Introduction 2 NEW
Introduction 2 NEW
Introduction 2 NEW
PERFORMANCE
(The Case of Selected Food Oil Factories in Amhara Region)
DEPARTMENT OF MANAGEMENT
Feburuary, 2023
Addis Abeba, Ethiopia
Contents
Introduction.................................................................................................................................................3
1.1. Background of the Study:................................................................................................................3
1.2. Statement of the Problem.................................................................................................................5
1.3. Objective of the study......................................................................................................................6
1.3.1. General objective.........................................................................................................................6
1.3.2. Specific Objectives......................................................................................................................6
1.3.3. Research Question.......................................................................................................................6
1.4. Significance of the Study.................................................................................................................7
1.5. Scope of the study............................................................................................................................8
1.6. Limitations of the study...................................................................................................................9
REVIEW OF RELATED LITERATURE.................................................................................................10
2.1. Introduction...................................................................................................................................10
2.2. Conceptual Definition....................................................................................................................10
2.3. Theoretical Framework..................................................................................................................11
2.4. Supply Chain Integration...............................................................................................................11
2.6. Demand uncertainty.......................................................................................................................14
2.7. Supply Chain Operational Performance:........................................................................................14
2.8. Organizational performance...........................................................................................................14
2.8.1. Relationship between SCI and organizational performance.......................................................15
2.9. Empirical Reviews.....................................................................................................................16
2.10. Conceptual Framework & Design..............................................................................................18
Research Methodology..............................................................................................................................19
3.1. Research Approach........................................................................................................................19
3.2. Research Design............................................................................................................................19
3.3. Population of the Study.................................................................................................................20
3.4. Sampling Technique......................................................................................................................20
3.5. Sample Size Determination...........................................................................................................21
3.6. Data type and source......................................................................................................................21
3.7. Data Collection Method & Procedure............................................................................................22
3.8. Data Analysis Method...................................................................................................................22
1
3.9. Reliability......................................................................................................................................22
3.10. Validity......................................................................................................................................22
4. Work Plan and Budget.......................................................................................................................23
4.1. Time plan.......................................................................................................................................23
4.2. Budget...........................................................................................................................................23
Conclusion.................................................................................................................................................24
References.................................................................................................................................................25
2
CHAPTER ONE
Introduction
Today the new source of competition lies outside the walls of organizations, and is determined by how
effectively companies link their operations with their Supply Chain partners such as suppliers,
distributors, wholesalers, retailers and end customers Bogale A.(2016). Each firm in a Supply Chain
therefore, directly or indirectly affects the performance of other Supply Chain members, as well as the
overall performance of the Supply Chain. (Sengupta, K., D.R. Heiser, L.S. Cook. 2006).
Kim (2006) measured the level of supply chain integration in terms of a company’s integration with
suppliers, with customers, and cross functional integration within a company and showed the potential
benefits of integrating a supply chain as a basic in accomplishing performance and competitive
advantages (Zhao et al., 2013).
Supply chain integration (SCI) has become increasingly critical for organizational success in the
long run (Huo et al., 2014). In order to survive, firms need to integrate with their suppliers and
customers and have extensive collaboration with them. SCI refers to the strategic collaboration
between manufacturers and their supply chain partners in order to leverage internal and external
resources and capabilities across the whole supply chain (Flynn et al., 2010). Members of the
supply chain work together and collaborate to improve performance, resulting in more
profitability while meeting customer demand (Kumar et al., 2017). SCI has been commonly
recognized as an important factor that positively influences firms’ competitive advantage
(Devaraj et al., 2007). It has proved to have a significant positive impact on firm’s operational
and financial performance (Mohammadi et al., 2014). Supply chain integration is a system that
3
improves all activities which carried out by organization. Supply chain management is a complex
system which covers all supportive activities from suppliers to after sales services. Vaidya and
Hudnurkar (2012) stated that collaboration in supply chain plays a dominant role for improving
organization’s performance and gaining competitive advantage. Cooper, et al. (1997) said that to
utilize the supply chain at its maximum performance level, organizations have to integrate its
goals and activities together. Vaidya, et. al (2012:294) mentioned that supply-chain partners need
to focus on various elements to ensure competitive advantage: price negotiation to increase in
margin, and financial collaboration to ensure innovative product design. Lambert and cooper,
(2000) announced that supply chain management requires integration and coordination for
satisfying and responding to change in consumer demand. Finally, Frohlich and Westbrook,
(2001) pointed out that supply chain integration influences performance.
