FURRA COLLEGE YIRGALEM CAMPUS

FACULTY OF BUSINESS AND ECONOMICS B.A DEGREE OF BUSINESS

MANAGEMENT
The Impact of Supply Chain Management Strategy practices on the Performance of Business
Organization (Case study on Ambasel Trading House P.L .C)
By: Habtamo Fetasha

ID: 250/2014

Advisor:

Thesis submitted to College of Business and Economics of furra College Yirgalem campass in partial
fulfillment of the requirements for B.A Degree in Business Management

Feburary , 22,2025

Sidama , Ethiopia

DECLARATION
I, Habtamu fetesha fenjaja registration number/I.D. Number 250/2014 here by declare that this proposal
thesis is a result of my independent research work on the topic entitled by “The Impact of Supply Chain
Management Strategy practices on the Performance of Business Organization, the case of Ambasel
Trading House plc” in partial fillfulment of B.A Degree in Business management at furra College Yirgalem
campus Business and Economics. This work is original in nature that it has not been presented by any
other person for an award of B.A Degree in any other College /Institution and all references are duly
acknowledged.
Conformation
The undersigned certifies that they have read and hereby recommend to furra college of Business and
Economics to accept the Thesis submitted by Habtamu fetesha fenjeja
entitled “The impact of Supply Chain Management strategy practices on the performance of Business
organization, “in partial fulfilment of the requirements for the award of a B.A Degree in Business
Management .
Submitted by:
Full Name--Habtamu fetesha fenjaja.------------------------------Signature-----------------------------
Date-----------------------

proved by:
Name of Advisor--------------------------------Signature-----------------------Date-----------------
Name of Internal Examiner--------------------------Signature------------------------ Date-------------
Name of Head of Department----------------------Signature------------------------Date--------------

CHAPTER ONE.......................................................................................................................
1. INTRODUCTION ................................................................................................................
1.2 Statement of the Problem .....................................................................................................
1.3.2 Specific Objectives..........................................................................................................
1.4 Research Questions..........................................................................................................
1.5.Hypotheses of the study......................................................................................................
1.6 Scope of the study...............................................................................................................
1.7 Significance of the study ....................................................................................................
1.8. Limitation of the Study.....................................................................................................
1.9 Organization of the study ...................................................................................................
1.10 Definition of terms............................................................................................................

CHAPTER TWO....................................................................................................................
LITERATURE REVIEW......................................................................................................
2. Introduction ........................................................................................................................
2.1. Theoretical review .............................................................................................................
2.1.1 The Concept of Strategy..................................................................................................
2.1.2 Supply Chain Concept.....................................................................................................
2.1.3 Supply Chain Environment .............................................................................................
2.1.4 History of Supply Chain Management Strategy..............................................................
2.2 Empirical Review ...............................................................................................................
2.3 Conceptual Framework.......................................................................................................

CHAPTER THREE................................................................................................................
3. RESEARCH METHODOLOG.........................................................................................
3.1 Introduction ........................................................................................................................
3.1.1 Research Approach..........................................................................................................
3.1.2 Research Design ..............................................................................................................
3.1.2 Target Population and Sample.........................................................................................
3.1.3. Data Collection Procedures ............................................................................................
3.1.4. Data Analysis and Presentation ......................................................................................
3.1.5 Validity and reliability.....................................................................................................
3.1.6 Ethical Consideration ..............................................................................................

The interest in the concept of supply chain management has steadily increased since the 1980s when
organizations saw the benefits of collaborative relationships within and beyond their organizations (J.M.
Mwilu, 2013) and Shereen N. (2021) had stated that one of the lessons from business experience that
has been communicated accurately by literature in the past decades is the fact that producers have to
align with suppliers, supplier‟s suppliers, customers and customer‟s customers to streamline
operations, thus, resulting into supply chains becoming the dominant vehicle for competition.
Today's management has highlighted customer satisfaction as a key factor in corporate success and has
stated that enhancing management relationships is critical to the company's success. The contemporary
business environment is very different from past ones, and competitiveness is extremely important
(Gilaninia et al., 2011) and New types of structural reforms, as well as competitive and exchange
processes, result in a communication paradigm for longterm buyer-supplier partnerships (Seyedi,
Moosavi, Heidari, 2009)”. According to Bogale (2015), supply chain expansion attempts to increase
profitability, customer response, and the ability to give value to customers, as well as improve
connectivity and dependency among enterprises.

