The Effect of Supply Chain Integration on Operational Performance: The Case of Chemical Industry in Ethiopia

Abstract

The aim of this research is to empirically examine the effect of supply chain integration on operational performance. In order to address the research objective, a quantitative survey approach is used to collect the relevant data from the target population of the study which includes Chemical and Chemical product manufacturing firms in Ethiopia. A questionnaire was administered to target respondents to collect a primary data for the study.  To analyze  the  data this study applied a descriptive  and  non  parametric  statistics including Kendall’s  correlation and Kruskal Wallis  test  to  see  the  significant  relationship between hypothesized variables as well as  to  measure the direction and strength of the relationship. The result from study shows a significant positive effect of supply chain integration construct on the operational performance of firms. However, this research investigation did not found statistically significant evidence on the effect of internal integration on external integrations.

Keywords: Supply Chain, Integration, Manufacturing, chemical product, Ethiopia