In this study the relationship between SCI and performance will be investigated from the perspective of
organizational performance. Thus, SCI can be viewed as internal and external integrative capabilities that
lead directly or indirectly to company performance.
Therefore, it seems that its worth to study the role of supply chain integration processes and
activities on organizational performance, so this study will investigates the roles of supply chain
integration on organizational performance for selected food oil factories in Amhara region.
4
1.2. Statement of the Problem
According to Li et al (2006), different organizations have not recognized role of supply
integration on building sustainable competitiveness of their goods and services in an increasingly
crowded market places and enhancing firm performance and overall supply chain performance.
This has resulted in increased attention of managers, consultants and business owners towards
proper supply chain management in business organizations (Tan et al, 2008). The early attempts
of empirical research in SCM have been limited at developing instruments capable of measuring
SCM practices. Most recently, Gibson et al., (2006), Alvarado et al., (2011). They have used
financial and market criteria to organizational performance (return on investment, market share,
profit margin on sales, the growth of return on investment, the growth of sales and the growth of
market share). Also, they investigated the relationship among SCM practices, operational
performance and SCM-related organizational performance. These studies and others have
produced various results due to the performance of the organization subjectively and objectively.
Shepherd and Günter (2006) categorize SC performance measures into five SC processes: plan,
source, make, deliver and return or customer satisfaction, whether they measure cost, time,
quality, flexibility and innovativeness and whether they are quantitative or qualitative measures.
Measures can be categorized according to business processes or into strategic, operational and
tactical management levels. (Shepherd & Gunter 2006).
Measuring supply chain performance is not as such simple as traditionally known sets of
performance measurement that only focuses on financial measures. Frohlich and Westbrook
(2001) investigate the effects of supplier-customer integration on organizational performance;
Gyaneshwar, (2012) study operational performance through SCM Practices and Moslem (2013)
study the impact of supply chain management practices on competitive advantage.
Managing the supply chain has become a way of improving performance by reducing uncertainty
and improving service (Li et al. 2006), and many organizations continue to struggle to
understand the complex issues associated with the coordinated planning and supply chain
integration among members of their supply network (Lori & Daniel 2011). Footwear is an active
product in international markets with a very stiff competitive market, where shoe producers have
a range of costs to manage with a particular focus on raw material and production costs. Other
important costs include regulatory compliance costs, logistics costs, general overheads (such as
utilities) and marketing.
Therefore, for the effort to achieve generalization of the causal relationship between SCM and
firm performance, this paper is to contribute to measure the role of supply chain integration and
organizational performance in the case three well known oil factories.
5
1.3. Objective of the study
In this section, both the general and specific objectives of the study which were analyzed in
the results and discussions part are separately elaborated.
1. To analyze the relationships between supply chain integration and the organizational
performance with the respect to internal, external, information, supplier, customer and
measurement integrations, and non-financial performance (Responsiveness, Reliability,
Flexibility, Quality, Innovation, and Delivery) respectively.
2. Examine the dimensions of supply chain integration with respect to internal integration,
external integration, information integration, supplier integration, customer integration
and measurement integration
3. To assess roles of supply chain integration on organizational performance related to the
internal, external, information, supplier, customer and measurement integrations of
supply chain, and on that of non-financial (Responsiveness, Reliability, Flexibility,
Quality, Innovation, and Delivery) organizational performance (the case of selected
food oil factories in Amhara region).
6
I.3.4. Research Hypothesis
Second, the study will help the management of selected Food oil Factories, specifically
department heads at supply chain management of the organization, in the process of decision
making and organization performance in exporting. The study will provide extensive knowledge
for the researcher on supply chain management practices and their role and impact on
organizational performance.