Moreover, the market environment has become more dynamic and turbulent, companies need to adopt
new supply chain strategies for them to remain competitive because SCM strategy is now moving away
from traditional processes to agile capability of competitive bases of speed, flexibility, innovation,
quality, and profitability through the integration of reconfigurable resources and best practices in a
knowledge-rich environment to provide customer-driven products and services in a fast changing
market environment (Yusuf et al., 2004)

In the business environment creating better supplier partnership with both domestic and international
suppliers, properly handling customers (customer relationship management) anbeing informed in all
business matters and sharing of this information along with members are crucial for the improvement of
business performance. Moreover, maintaining the logistics system, the warehousing, the inbound and
outbound logistics and transportation are also very important for the flow of the business process along
Top Management Team (TMT)decision making capability and ability to avers risks whenever exist and
the ability to overcome challenges, the mind flexibility, creativity and entrepreneur ability to come up
with new business strategies are very important for the development and improvement of the business
performance

The company also played a major role in import and distribution of agro-chemicals and for

small holder farmers and mechanized agricultural sector and Supply of both imported and locally
produced materials and inputs to the agricultural, industrial, transport and trade sectors; and exports
(oil seeds, pulses, Arabica coffee, Meat, gum, agro-processed and sister companies‟ products in the
international market in countries like China, America, Europe, Asia,
Middle East, and Africa). The company‟s primary objective had been to create market opportunity to
the public, generating income for the government in the form of tax, support funds for socio- economic
development programs, provides foreign currency for the government, increases the productivity of the
farm land, transforms agricultural technology through the usage of modern agricultural machines and
inputs are some of the developmental activities that needs to be addressed by the company.
Therefore, since the case company has relationship with upper stream (suppliers) particularly for getting
imported items like: technological materials, such as irrigation machines, water pumps, hoses, walking
tractors, agricultural tools like sickles, machetes, fork and different machineries and agro-chemicals like
herbicides, pesticides, fungicides, and insecticides from international suppliers and cements, edible oils,
car tyres and reinforcement bars from domestic suppliers and supplies (exports) oil seeds, pulses,
Arabica coffee, Meat, gum, agroprocessed and sister companies‟ products in the international market
destiny. It also hasstrong relation with downstream (customer) or in the supply of products for local
organizations, distributors, wholesalers, retailers and end users. Supply chain management is therefore
involved a design of a seamless value adding processes across boundaries of an organization so that it
will be able to meet real need of the customer (Fawcett et al. 2007). Eventhough the design and
implementation impose a lot of complex problems and challenges in the process of execution of supply
chain management, the researcher was focused on the impacts of supplier partnership, customer
relationship management, information sharing, logistics system and TMT decision differently and
examine how these major independent variables affect the performance of the business organization
and will also be guided by research questions to measure and value the effect of these variables on the
performance of the business company.
The researcher in this study believed that this paper would contribute to the debate by examining the
the causal relationships between the Seven constructs (independent variables) in the supply chain
management practices and organizational performance and to indicates directions on how improvement
of performance on SCM practice brings forth an increment to its market share, ROI, sales revenue &
profitability or performance improvement as a whole.

1.2 Statement of the Problem

A business company‟s supply chain is an integral part of its approach to the market it serves and the
supplier-customer relationships, partnerships, information, market communication, technology
application, management decisions it serves for. According to Tan et al. (1998), nowadays the concept of
SCM has received increasing attention from parts of people like academicians, managers, consultants,
and business owners. Many organizations have begun to recognize that SCM is the key to building
sustainable competitive edge for their products and/or services in an increasingly crowded marketplace
and enhancing organizational and overall supply chain performance (Li et al., 2006). Therefore, the
supply chain needed to respond to market requirements and do so in a way that supports the
company‟s business strate.

