defined as the set of activities undertaken by an organization to promote
effective management of its supply chain. This paper develops a framework showing the effect of
the four constructs of SCMP (strategic supplier partnership, customer relationship, level of
information sharing and quality of information sharing) , and tests the relationships between
SCM practices, competitive advantage and organizational performance. Data for the study were
collected from the firm under study from its head office 51 and 39 respondents from branches
within Addis Ababa. Sample sizes were determined by Krejcie, R & Morgan rule using
purposive sampling technique. Questionnaires administered and were coded and entered the
SPSS. The relationships proposed in the framework were tested using Pearson correlation
coefficient and casual relationships were analyzed using regression analysis. Research findings
indicate that SCM practices have positive effects on competitive advantage and organizational
performance. Further, SCM practices have very strong, positive relationship with competitive
advantage, and weak, positive relationship with organizational performance. With respect to the
relationship of competitive advantage with organizational performance, the study concluded that
there is positive, but weak relationship is resulted. However, in various studies competitive
advantage can have a direct, positive effect on organizational performance. Hence, to strengthen
and move ahead in marketing and financial performance within a period of time through
organizational performance, it is advisable for the firm to give more importance to develop
strategic capabilities to link SCM practices to the dimensions of competitive advantage.
Furthermore, It is highly recommended that a comprehensive research effort be undertaken
having gone through the limitations of this study. |