Third, the study will also benefit for other similar studies both academicians and other
practitioners as a documented in the future. In addition, the final findings of the research paper
will contribute a lot for food oil companies on how to implement better supply chain integration
that will meet their customer satisfaction and more to be productive.
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Key terms and terminologies
Supply Chain:
Supply chain is considered as a system that includes group of activities, processes and sub-
processes such as procurement, operations, transportation, warehousing. It aims to provide the
products and/or services either to consumer or customer starting with purchasing materials and
equipment then transforming it to semi- finished products that will be reprocessed again to
produce the final products. Supply chain management is concerned with the planning and
managing the flow of materials, products and services among and between these processes. The
ultimate goals of managing supply chain is to provide the products at the agreed delivery time,
suitable quality, and competitive price to the customers, and that is reflected by the customer's
satisfaction and the overall organizational performance.
Due to the intense of global competition, the organizations create cooperative and mutually
beneficial relationship among supply chain partners (Wisner and Tan, 2000). Bowersox et. al.
1999, Westbrook and Frohlish (2001), pointed out that organizations or companies need to
implement supply chain integration to meet the new challenges of the global competitive
environment. Many studies propose different supply chain definitions. Rosenzweig, et. al.
(2002), Pagell (2004),and Han & Omta (2007) defined integration of supply chain as a process of
collaboration in which companies work together in a cooperative manner to arrive at mutually
acceptable outcomes. Zhao, et. al. (2008) described supply chain integration as “the degree to
which an organization strategically collaborates with its supply chain partners and manages intra-
and inter-organization processes to achieve effective and efficient flows of products, services,
information, money and decisions, with the objective of providing maximum value to its
customers”.
8
I.6. Limitations of the study
1. Target population willingness are a big challenge to pursued to fill the questioner.
2. The research data will be collected in different areas of Amhara region so the data
collection will be difficult in a short period of time.
3. The expected staff member of the factories may not be available at the right time for the
interview and data collection.
9
CHAPTER TWO
2.1. Introduction
This chapter focuses on the literature review as conducted by the researcher. It includes a review
of the various studies that have been conducted by other researchers relating to the need for
integration of SC partners and the performance of organizations. Among the areas reviewed
include: supply chain integration, supply chain integration and organizational performance, the
drivers of supply chain integration, the benefits of supply chain integration. The chapter also
provides the research gaps identified and a comprehensive conceptual framework
10
Information integration: Information integration refers to the coordination of
information transfer, collaborative communication and supporting technology among
firms in the supply chain Leuschner, Rogers and Charvet (2013).
Supplier integration: Supplier integration is the back down to the suppliers with product
development, flexibility of order of fulfilment, supply of high quality products, process
and specification change information, technology exchange and design support
(Baharanchi, 2011).
Customer integration: The integration of customers in the supply chain is the
opportunity of having an overview of the requirements and customer’s specific needs as
the advantage of serving them better (Lotfi, Z., Sahran, S., & Mukhtar, 2013).
Measurement Integration: It is the performance assessment of the supply chain as a
whole that also holds each individual firm or business unit accountable for meeting its
own goals (Scheinbaum, 2011).
In general, SCI is divided into internal and external integration (Droge et al., 2004; Li, 2015).
Internal integration refers to the level at which the manufacturer organizes its internal activities,
processes, and strategies to meet the needs of its customers (Kahn & Mentzer, 1996). It involves
11
collaboration and coordination across organizational functions through information sharing in
order to better understand and address the needs of its customers (Flynn et al., 2016). External
integration refers to collaboration and coordination between the firm and its external supply
chain partners (Zhao et al., 2013). Previous studies have taken different approaches to
categorizing external integration. One approach divides external integration into supplier and
customer integration, which refers to coordinated and cohesive links between a firm and its
suppliers or customers (e.g., Boon-itt & Pongpanarat, 2011; Fazli & Amin Afshar, 2016; Flynn
et al., 2010, 2016; Hosseini & Sheikhi, 2013; Kim, 2009; Oghazi, 2009).
