Abstract
Coordination of different business activities among units becomes vital as organizations pay much attention to their core activities. Thus, their fruitfulness constantly relies on their capacity to coordinate their internal and external activities in the supply chain outside their own boundaries. Giving consideration to these obvious reasons, this paper aims to investigate the determinants of supply chain coordination of milk and dairy industries. The data were collected from 330 milk suppliers, processors, and retailers in the central part of Ethiopia. The structural equation modeling has been employed to develop the structural relationship between key constructs and measured variables. In total, 15 measured variables for coordination in the supply chain have been identified. These are further grouped into four factors namely, non-price coordination, price coordination, relationships and product development decision. It has been observed that the implementation of these factors could maximize the coordination linkage among supply chain members. Thus, dairy sectors should take the identified coordination factors into account in each of their business dealings.Electronic supplementary materialThe online version of this article (doi:10.1186/s40064-015-1287-x) contains supplementary material, which is available to authorized users.
Highlights
As it is clearly seen in the business environment nowadays, effective supply chain management seems to be considered as a crucial concern that has to be dealt with in a global business context (Haghighat 2008)
It applies industry and agriculture led economies, the need of institutionalized supply chain coordination function is indispensable for Ethiopia as it attempts to transform its economy from agriculture to industry
This kind of endurance in such a business environment can only be achieved by means of organized supply chain coordination
Summary
As it is clearly seen in the business environment nowadays, effective supply chain management seems to be considered as a crucial concern that has to be dealt with in a global business context (Haghighat 2008). Poor ways of farming due to lack of coordination between supply chain partners and not being able to find access to market, are the main constraints for the process of effective and efficient dairy production in Ethiopia. With this regard, the gap between the demand and the supply of available processed milk makes the researcher to investigate the major determinants of supply chain coordination in milk and dairy processing industries. The reason is that firms’ supply chain profitability depends on how well all supply chain members work together
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