The supply chain management in order to be aligned with the business strategy of the busin company, it
should understand the markets that the company served, it should able to define the strengths or core
competencies of the company in serving the market and it also should be able to develop the needed
supply chain capabilities to support the roles the company has chosen. However, most firms and public
sector organizations in Ethiopia had been organized functionally, they hadn‟t had integrated flow of
information and processes until recent yearsdue to lack of awareness and understanding to use
integrated system approach and even this time only few companies were applying fully integrated
system to evaluate their level of procurement, production, information sharing and flows, logistics,
market channels, market shares, market communications and distribution of orders. Moreover, the
customer relations, supplier partnerships, information sharings, ICT applications, operation of the
logistics system and TMT decision roles and other activies in the company have been managed in
traditional way, they are not based on knowledge, facts, evidences and other technoiques which help
the SCM strategy improve business performance.
The researcher, also observed that there were no much researches to assess the impact of SCM
practices in organizations which engage in import and export businesses, even the existing researches
related to the supply chain managements were carried out in developed countries which have different
economic, political, technology, social, legal and cultural status from Ethiopia. In Ethiopia the practice of
managing the SC from supplier to the customer is traditional i.e., not more than just buy–sale/
transactional relationship. As a result, it might be difficult to directly apply and generalize that the same
practices and collaboration as well as problems of SCM in Ethiopian context. Moreover, prior researches
that had been done to assess the impact of SCM practices on organizational performances focused on
manufacturing industries, pharmaceutical manufacturing and food and chemical processing‟s. For
instance (J. Sutdueana, W. Joemsittiprasert and K. Jermsittiparsert., 2019):- Supply Chain Management
and Organizational Performance:
The purpose of this study is therefore, to indicate ways to solve the above mentioned problems and to
find out the effect of the causal relationships of these variables on the supply chain management
practices in term of organizational success or performance. Moremore, it would help the researcher and
other researchers better understand the scope of activities related to supply chain management that
create what enhanced level of supply chain management practices in competitive business market place
would bring forth. Therefore, since the effort to achieve generalization of the causal relationship
between SCM practices and performance
calls for empirical confirmation in diverse environments in comparison with other similar business
organizations, hence the researcher in this study intends to test the frameworks, to assess the impacts
of SCM practices on organizational performance and contribute to the deThe purpose of this study is
therefore, to indicate ways to solve the above mentioned problems and to find out the effect of the
causal relationships of these variables on the supply chain management practices in term of
organizational success or performance. Moremore, it would help the researcher and other researchers
better understand the scope of activities related to supply chain management that create what
enhanced level of supply chain management practices in competitive business market place would bring
forth. Therefore, since the effort to achieve generalization of the causal relationship between SCM
practices and performance calls for empirical confirmation in diverse environments in comparison with
other similar business organizations, hence the researcher in this study intends to test the frameworks,
to assess the impacts of SCM practices on organizational performance and contribute to the debate.

1.3 Objective of the study

1.3.1 General Objective
The general objective of this study is to assess the role of supply chain management strategy practices
on improving the performance of business organizations and to present an appropriate
recommendations and implications on future studies for business organizations to improvetheir SCM
strategy.
1.3.2 Specific Objectives
 To show and describe how customer relationship management with in the supply chain is being
handld to help improve the success of business organization.
 To find out and describe how strategic supplier partnership with in the supply chain in the organization
is related with the performance of business organizations.
 To assess and explore how the level and quality of information sharing in the supply chain is used in
enhancing business success.
 To explore how the quality of information sharing in the supply chain had been utilized in enhancing
business performance in the organization.

1.4 Research Questions

Starting from the problem by focusing on the study objectives above, this research study will seek to
answer the following questions.
1. What relationship would exihabite between business performance and supply chain management
strategy in business organizations if the customer relationship management is changed?
2. How do strategic supplier partnerships related with the supply chain management and the
performance of business organizations?
3. What effect do quality of information sharing within the supply chain do have on the performance of
business organization?