Another approach categorizes external SCI into product and process dimensions (Fabbe-Costes
& Jahre, 2008; Huo et al., 2014). Product integration refers to the participation of suppliers and
customers in the development of new products (Huo et al., 2014; Khazanchi et al., 2007;
Wagner, 2008). It aims to support the product development activities through close interaction
between the firm and its key suppliers and customers. Process integration refers to the
cooperative and coordinated design and implementation of supply chain processes with suppliers
and customers. The aim is to eliminate non-value added activities and improve the speed and
flow of information, material, and cash flow across the supply chain (Huo et al., 2014; Kim et
al., 2012; Wagner, 2008). In this study, we used the second approach for categorizing external
dimensions of SCI. Thus, we classify integration into internal, product, and process integration.
This classification has several advantages. First, it helps us to address the impact of SCI on firm
performance from an angel that has been less studied before. Previous studies have mainly
focused on integration with suppliers and customers as the dimensions of external integration.
The use of product and process integration in this study allows us to have a unified approach
towards integration with the main partners in supply chain (i.e., suppliers and customers) and
examine the effect of external integration across the whole supply chain instead of examining the
separate effects of integration with suppliers and customers. Furthermore, combining the
relationship with suppliers and customers assists in developing integrated strategies across the
whole supply chain. This enables firms to use their limited resources more effectively and
improve their performance
2.5. Uncertainty
Uncertainty is the changes in environmental status and the inability to predict the effects of such
changes and their expected consequences on firms (Milliken, 1987). Flynn et al. (2016) classified
the uncertainty in supply chains into micro-, meso- and macro-levels. The micro-level
uncertainty occurs in processes repeating in firms and found in environments with lower
complexity (Flynn et al., 2016). Variability of material and information flows in value and time
results in uncertainty (Sivadasan et al., 2002).
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Micro-level uncertainty is concerned with data predicting through distribution, such as variability
of customer demand (Flynn et al., 2016). The meso-level of supply chain uncertainty refers to the
deviation between the information required by a supply chain member and the available
information (Galbraith, 1977). As the supply chain complexity increases, the need for
information increases (Leuschner et al., 2013).
The macro-level supply chain uncertainty is related with a complex and dynamic environment in
which there are ambiguous and unstructured circumstances (Flynn et al., 2016), such as facing
natural disasters or unexpected shifts in customer demand. Other examples of macro-level
uncertainty are accidents, wars and terrorist attacks (Kauppi, 2013). Changes in economic
conditions, market turmoil, competition intensity and turmoil in industry and technology are
major sources of uncertainty in macro-level (Germain et al., 2008).
Boonyathan and Power (2007) argue that it is possible to mitigate uncertainty by close
coordination with both suppliers and customers. On the customer side, firm customers such as
wholesalers and retailers are closer to the end customers in the supply chain. Integration with
them leads to better demand forecasting through receiving more accurate information regarding
the demand of end customers. In the face of demand uncertainty, access to a more accurate
information on demand fluctuations becomes even more critical and helps in mitigating bullwhip
effect and its harmful consequences on firm performance. On the supply side, the early
involvement of suppliers in the production of new products is highly critical and can reduce costs
associated with uncertainties in new product development, resulting in positive impact on
operational and financial performance. While the effect of environmental uncertainty on firm
performance appears to be negative, it can have positive effects in practice. According to
previous studies, environmental uncertainty can result in higher levels of manufacturing
flexibility (Patel et al., 2012), which, in turn, improves firm performance (Ebrahimpour Azbari et
al., 2018). Uncertainties in demand and technology dimensions reinforce the positive relationship
between customer participation and process flexibility (Feng et al., 2010).
