Skip to main content
SpringerLink
Log in

Characteristics of Supply Chain Integration of Manufacturing Firms in Ethiopia

  • Chapter
  • First Online:
Advancement of Science and Technology in Sustainable Manufacturing and Process Engineering

Part of the book series: Green Energy and Technology ((GREEN))

  • 71 Accesses

Abstract

Recent studies reveal that supply chain integration (SCI) has a fully mediating role between supply chain management practices (SCMPs) and supply chain performance (SCP). It enhances SCP and facilitates other elements of SCMPs, although it is a great challenge for many manufacturing firms to achieve a higher level of integration. The severity of the challenges varies based on: product characteristics, industry characteristics, location of suppliers, and the role of firms in the global supply chain (GSC). However, there is a lack of study on the characteristics and challenges of SCI while firms make a shift of role in the GSC. The aim of this study is to assess the characteristics of SCI taking the leather and leather products manufacturing industry in Ethiopia as empirical evidence, wherein a dynamic shift has occurred from the state of raw material supplier to supplier of value-added products to the GSC. Survey, observation, and questionnaire were applied to collect data. The data were analyzed with the framework of Supply Chain Operations Reference (SCOR) Model and compared against the McLaren’s five levels of SCI characteristics. The study has identified six typologies of supply chains, which are practiced by large and medium-scale firms. Out of the six typologies, supply chain-5, formed by vertical expansion of firms, is dominantly practiced by many of the firms. This supply chain doesn’t satisfy any of the higher levels of McLaren’s SCI characteristics (Level-III, Level-IV, and Level-V) since there is a lack of horizontal integration among firms by outsourcing non-core activities. The output of this study can help to shed light on the nature of supply chains in developing countries while moving from raw material supplier to producer of value-added products. In the end, further study is needed to study the complete supply chain including raw material and input suppliers in order to understand its effect on firm’s overall performance.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Lenny Koh, S.C., Demirbag, M., Bayraktar, E., Tatoglu, E., Zaim, S.: The impact of supply chain management practices on performance of SMEs. Ind. Manag. Data Syst. 107(1), 103–124 (2007)

    Article  Google Scholar 

  2. Koh, S.C.L., Saad, S.M., Arunachalam, S.: Competing in the 21st century supply chain through supply chain management and enterprise resource planning integration. Int. J. Phys. Distrib. Logist. Manag. 36(6), 455–465 (2006)

    Article  Google Scholar 

  3. Abdi, M.R., Al-Shboul, M.A.R., Barber, K.D., Garza-Reyes, J.A., Kumar, V.: The effect of supply chain management practices on supply chain and manufacturing firms’ performance. J. Manuf. Technol. Manag. 28(5), 577–609 (2017)

    Article  Google Scholar 

  4. Gandhi, A.V., Ateeque, S., Sheorey, P.A.: Impact of supply chain management practices on firm performance. Int. J. Retail Distrib. Manag. 45(4), 366–384 (2017)

    Article  Google Scholar 

  5. Sundram, V.P.K., Chandran, V.G.R., Bhatti, M.A.: Supply chain practices and performance: the indirect effects of supply chain integration. Benchmarking Int. J. 23(6), 1445–1471 (2016)

    Article  Google Scholar 

  6. Brulhart, F., Okongwu, U., Moncef, B.: Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective. J. Manuf. Technol. Manag. 26(5), 678–702 (2015)

    Article  Google Scholar 

  7. Ganesh Kumar, C., Nambirajan, T.: Supply chain management components, competitiveness and organizational performance: causal study of manufacturing firms. Asia Pac. J. Manag. Res. Innov. 9(4), 399–412 (2013)

    Article  Google Scholar 

  8. Sandhu, M.A., Helo, P., Kristianto, Y.: Steel supply chain management by simulation modeling. BIJ. 20(1), 45–61 (2013)

    Article  Google Scholar 

  9. Sundram, V.P.K., Ibrahim, A.R., Govindaraju, V.G.R.C.: Supply chain management practices in the electronics industry in Malaysia: consequences for supply chain performance. BIJ. 18(6), 834–855 (2011)