4.What is the effect of the ultimate change of level of information sharing within the supply chain on the
performance of business organization?

1.5.Hypotheses of the study

Prior research studies indicated that the various components of SCM practices (such as Customer
relation management, supplier partnership management, quality and level of information sharing,
information-communication technology, logistics and top management team decisions) have an impact
on organizational performance. For example, the ability to build a close relationship with customers will
bring companies in to a long lasting competitive edge (Bowersox et. al, 1999). Strategic partnership
emphasizes direct relationship and long-term and encourages mutual planning and efforts to resolve
problems (Li et al.2006) Likewise ICT, LOG and TMT decisions have similar significant impacts on the
performance of a business organization.

1. Hypothesis H1: Adopting better quality customer relationship management in the supply chain is
positively related with the performance of business organization.
2. Hypothesis H2: Improving Strategic supplier partnerships in the supply chain is positively relatedwith
the performance of business organization.

3. Hypothesis H6: improving the logistics management system in the supply chain is positivelyrelated
with business performance in an organization.
4. Hypothesis H7: TMT decision on supply chain implementation is positively related with performance
improvement in business organizations.

1.6 Scope of the study

The study explained how the dependent variables: strategic supplier partnership, customer relationship
management, information sharing, logistics management system and TMT decision affects the
performance of an organization. The study was also focused and concentrated on business organizations
in relation to using SCM as a strategy which is located in Ethiopia, Addis Ababa. For this specific case
Ambasel Trading House plc was selected and the target
populations were all experts, team leaders, senior expert and middle level managers working

at ATH plc who have understandings and know the importance of supply chain management in
improving the success and performance of business organizations.
1.7 Significance of the study
Business Organizations can make differences if they implement effective supply chain management
strategies and have efficient leaders to effectively run the strategy. Hence, owners and leaders have to
be aware of that supply chain management strategy must be properly handle to bring the intended
purpose of their organization. Having the above in mind the stuy shall add valuable insights to the
existing practices and based on the research findings the companies will improve their existing business
performance and can able to continue in success. In addition, it is hoped that the study will provide
important information and serve as secondary data for further research on the topic. The research will
also be beneficial to know different types of business strategies and their impact on the performance of
their business.

1.8. Limitation of the Study

The study was limited to the case company only, however the findings where supply chain management
practices have big role to improve business performance might not be reliable or it might be hasty
generalization on the matter, therefore the study should be extended to many similar business
organizations to reach on more reliable findings(results). The model to measure the impact of SCM
practice on organizational performance was developed based on the data obtained on the response of
the respondents based on 5 point Likert scale, this results bias on the conclustion due respondent‟s
limitations of understanding and awareness on SCM concept. Since there are no much prior researches
assessing the impact of SCM practices on organizational performances in business companies, the
researcher encountered lack of sufficient and relevant literature on this topic, this might led stastically
insignificant findings.
1.9 Organization of the study
This research study will be organized in five chapters i.e. Chapter one will present the background of the
study, statement of the problem, research questions, objectives, significance, and scope of the study,
the hypothesis of the study and definition of terms. Chapter two presents the literature review related
to the topic under study. It further presents the theoretical concepts, empirical literature studies and
the conceptual framework. Chapter three deals with the research methodologies, which include
research approach, design, population, sample technique and sample size, data collection and
instrument, data analysis method and research variables in the study. Chapter four discusses the
empirical findings of the study that includes data presentation, analysis and interpretation. Based on the
findings of the study, the fifth chapter presents summary, conclusion and recommendation of the study.