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2.6. Demand uncertainty
Demand uncertainty (DU) is one type of micro-level uncertainty which can have a significant
impact on firm performance (Flynn et al., 2016). It refers to the extent to which the needs of
customers change over time (Chang et al., 2002). DU is one of the external factors that firms face
in the supply chain (O’Leary-Kelly & Flores, 2002). Geary et al. (2002) argue that demand
uncertainty can be seen as the difference between actual market demand and projected
customerorders in an organization. In fact, DU refers to the difficulty level in predicting future
demand characteristics of the firm’s customers (Bernstein & Federgruen, 2005).
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2.8.1. Relationship between SCI and organizational performance
SCI can have a positive effect on firm performance (Li, 2015; Tarifa-Fernandez & De
BurgosJiménez, 2017). According to information processing theory, SCI can improve
communication between the firm’s employees and external partners, resulting in higher quality
and more informed decision making. In addition, SCI allows firms to attain required information
related to demand, technology, and strategy in a timely manner. This can help in better aligning
and coordinating activities among supply chain partners, decreasing waste, and providing
products at a higher speed and lower cost to customers (Li, 2015). Internal integration can
improve internal processes and prevent the occurrence of non-value added and duplicated
activities within the firm. This results in the production of higher quality products at lower costs
(Flynn et al., 2010). External integration can help in acquiring information regarding supply
chain including information about suppliers’ activities and customer demand in a timely manner,
which helps in higher coordination and collaboration among supply chain members, and
avoiding inefficiencies across the whole supply chain (Swink et al., 2007).
Previous empirical studies have supported the positive effect of SCI in the form of internal
and external integration on firm’s operational and financial performance (Flynn et al., 2016;
Kumar et al., 2017; Rosenzweig et al., 2003; Vickery et al., 2003). In one study, Kumar et al.
(2017) found that SCI had a positive effect on supply chain performance, including operational
performance, production flexibility, inventory turnover, order fulfillment rate, and total logistics
costs. In another study, Othman et al. (2016) found that SCI had a positive effect on the logistics
performance. Li (2015) found that internal and product integration had a positive effect on
operational performance among organization or companies.
In another study, researchers found that SCI, including internal integration and external
integration with suppliers and customers had positive effects on financial performance. In
addition, internal integration had a positive effect on operational performance (Zailani &
Rajagopal, 2005). Beheshti et al.’s (2014) study on manufacturing companies showed that all
SCI dimensions, including internal integration and external integration with suppliers and
customers were beneficial to organizations’ financial performance. In other words, firms with
higher levels of SCI had higher levels of financial performance. Flynn et al. (2010) found a
positive relationship between external integration with customers and suppliers and operational
performance. Fazli and Amin Afshar (2016) found that SCI had a positive effect on operational
and financial performance of the organizations. Other research has shown that internal
integration improves external integration and that internal and external integration both directly
and indirectly improves firm performance (Huo & Zhao, 2012; Nazemi & Kharidar, 2012).
15
2.9. Empirical Reviews
Otchere, Annan, & Anin, (2013) concluded in their studies that supply chain integration
directly relates with business performance. Internal collaboration directly affects firm
performance. Higher levels of integration generally lead to better performance.
Kim, (2006) found that in small firms, efficient SC integration may play a more critical role
for sustainable performance improvement, while, in large firms, the close interrelationship
between the level of SCM practices and competition capability may have more significant effect
on performance improvement.
Flynn, Huo, & Zhao (2010) assessed the impact of three dimensions of supply chain
integration (supplier integration, customer integration, and internal integration) on operational
and business performance and stated that internal integration directly relates to both business and
operational performance and that customer integration directly relate to operational performance.
Although supplier integration is not relate directly to either type of performance, the integration
of supplier and customer were related to operational performance. Internal and external
integration influence each other along with performance. The effect of integration between
corporate competitive capability and SC operational capability on performance improvement
becomes insignificant as the developmental stage of SC integration increases (Otchere, Annan, &
Anin, 2013).
