Effects of Supply Chain Integration on Competitive Advantage and Organizational Performance: A Case of Food Complex Industries in Asella town

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