Effect of supply chain management practice on organizational performance: A Study on Selected Ethiotelecom Jimma district

Abstract

The main goal of supply chain practice is to produce the right product or service, in the right quantity, at the right time, and at minimal cost to satisfy customer requirements and internal targets as efficiently as possible. The purpose of this study is to examine the effect of Supply Chain management practices on organizational performance in the ethiotelecom, Jimma district. the study used descriptive as well as explanatory research designs. In this study five key dimensions of SCM practices: strategic supplier partnership, the commitment of management, information sharing, customer relationship, and internal integrations practices were used as independent variables complemented by different measurement tools under each variable, while efficiency, effectiveness, and flexibility variables have been used to measure the organizational performance. The data was collected from 235 employees of ethiotelecom, Jimma district by using Likert scale type questionnaires and interviews were used by purposive and stratified simple random/lottery method frame was selected as sampling technique was used to collect data from target populations, Quantitative and qualitative data collection instruments and techniques employed and data to be gathered and analyzed using the descriptive and inferential analytical technique with the help of SPSS version 20. Descriptive statistics have been used to describe, the 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 was analyzed using regression analysis. From the hypothesis test the null hypothesis of SCM dimension: Strategic supplier partnership, the commitment of management, Information sharing, and internal integration variables are rejected and the alternative hypothesis which says each variable has a relationship with organizational performance has been accepted. From the research findings, it was concluded that the result all independent variables (Strategic supplier partnership, commitment of management, information sharing, customer relationship management, and internal integration) and statistically significant and had a positive effect on organization performance). However, the order of contribution in which they impact the organization performance is not the same, for instance, Strategic supplier’s partnerships contributed more towards Organizational performance followed by Customer Relationship Management, Commitment of management and information sharing, and lastly, Internal integrations have a positive implication on the Organizational performance of Ethiotelecom, Jimma district. As a recommendation for this study, to improve the organization performance by supply chain context, the company (Jimma district of ethiotelecom) should work on three things on coordination of peoples, increasing integration of system and working on improvement of process to bring flexibility.