Alireza et al. (2011) conducted study on Malaysia Electronic Industry to present a mode for
supply chain performance by employing supply chain design, supply chain information sharing,
and flexibility and delivery components as independent variables influencing supply chain
performance. The results from this study depicted that supply chain design influences supply
chain performance through delivery and information sharing. Furthermore, information sharing
and delivery have a direct influence on supply chain performance. The findings also showed that
flexibility influences supply chain performance through delivery. Information sharing affects
supply chain performance directly and has also an indirect impact on supply chain performance
through flexibility. This study elaborates the significant effect of the design of the supply chain
on its performance while considering the impact of information sharing.
16
advantage. The result from this study was indicates as there is relationships between SCM
practices and competitive advantage.
Lenny et al. (2007) conducted study on the impact of supply chain management practices on
performance of SMEs in Turkey. Based on exploratory factor analysis (EFA), researchers were
grouped SCM practices in two factors: outsourcing and multi-suppliers (OMS), and strategic
collaboration and lean practices (SCLP). The results indicate that both factors of SCLP and OMS
have direct positive and significant impact on operational performance. In contrast, both SCLP
and OMS do not have a significant and direct impact on SCM-related organizational
performance. Also, as the direct relationship between the two performance-constructs was found
significant, both factors of SCM practices have an indirect and significant positive effect on
organizational performance through operational.
On the research topic Supply Chain Management measurement and its influence on
Operational Performance conducted by Priscila and Luiz (2011), SCM measurements were
considered as consists of information sharing, long term relations, cooperation and process
integration as independent variables influences operational performance in case of Brazilian
companies. The empirical results of this study provided evidence of a positive impact of SCM
measurements on operational performance.
Supply Chain Management, Product Quality and Business Performance in case of Malaysian
manufacturing companies conducted by Arawati (2011) and the study specifically investigates
relationships between SCM, product quality and business performance and these associations are
analyzed and the result demonstrates that SCM dimensions namely ‘lean production’, ‘new-
technology and innovation’, ‘strategic supplier partnership’ and ‘postponement concept’ appear
to be of primary importance and exhibit significant effects on product quality and business
performance.
Adebayo (2012) conducted study on SCM Practices in Nigeria Today: Impact on SCM
Performance. The SCM practices considered in this paper were namely strategic supplier
partnership, customer relations practices, information sharing, information quality and
postponement. This paper provides empirical justification for five key dimensions of SCM
practices identified and describes the relationship among SCM practices and SCM performance
as well as the impact of these practices on SCM performance. The study thus showed that SCM
practices definitely impacts SCM performance. Mahbubul (2013) conducted research on Effects
of Supply Chain Management Practices on Customer Satisfaction in the pharmaceutical industry
of Bangladesh: Evidence from Pharmaceutical Industry of Bangladesh. The results of the study
indicate that SCM practices as observed in the industry comprise three dimensions, namely,
collaboration and information sharing, logistics design and IT infrastructure, and organizational
17
culture (OC). However, while the first two exert their impact on customer satisfaction, OC does
not have any influence on it.
Generally, from above literature reviews it can be easily understandable that the work on
supply chain management measurements/ practices and its influences on different perspectives of
the organization and overall supply chain partners increasing and yields good backgrounds.
However, the relationship of SCM with performance cannot be regarded as conclusive (Cousins,
et al., 2006). Despite the increase of empirical research in the last few years, important
differences in research design undermine comparability: lack of consensus about the definition
and dimensionality of the SCM construct, use of different units of analysis, and different
approaches to performance measurement.
The figure determines a brief introduction of the variables of the present study. Independent
variable consists of Supply Chain Integration, which cover integration with customer, integration
with supplier, with information integration and internal and external integration with in
organization. Dependent variable is Non financial organizational Performance which includes
responsibility, reliability, flexibility, quality and delivery. Furthermore, the model states that
18
there is a positive relationship between supply chain integration and organizational performance
of a firm. The model depicts the direct role of supply chain integration on organizational
performance as well as indirect effect of supply chain management on organizational
performance.
CHAPTER THREE
Research Methodology
This research is an explanatory study with survey based which focuses on expanding
knowledge on current issue through data collection and it describes the behavior of sample
population. The study has one independent variable which focuses on supply chain integration.