    Article  Google Scholar 

  10. Donlon, J.P.: Maximizing value in the supply chain. Chief Exec. 117(1), 54–63 (1996)

    Google Scholar 

  11. Tan, K.C., Lyman, S.B., Wisner, J.D.: Supply chain management: a strategic perspective. Int. J. Oper. Prod. Manag. 22(6), 614–631 (2002)

    Article  Google Scholar 

  12. Chen, I.J., Paulraj, A.: Towards a theory of supply chain management: the constructs and measurements. J. Oper. Manag. 22(2), 119–150 (2004)

    Article  Google Scholar 

  13. Min, S., Mentzer, J.T.: Developing and measuring supply chain management concepts. J. Bus. Logist. 25(1), 63–99 (2004)

    Article  Google Scholar 

  14. Al-Shboul, M.A.R., Barber, K.D., Garza-Reyes, J.A., Kumar, V., Abdi, M.R.: The effect of supply chain management practices on supply chain and manufacturing firms’ performance. J. Manuf. Technol. Manag. 28(5), 577–609 (2017)

    Article  Google Scholar 

  15. Phan, T., Doan, X., Nguyen, T.: The impact of supply chain practices on performance through supply chain integration in textile and garment industry of Vietnam. Uncertain Supply Chain Manag. 8(1), 175–186 (2020)

    Article  Google Scholar 

  16. McLaren, T.: A measurement model for web-enabled supply chain integration. In:19th Bled eConference eValues, Bled, Slovania (2006)

    Google Scholar 

  17. Khanuja, A., Jain, R.K.: Supply chain integration: a review of enablers, dimensions and performance. BIJ. 27(1), 264–301 (2020)

    Article  Google Scholar 

  18. Braunscheidel, M.J., Suresh, N.C.: The organizational antecedents of a firm’s supply chain agility for risk mitigation and response. J. Oper. Manag. 27(2), 119–140 (2009)

    Article  Google Scholar 

  19. Flynn, B.B., Huo, B., Zhao, X.: The impact of supply chain integration on performance: a contingency and configuration approach. J. Oper. Manag. 28(1), 58–71 (2010)

    Article  Google Scholar 

  20. Zhao, X., Huo, B., Selen, W., Yeung, J.: The impact of relationship commitment and internal integration on external integration. J. Oper. Manag. 29(1/2), 17–32 (2011)

    Article  Google Scholar 

  21. Fasika, B., Thoben, K., Marcus, S.: Integrating developing country manufacturing industries into global supply chain. J. Ind. Eng. Manag. 7(1), 174–193 (2014)

    Google Scholar 

  22. Awad, H.A., Nassar, M.O.: A broader view of the supply chain integration. Challenges. Int. J. Innov. Manag. Technol. 1(1), 51–56 (2010)

    Google Scholar 

  23. Nicita, A., Ognivtsev, V., Shirotori, M.: Global Supply Chains: Trade and Economic Policies for Developing Countries Study Series No. 55. UNCTAD, Geneva (2013)

    Google Scholar 

  24. Beroe: https://www.beroeinc.com. Last accessed 23 Apr 2022

  25. OCED: Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies (2015)

    Google Scholar 

  26. Koleros, A., Attfiled, W.: Independent Evaluation of the Private Enterprise Program Ethiopia (PEPE). Ministry of Industry of Ethiopia, Evaluation Design and Baseline Survey Findings Report (2017)

    Google Scholar 

  27. Zakaria, C., Claire, C.C., Anas, I., Roxane, L., Narcis, S., Matthieu, S.: Does Ethiopia Have A Comparative Advantage in the Leather Industry? (2016)

    Google Scholar 

  28. Grumiller, J., Raza, W.: The Ethiopian Leather and Leather Products Sector: An Assessment of Export Potentials to Europe and Austria, OFSE Research Report No.60. Vienna (2019)

    Google Scholar 

  29. Wegayehu, F., Kalaba, M.: The role of trade policy on Ethiopia’s leather industry: Effect of Export Tax on Competitiveness. Paper presented at the 5th international AAAE conference, transforming smallholder agriculture in Africa: the role of policy and governance, 23–26 Sept 2016, Addis Ababa (2016)

    Google Scholar 

  30. Sabir, R.I., Irfan, M.: Levels and barriers to supply chain integration: a conceptual model of supply chain performance. Int. J. Manag. Sci. Bus. Adm. 1(1), 52–59 (2014)