1.10 Definition of terms

Supply chain:

is all inter-linked resources and activities needed to create and deliver products and services to
customers or a network of facilities and distribution options that performs the functions of procurement
of materials, transformation of these materials into intermediate and finished products, and the
distribution of these finished products to customers.Supply Chain Strategy: is a roadmap that helps
companies get their products to customers with as little friction as possible and ensures that every
phase of the supply chain is optimized, including the sourcing of materials, manufacturing, delivery, and
logistics.
Supply Chain Management (SCM):

is a network of relationships, with the goal to deliver superior value, i.e. the management of upstream
and downstream relationships with suppliers and customers to deliver superior customer value at less
cost to the supply chain as a whole ormanagement of upstream and downstream business relationships
together with suppliers and customers.
Supplier partnership SP:

The long-term relationship between the organization and its suppliers. It is designed to leverage the
strategic and operational capabilities of individual participat ing organizations to help them achieve
significant ongoing benefits.

Customer relationship Management CRM:

The entire array of practices that are employed for the purpose of managing customer complaints,
building long-term relationships with customers, and improving customer satisfaction.
Level of information sharing LIS:

The extent to which critical and proprietary information is communicated to one‟s supply chain
partner.Quality of information sharing QIS: Refers to the accuracy, timeliness, adequacy, and credibility
of information exchanged.
Logistics Management system (LMS):

Logistics LOG is the process of strategically managing the procurement, movement and storage of
materials, parts and finished inventory (and the related information flows) through the organization and
its marketing channels in such a way that current and future profitability are maximized through the
cost-effective fulfilment of orders or Logistics is essentially a planning orientation and framework that
seeks to create a single plan for the flow of products and information through a business.

Demurrage :-is a charge applied to containers that are left at the port or rail yard longer than their
allotted free time, or past the "Last Free Day”Detention is a fee payable by a shipper for holding on to a
container beyond the free allotted time after leaving the port/terminal to load or unload the container.
TMT: Top Management Team refers to the relatively small group of most influential executives at the
apex of an organization who acts as information processing centers of organizations, whose
characteristics, such as international experience and tenure, enable them to manage complexity and
ambiguity in the international business environment.
ICT: Information and Communications Technology (ICT) is technology that is used to handle
communications processes such as telecommunications, broadcast media, intelligent building
management systems, audiovisual processing and transmission systems, and network-based control and
monitoring functions.
 CHAPTER TWO

LITERATURE REVIEW

2. Introduction

This chapter discusses the impact of Supply Chain Management strategy in Organizations including the
business organization. It looks into the challenges, barriers and complexities in SCM implementation and
performance, and then provides a summary of reviews on studies by other scholars on subjects related
to Supply chain management strategies and come up with solutions for the problems. Research
overviews on supplier partnership, customer relationship management, information sharing, the
logistics system management, information communication technology and top management team
decision impacts and other related concepts will be covered and knowledge gaps will be identified. The
chapter also presents the Conceptual Framework that depicts the relationship between SCM strategy
practices and organizational performance.
2.1. Theoretical review
A theoretical framework/review comprises the theories expressed by experts in the field into which the
researcher plan to research, which the researcher draw upon to provide a theoretical coat hanger for
data analysis and interpretation of results or is a structure that summarizes concepts and theories,
which the researcher develop from previously tested and published knowledge which the researcher
synthesize to help the researcher have a theoretical background, or basis for data analysis and
interpretation of the meaning contained in the research data. Swanson (2013, p. 122) explicitly asserts,
“The theoretical framework is the structure that can hold or support a theory of a research study”. This
section provides the theoretical framework to describe the impacts of independent variables: supplier
partnerships, customer relations, information sharing, information communication, logistics system and
TMT decision in the supply chain management on the dependent variable, the performance of business
organizations.

2.1.1 The Concept of Strategy

Strategic Management basically seeks to answer the question: How and why do some firms outperform
others. Johnson and Scholes (Exploring Corporate Strategy) define strategy as: -"Strategy is the direction
and scope of an organization over the long-term: which achieves advantage for the organization through
its configuration of resources within a challenging environment, to meet the needs of markets and to
fulfill stakeholder expectations”. Nickols, 2011, defined the concept of Strategy as, the determination of
the long run goals and objectives of an enterprise, and the adoption of courses of action and the
allocation of resources necessary for carrying out these goals.
2.1.2 Supply Chain Concept
A major concept in supply chain literature is the alignment of supply chain initiatives with the overall
business strategy of a company. Porter (1996) differentiates between operational effectiveness and
strategy. Porter noted that recent business trends have focused on improving operational effectiveness,
which at a generic level involves performing the same activities better than competitors.

