The impact of supply chain management practices on the organizational performance of basic metal and engineering industries in Ethiopia

Abstract

Today organizations are facing different kinds of challenges as they are operating in a dynamic global market. Due to the lack of proper knowledge and skill in management, shortage of capital, weak infrastructure etc. the challenge is more intensive for organizations situated in developing countries like Ethiopia. Therefore, such organizations have to seek for alternative ways to improve their business activities in order to compete in the global market. Supply Chain Management (SCM) is one of the most effective ways that many organizations like Wall-Mart have managed to achieve best organizational performance. In the Ethiopian business context, especially in Basic Metal and Engineering Industries (BMEIs), the concept of SCM should be well understood and practiced because these industries are the backbone of other growing industries in the country. The basic objectives of this research are (1) to assess the level of implementation of SCM practices in Ethiopian BMEIs, and (2) to analyze the relationship between SCM practices and organizational performance in the same industries.