    Google Scholar 

  31. Tenaw, T., Thoben, K., Rao, D.K., Bereket, H.: Leather and textile industries-strategic sectors for Ethiopia to gain capability of manufacturing for global market competitiveness: a literature review. Ethiop. J. Sci. Technol. 15(1), 9–30 (2022)

    Google Scholar 

  32. Beamon, B.M.: Supply chain design and analysis: models and methods. Int. J. Prod. Econ. 55(3), 281–294 (1998)

    Article  Google Scholar 

  33. Chen, I.J., Paulraj, A.: Understanding supply chain management: critical research and a theoretical framework. Int. J. Prod. Res. 42(1), 131–163 (2004b)

    Article  MATH  Google Scholar 

  34. CIF: https://corporatefinanceinstitute.com. Last accessed 23 Feb 2022

  35. Frohlich, M., Westbrook, R.: Arcs of integration: an international study of supply chain strategies. J. Oper. Manag. 19, 185–200 (2001)

    Article  Google Scholar 

  36. Bowersox, D., Closs, D., Cooper, B.: Supply Chain Logistics Management. McGraw-Hill/Irwin, New York (2002)

    Google Scholar 

  37. Stevens, G.C., Johnson, M.: Integrating the supply chain … 25 years on. Int. J. Phys. Distrib. Logist. Manag. 46(1), 19–42 (2016)

    Article  Google Scholar 

  38. Ralston, P.M., Blackhurst, J., Cantor, D.E., Crum, M.R.: A structure–conduct–performance perspective of how strategic supply chain integration affects firm performance. J. Supply Chain Manag. 51(2), 47–64 (2015)

    Article  Google Scholar 

  39. Golgeci, I., Gligor, D.M.: The interplay between key marketing and supply chain management capabilities: the role of integrative mechanisms. J. Bus. Ind. Mark. 32(3), 472–483 (2017)

    Article  Google Scholar 

  40. Kim, S.W.: Effects of supply chain management practices, integration and competition capability on performance. Supply Chain Manag. Int. J. 11(3), 241–248 (2006)

    Article  Google Scholar 

  41. David, R., Joseph, J.: Study on performance measurement systems – measures and metrics. Int. J. Sci. Res. Publ. 4(9), 1–10 (2014)

    Google Scholar 

  42. Taticchi, P., Tonelli, F., Cagnazzo, L.: Performance measurement and management: a literature review and a research agenda. Meas. Bus. Excell. 14(1), 4–18 (2010)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia

    Tenaw Tegbar, D. K. Nageswara Rao & Bereket Haile

  2. Department of Production and Logistic, Bremen University, Bremen, Germany

    Thoben Klaus

Authors
  1. Tenaw Tegbar
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Thoben Klaus
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. D. K. Nageswara Rao
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Bereket Haile
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Chemical and Biochemical Engineering, Western University, London, ON, Canada

    Kibret Mequanint

  2. Mechanical Engineering, Bahir Dar University, Bahir Dar, Ethiopia

    Assefa Asmare Tsegaw

  3. Chemical Engineering, Bahir Dar University, Bahir Dar, Ethiopia

    Zenamarkos Bantie Sendekie

  4. Civil and Water Resources Engineering, Bahir Dar University, Bahir Dar, Ethiopia

    Birhanu Kebede

  5. Civil and Water Resources Engineering, Bahir Dar University, Bahir Dar, Ethiopia

    Ephrem Yetbarek Gedilu

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Tegbar, T., Klaus, T., Nageswara Rao, D.K., Haile, B. (2024). Characteristics of Supply Chain Integration of Manufacturing Firms in Ethiopia. In: Mequanint, K., Tsegaw, A.A., Sendekie, Z.B., Kebede, B., Yetbarek Gedilu, E. (eds) Advancement of Science and Technology in Sustainable Manufacturing and Process Engineering. Green Energy and Technology. Springer, Cham. https://doi.org/10.1007/978-3-031-41173-1_15

Download citation

  • DOI: https://doi.org/10.1007/978-3-031-41173-1_15

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-41172-4

  • Online ISBN: 978-3-031-41173-1

  • eBook Packages: EnergyEnergy (R0)

Publish with us

Policies and ethics

Search

Navigation