Abstract:
The purpose of this study is to test the effect of Supply Chain management practices on
Organizational performance. A study on Jimma Zone farmers’ coffee cooperative. In this
study five key dimensions of SCM practices: strategic supplier partnership, customer
relationship, Quality of information sharing, Internal lean practices and training were
used as independent variables complemented by different measurement tools under each
variable, while financial and market performance variables have been used to measure
the organizational performance. Data was collected via questionnaires from a sample of
26 coffee cooperative firms and 179 respondents. Multi-stage sampling design have been
employed in order to choose respondent from target population in which purposive and
stratified simple random/lottery method frame was selected as sampling technique.
Quantitative and qualitative data collection instruments and techniques employed and
data to be gathered and analyzed using descriptive and inferential analytical technique
with the help of SPSS version 20. The descriptive statistics have used to describe, present,
mean, standard deviation to summarize quantitative information. The relationships
proposed in the framework have been tested using Pearson correlation and the effect of
SCM practices on Organizational Performance analyzed using regression analysis. From
the hypothesis test the null hypothesis of SCM dimension: Strategic supplier partnership,
Quality of information sharing, Internal lean practices and training rejected and the
alternative hypothesis which says each variable have a relationship with organizational
performance have accepted. But the null hypothesis of Customer relationship accepted.
From the research finding it was concluded that all dependent variables (Strategic
supplier partnership, Quality of information sharing, Internal lean practices and
training) have a positive effect on farmers’ coffee cooperative except Customer
relationship which have negative effect. As a recommendation for this study, it may play
an important role for managers and coffee cooperative firms through understanding the
effect of supply chain management practice to increase the sales and profits.