Data will be collected from the managers and experts of the Oil seed organizations with related
task functions. The main objective of this study is to examine the roles of supply chain integration on
organizational performance in amhara region food oil organizations . To achieve this objective
descriptive type of research design with a quantitative and qualitative approach will be used.
Flynn et al.’s (2016) questionnaire has been used in many studies, which demonstrates its
high reliability and validity (Ding et al., 2017. SCI and firm performance constructs will be
19
measured using questions. Considering the extensive literature search and use of face-to face
interviews in the development of Huo et al.’s questionnaire, it is among the high-quality
questionnaires will be used in the study (Huo et al., 2014). Product integrity questions dealt with
the collaboration with both suppliers and customers when designing and manufacturing new
products (Huo et al., 2014). Demand uncertainty was measured by factors such as demand for
products, orders received to generate demand, and demand forecasting (Flynn et al., 2016).
Operational performance will be measured by factors such as flexibility in product
diversification, delivery speed, production capacity change and support services are compared to
the main competitor.
The researcher will not study all employees of the Food Oil Companies due to the population
are large and lack of availability and willingness of all employees and economically
unaffordable. Therefore, for these reasons to undertake the study the researcher will take
permanently hired clerical employees of the Companies which is management and experts staffs
from selected Food Oil Factories in Amhara Region.
Name of the Place of the Numbers of Sample No Invested capital Refining Land
organization factory Employee of Employee production coverage
capacity
Tsehay Union Oil Gondar 100 40 70 Millioin 10,000 Ltr Oil per 8734 SqM
Factory day
PhiBela Business Burie 300 60 4.5 Billion 1.5 million Ltr Oil 300,000
Group per day SqM
WA Oil Factory Debre 100 40 5 billion 1.3 million Ltr Oil 101,103
Markos per day SqM
Total 500 140
Note: The study will use Yemane Toro’s population analysis method because the data which the
paper needs to collect are from the population to be interviewed but on the analysis of the
information using SPSS I will use every analysis methods which are important for the result.
N 140
n=
1+ N ¿ ¿
= n=
¿¿
= 103
21
3.7. Data Collection Method & Procedure
According to, Cohen (2011) questionnaire is a set of questions designed to produce
information from the respondents in order to accomplish research objectives and also it allows
the researcher to collect the relevant information necessary to address research question.
The data will be collected using questionnaires and interviewing managers and selected staff
members. The questionnaires will be prepared in open ended and close ended questions. And the
observation will use structured and unstructured observation methods.
The data procedure will be taken by requesting permission from all the Food Oil Company
Managers and each respondent to the study to be request to fill a questionnaire after a brief
introduction and objective of the study explained. And after that the research questionnaires will
be distribute in the Companies during working hours while employees are in their work place.
Then the questionnaires will be returned after they finished their choice of their answers. The
questionnaire will be prepared in Amharic & English languages.
3.9. Reliability
Reliability is concerned with the internal consistency of the items. Hair et al (2007) defined
reliability as the extents to which a variable or a set of variable is consistent in what it is
extended to measure. Therefore study uses multiple items in all variables and internal
consistency analysis will be carried out through Cornbrash alpha reliability tests. Duffy et al
(2001) stated that, a high α (greater than .60) indicates that the items within a scale are measuring
the same construct.
3.10. Validity
Validity is the degree to which a measure accurately represents what it is supposed to .It is concerned
with how well the concept is defined by the measure(s). Therefore the study will try to addresses validity
through the review of literature and adapting instruments used in previous research.
