Abstract

The main objective of this research was to investigate the effects of supply chain integration on competitive advantage and organizational performance in the food complex industries in Asella town. A cross-sectional survey research design was employed in this study. The population of interest comprised of all suppliers (farmers and farmers cooperatives), employees, customers, wholesalers and retailers were involved and multistage sampling was employed and 234 sample size was used. Structured questionnaire was used to collect primary data. Data was collected and analyzed using SPSS package, Descriptive statics, inferential statics and correlation to describe and analyze the extent of supply chain integration and its effects on competitive advantage and organizational performance. The study revealed that supply chain integration (supply chain responsiveness, strategic partnership, supply chain information, customer relationships) positively affects the competitive advantage and organizational performance. The study also shows that food complex industries supply chain integration were poor in improving company’s competitive advantage and organizational performance. The study recommends that the actors of the food complex industries should foster and customize of managing their supply chains as this has a direct influence on competitive advantage and organizational performance. Keywords: supply chain integration, competitive advantage, organizational performance DOI: 10.7176/IEL/11-2-03 Publication date: June 30 th 2021

Highlights

  • Chain management has become an important focus of competitive advantage and best strategies to enhance performance for business organization

  • In this study the first and second highest influence on the organizational performance were by strategic partnership and level of information sharing factors, with Beta value of 0.762, and 0.614, respectively

  • In this study the first and second highest influence on the competitive advantage were by supply chain responsiveness and strategic partnership with Beta value of 0.751, and 0.662, respectively

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Summary

Introduction

Chain management has become an important focus of competitive advantage and best strategies to enhance performance for business organization. The understanding and practicing of supply chain management (SCM) has become an indispensable prerequisite for staying competitive in the global rivalry and for enhancing organizational performance. The management of supply chain study emphasizes how to maximize the overall value of the firm by better using and deployment of resources across the whole of the firm (Levi (2004). Effective supply chain management is important to build and sustain competitive advantage and organizational performance in product and services of the firms. According to Sufian (2010) to achieve a competitive advantage and better performance, supply chain management strategy need support the business strategy. As Hoover et al (2001) stated having competitive products and the right supply chain for the average customer is not enough in the current business environment. Customer relationships combining with a firm’s operation and customers’ operation, makes up a demand –supply chain

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