THE EFFECT OF SUPPLY CHAIN INTEGRATION ON ORGANIZATION PERFORMANCE: IN CASE OF DEBRE BIRHAN INDUSTRIAL PARK

Abstract

The main objective of this study was to examine the effect of Supply chain integration on organization performance, in case of Debre Berehan industrial park. To achieve the aim of this study, explanatory research design and quantitative research approach employed. The populations of the study were employees of EK Ethiopia Knitted Manufacturing Plc. and Shangeheng Wearing Apparel Manufacturing Plc., and those employees grouped in six departments via stratified random sample. Subsequently, the sample size from each department determined through stratified proportional sampling, and sample units from each department have been selected randomly. A total of 218 sample units were selected and questionnaires have distributed. Accordingly, 201 (92.2 %.) of questionnaires were correctly filled, returned and applied for analysis. Besides, SPSS version 23 was used for analyze, interpret and present the data captured via questionnaire through descriptive and inferential analysis method: means, standard deviation, correlation and regression analysis were used. Hence, the descriptive analysis result had shown, all predictor variables: internal integration, supplier integration and customer integration practiced occasionally. Furthermore, Pearson correlation result confirmed existence of statistically significant positive association between the set Supply chain integration and Debre Berehan industrial park. Lastly, the regression result suggested that dimension of Supply chain integration have statistically significant predicting power on performance of Debre Berehan industrial park, except supplier integration on customer satisfaction. Therefore, this study recommended, improving intra-organizational and inter-organizational relationship to ensure global competitiveness.