22
4. Work Plan and Budget
5 Data
collection x x
6 Data analysis
and writing
final research x x
7 Submission of
research
8 Presentation
of final
research
4.2. Budget
Pens 20 15 300
Pencil 10 10 100
ry
Binder 3 70 210
Total cost 2410
Transportation 10trips 200 2000
Perso
23
Total cost 5300
Contingency 35% 2000
Overall total 9710
cost
Conclusion
There are two perspectives on the relationship between SCI and organization
performance (Huo et al., 2014). The first perspective, referred to as universal perspective,
focuses on SCI dimensions and asserts that certain types of SCI can have positive effects on firm
performance (Flynn et al., 2010; Huo & Zhao, 2012). The second perspective, referred to as
contingency perspective, emphasizes the role of moderating variables such as environmental
factors on the relationship between SCI and firm performance (Wong et al., 2011a). This study
will attempt to empirically examine the predictions of these two perspectives by testing the role
of SCI dimensions on organizational performance both directly and in interaction with demand
uncertainty (Iyer et al., 2009). The resultwill suggest that internal and process dimensions of SCI
have positive effects on operational performance. In addition, internal, product, and also process
dimensions effects on financial performance. Furthermore, demand uncertainty relationship.
Therefore, firms will be advised the positive results of the study. An important contribution of
this study stems from its emphasis on studying detailed dimensions of internal and external
integration. This paper, will synthesized the large and fragmented body of knowledge into three
stream of approach including (1) Company’s integration with suppliers (2) Cross functional
integration within a company (3) Company’s integration with customer. To bring about
improved performance in a supply chain all participants in the supply chain should be committed
to common goal, such as for enhancing customer satisfaction, market performance and financial
performance.
24
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APPENDIX
APPENDIX I: QUESTIONNAIRE
DEPARTMENT OF MANAGEMENT
My Name is Melat Habtemariam Abate, This questionnaire is developed for an academic effort
planned for the collection of data to conduct a thesis paper on the title “The Role of Supply chain
Integration on organizational performance on selected Food oil factories in Amhra region” in
order to fulfill the University’s requirement set for awarding of a Master of Business
Administration. The information obtained from this questionnaire will be kept confidential and
will not be used for any other purposes. Hence, I am kindly asking respondents to give your
candid information.
NB:
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Instruction: Please Mark X where necessary.
Statement 1 2 3 4 5
Extent of Supply chain integration
External integration
Sourcing and tendering decisions are easily made due to SC Integration
and information sharing
There are external SC integration that fastens flows such as, physical
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and funds
Distribution and delivery is made at the right time and place due to SC
integration, information sharing and coordination.
There are integration of objectives, planning, and resources with
external organizations.
Internal integration
Monitoring stock movement has been made easier as a result of the
collaboration between procurement, logistics and warehouse/ inventory
management
There are internal integration of functions and activities
With an integrated SC technologies and systems established, inter and
intra organizations’ communications are optimized.
Due to information and technology integration, there are accesses of
tracking performances of SC partners.
Supplier Integration
A database of suppliers is easily maintained as a result of SC
Integration.
With an integrated suppliers supply chain, logistics services are
improved
SC Integration has provided the organization the ability to quickly and
easily relate with suppliers.
Supply chain integration is led to a better supplier relationship
management.
Orders are easily processed as a result of supplier integration.
Customer Integration
SC Integration has assisted in improving the quality of goods, works
and services offered to the beneficiary
The speed of service delivery has been enhanced due to the supply
chain integration process
Customer integration has enabled to deliver services easily and quickly.
The speedy customer collaboration has been maintained as a result of
SCI.
Information Integration
Due to information and technology integration, there are accesses of
tracking performances of SC partners.
With an integrated information and measurement SC, supply chain
analysis has been done.
With an integrated suppliers supply chain, logistics services are
improved.
There are external SC integration that fastens flows such as, physical
and funds.
Measurement Integration
With an integrated SC technologies and systems established, inter and
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intra organizations’ communications are optimized.
Distribution and delivery is made at the right time and place due to SC
integration, information sharing and coordination.
With an integrated SC technologies and systems established, inter and
intra organizations’ communications are optimized.
Please indicate the extent to which the following statement concerning the relationship that
exists between your SCI and the performance of your organization occurs.
Statement 1 2 3 4 5
Organizational performance
The firm has maintained Responsiveness and Flexibility of deliveries.
Uncertainty has been minimized in the receiving of products and
services
Cycle time reduced for some goods like that of assembled.
Reduced Inventory level in the organization
Shorter lead times needed for delivery of orders
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