The Effect of Internal Supply Chain Integration On Organizational Performance: The Case Of Bedele Brewery

Abstract

Internal Supply chain integration is part of supply chain integration; coordinating and synchronizing the internal functions and interdependent departments to address product and services to end consumer to enhance common benefits. The main objective of the study was to examine the effect of internal supply chain functional On operational performance in BedeleBrewery which is located in Bedele town. The level and practice of information integration, coordination and resource sharing, organizational relationship linkage, perceived benefits of supply chain integration and information technology tools implementation practice were analyzed. The main drivers of this study was those Critical factors of the Internal supply chain integration including; Poor internal information integration and traditional way of communication and lack of trust among internal partners. The studydeployed descriptive research design with representative sample of 175 respondents from the employees and process owners selected through simple random sampling. A self developed questionnairewas adopted from related literatures as well as semi structured interview was used as a research tool for collecting data. The collected data wasanalyze using statistical package for social science version.21 (SPSS) software, descriptive statistics (mean standard deviation and correlation) were the main analysis method.Based on the analysis, the research comes up with the following findings. All independent variables internal integration, customer integration and supplier integration have significant positive impact on operational performance. Finally based on the finding the recommendations forwarded as follow. Beadle Brewery Share Company is better to enhance the extents of integration of the three variables (Internal Integration, ICT/Information Technology, Collaboration& Resource Sharing and Challenges) since these variables help to the improvement of organizational performance.