2.1.3 Supply Chain Environment

There are many strategic issues that confronts business today stemming from new rules of competition,
globalization, economic meltdown and customer taking control of his/her needs with full knowledge of
the market. As a result of these uncertainties, organizations today are faced with a number of challenges
in the supply chain which include among others the ability to meet up with changes in demand
variability, service improvements, lowering inbound costs, improving on time delivery, innovation and
speed deliveries.

2.1.4 History of Supply Chain Management Strategy

Before the term supply chain was coined, the term used for management and movement of Product and
services was logistics. The development of logistics was originally undertaken by the military in ancient
times (Britannica, 1994). Therefore, Supply Chain Management is derived from logistics concept. The
term supply chain management was coined in, 1982 by Keith Oliver, a management consultant at Booz
Allen Hamilton (Cortada, 2001). Oliver used the term to develop a vision for tearing down functional
silos that separated production, marketing, and distribution.

2.2 Empirical Review

Certain previous researchers have devoted deal of attention to the relationship of supply chain
management practices and certain aspects of organizational performance from different
perspective/dimensions of overall supply chain. Some of these research findings from different
researchers are discussed as follow.Yabibal Abate (2020) reviewed an article conducted to investigate
the “Effect of Supply Chain Management Practices on Organizational Performance with the Mediating
Role of Inventory Management: The Case of Ethiopian Pharmaceutical Supply Agency” at Debre Tabor
University, D/Tabor, Ethiopia. After intensive investigation of prior literature, they identified Strategic
Supplier Relationship, Customer Service Level, Quality of Information Sharing, Internal Lean Practice
and, Postponement Strategy as important practice of supply chain management. For the study data was
collected from a random sample of 201 out of 398 public health facilitators that are under Bahir Dar
branch. The findings of the study showed that among supply chain management practices identified,
Strategic Supplier Partnership, Customer Service Level, Quality of Information Sharing and
Postponement Strategy were found to be the most significant determinants of the performance of the
case organization and Inventory management practice was found to be a significant mediator of the
relationship between supply chain management practices and firm performance.

The research conceptualizes and develops five dimensions of SCM practice(strategic supplier
partnership, customer relationship, level of information sharing quality ,quality of information sharing
and internal lean practice) and it tests the relationship between SCM practices operational performance
and organizational performance and the research found out that there is strong relationship between
SCM practices operational performance and organizational performance and shows that SCM practice
have an influence both on operational performance and organizational performance and it finds out that
operational performance has also an influence on organizational performance. (Mwilu, 2013) also
conduct a study on supply chain management practices and performance among public research
institutions in Kenya. One of the objectives of this study was to determine the impactof SCM practice on
the performance of research institutions in Kenya and to evaluate the challenges faced by public
research institutions in Kenya. And to evaluate the challenges faced by public research institutions in
Kenya while adopting SCM. By developing seven dimensions of SCM practices from these the research
founds out that three variables namely logistics lean suppliers and information technology were found
to have strong statisticallysignificant relationships with performance.2.3

2.3 Conceptual Framework

The various elements discussed under this heading include supply chain management strategy practices
and their relationships with (Strategic supplier integration, Customer relationship management,
customer partnership management, Level and quality of information sharing, impacts of communication
and technology management, top management team decision and
Logistics management system) and organizational performance (financial and operational
performances): As the diagrammatical expression of the conceptual framework indicates commonly
known SCM practices namely: strategic supplier partnership, customer relationship, level and quality of
information sharing. In this research, the researcher includes the impact of logistics management system
and top management team decision on the performances of the business and will try to analyze what
impact SCM strategy practices will have on organizational performance. On the other extreme,
literatures indicate that SCM is not an easy going management system; it has many challenges especially
bullwhip effects and uncertainties associated with strategic planning and implementation as well as
achievements of goals and objectives have major impacts.
 CHAPTER THREE

Bb3. RESEARCH METHODOLOG

3.1 Introduction
This research was conducted to examine the impact of implementing supply chain management on
organizational performance in the case company and this is the part that describes the methodology
which was used in this study: the choice of particular research approach, the research design, the target
population and sample size determination, the data sources and types, the data collection procedures,
the ethical considerations, the data analysis and presentation techniques along with an appropriate
justification on the validity and reliability of the research.

3.1.1 Research Approach

For such researches which require much explanations, the researcher plans to use both quantitative and
qualitative (Mixed) approaches were preferable to provide an inclusive examination of the research
problems where one was not better than the other, all of thes approaches depend on how the
researcher want to do the research of study (Creswell, 2005). Creswell (2005) asserted that quantitative
research is a type of educational research in which the researcher decides what to study, asks specific,
narrow questions, and collects numeric (numbered) data from participants, analyzes these numberic
figures using statistics, and conducts the inquiry in an unbiased, objective manner.

3.1.2 Research Design

This study was conducted to investigate the impact of SCM strategy practices on organizational
performance based on fundamental theories, principles and management philosophies that were
supposed to be effective parameters just to evaluate the actual impact on the case

The researcher also used the survey design method to assess the relationship between SCM

strategy practices and organizational performance of the case company. In the survey, independent and
dependent variables were measured at the same point in time by using a single questionnaire. The
structured survey questionnaires were issued to 9 (Nine) different departments‟ the questions were
have been used to collect information from staff members‟ team leaders, senior experts and experts
working at head office and Addis Ababa branch office staffs of the case company.

3.1.2 Target Population and Sample

3.1.2.1 Data Sources and Types
Both primary and secondary data was used to perform the study. Primary data was collected from
respondents by distributing questionnaires to employees at head offices Addis Ababa, ATH plc) and from
branch offices of the case company through questionnaires. Secondary data were gathered from
documentation and records, annual reports, department data and appropriate website and other
documents.
3.1.2.2. Sampling Techniques
The population included internal auditors, internal audit team leaders, internal audit experts from the
head office finance department, team leaders, senior experts and experts (officers) from supply and
sales sector, export sector, logistics and development sector and electronics departments, human
resource and development department and the department managers and sector manager‟s
questionaires were distributed for each department while necessary. Census was used in this study and
employee‟s data were collected from human resource department

and number of employees included in the sample were determined by sample determination method.
The sampling method that was employed in this study was Purposive sampling because Purposive
sampling is a non-probability sampling approach that conforms to certain criteria

3.1.3. Data Collection Procedures

There were two sources of data namely, primary and secondary source. According to Biggam (2008),
primary data is the information that the researcher finds out by himself/herself regarding a specific
topic. In this research primary sources of data were used for entire analyses, and data were collected
through questionnaires from the selected sample of respondents/ employees of the company. A total of
80 questionnaires were distributed to respondents and responses were utilized in the data analyses and
also data was collected directly through questionnaires and managed to identify the impact of supply
chain management strategy practiceson organizational performance in case of ATH plc and then
measure the impacts and influence in dependent variable .

3.1.4. Data Analysis and Presentation

Both quantitative and qualitative data analyses methods were used. After data were collected, proper
tools and techniques had been used for analysis and interpretation of data. In order to reach
conclusions based on the findings and results of the study, descriptive analysis was used to summarize
the data. These methods used numerical and/or Graphical method of analyses

for recognizing patterns in the data, while the numerical methods of analysis was acknowledged for
giving precise measures. In the analysis of descriptive statistics, either correlation and linear regression
analyses or verbal explanations were performed. The reasons for using this procedure was to make it
easier for the reader to compare and understand the findings.
3.1.4.1 Data Analysis
The collected data was analyzed and interpreted by using both qualitative and quantitative
techniques. The data collected from responses of open ended questions was analyzed qualitatively using
either inductive or deductive approaches and data collected through responses of closed ended
questionnaires were analyzed quantitatively by using mean, frequency, Pearsoncorrelation and
regression analysis techniques to show the effect of independent variables on the dependent variable by
using SPSS (V23) tool. The questionnaires were administered, and the material the
3.1.4.2 Quantitative Data Analysis
Quantitative data refers to all such data and can be a product of all research strategies. It can range
from simple counts such as the frequency of occurrences to more complex data such as test scores,
prices or rental costs. Since the simple tables or diagrams that show the frequency of occurrence and
the statistical indices that enables comparisons, through establishing statistical relationships between
variables need to be analyzed and interpreted to be useful. Quantitative analysis techniques assist us in
this process and descriptive analysis used for the presentation of data after data were collected. The
data obtained through the questionnaires was first checked for completeness. The questionnaires
should find correctly filled and fit for analysis and coded. All the data entered into statistical package for
social sciences (SPSS) and analyzed using descriptive statistics before analyses are started. The
descriptive statistics used include mean and frequency to analyze the general information to investigate
the supply chain management practice and Pearson correlation and regression model analyses were
used to assess the impact of supply chain management practice on the case company‟s performance.
Results of the findings were then be presented and interpreted using tables, graphs, and charts.

3.1.4.2 Qualitative Data Analysis

Qualitative data refers to all data that has been collected through questionnaires such as nonnumeric
data, or data that have not been quantified and can be the product of the research

strategies. It can range from short list of responses to open ended questions and can be analyzed using
qualitative method, it allows us to develop theories. This may use inductive or deductive approaches.
The reasons for using this procedure are to make it easier for the reader

to compare and understand the findings. The data collected by open ended questionnaires were
analyzed qualitatively by synthesizing the data.

3.1.5 Validity and reliability

3.1.5.1 Validity
Validity is often defined as the extent to which an instrument measures what it asserts to measure
(Blumberg et al., 2005). Validity of a research instrument assesses the extent to which the instrument
measures what it is designed to measure (Robson, 2011). It is the degree to which the results are
truthful. So that it requires research instrument (questionnaire) to correctly measure the concepts
under the study (Pallant 2011). It encompasses the entire experimental concept, and establishes
whether the results obtained meet all of the requirements of the scientific research method. Validity
also refers to the extent to which the researcher gains access to their participants‟ knowledge and
experience, and is able to infer a meaning that the participant intended from the language that will used
by this person.

3.1.5.2 Reliability
The reliability refers to a measurement that supplies consistent results with equal values (Blumberg et
al., 2005). It measures consistency, precision, repeatability, and trustworthiness of a research
(Chakrabartty, 2013). Reliability refers to the extent to which the same answers can be obtained using
the same instruments more than one time.search is associated with high levels of reliability, then other
researchers need to be able to generate the same results, using the same research methods under
similar conditions. It is noted that “reliability problems crop up in many forms. Reliability is a concern
every time a single observer is the source of data, because we have no certain guard against the impact
of that observer‟s subjectivity” (Babbie, 2010, p.158).

3.1.6 Ethical Consideration

Ethical concerns will emerge as we plan in researches, seek access to organizations and to individuals,
collect, analyses and report our data. In the context of research, ethics refers to the appropriateness of
the researcher‟s behavior in relation to the rights of those who become the subject of the research
work, or are affected by it. Blumberg et al. (2005:92) define ethics as the „moral principles, norms or
standards of behavior that guide moral choices about the researcher‟s behavior and relationships with
others‟. Research ethics therefore relates to questions about how the researcher formulates and
clarifies his/her research topic, design his/herresearch and gain access, collect data, process and store
his/her data, analyses data and write up the research findings in a moral and responsible way and it has
to be both methodologically sound and morally defensible to all those who are involved. So researches
in business organizations/companies will be found to be very boring. In the country where importance
of research is still unidentified, the researcher expects to suffer a lot to convince the importance of this
research to improve business. Even in some managers and employees were not quite positive to handle
questionnaires. Some respondents even do not have awareness and understandings about supply chain
management strategy concepts and its importance.

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