Supply Chain Management and Organizational Performance of Manufacturing Companies in Mogadishu- Somalia

ABSTRACT 

The study assessed the effect of supply chain management on organisational performance of manufacturing companies in Mogadishu Somalia. It was guided by three specific objectives, that included i) to examine the effect of strategic supplier partnership on organisational performance of manufacturing companies in Mogadishu Somalia, (ii) to establish the effect of supply chain information management on organisational performance of manufacturing companies in Mogadishu Somalia, and (iii) to assess the effect of logistics management on organisational performance of manufacturing companies in Mogadishu Somalia. This research employed cross-sectional, survey and descriptive research design to describe the variables and the questionnaire and interview guide were used as the research instruments, it used a population of 160 and a sample size of 114 respondents. Descriptive statistics were used in this study included frequencies, means and regression analysis on variables. The findings revealed the following: The findings indicated that strategic supplier partnership significantly affects the organisational performance of manufacturing companies in Mogadishu Somalia (rsquare=0.274, Sig=000), this effect therefore implies that strategic supplier partnership highly contribute to the organisational performance of manufacturing companies of Mogadishu Somalia, the findings revealed that there is a significant effect supply chain information management has on organisational performance of manufacturing companies of Mogadishu Somalia (r-square=0.372, Sig=000), findings of this study proved a positive significant effect logistics management has on organisational performance of manufacturing companies in Mogadishu Somalia (r-square=0.230, Sig=000). Still the conclusions were that; there is a positive significant effect of strategic supplier partnership has on organisational performance of manufacturing companies of Mogadishu Somalia, effective supply chain information management significantly improves organisational performance of manufacturing companies of Mogadishu Somalia, logistics management highly affects the organisational performance of manufacturing companies of Mogadishu Somalia Somalia. The researcher recommended that the: the manufacturing companies should strategically analyze each supplier to determine which suppliers are best positioned to provide the greatest return to the company through closer collaboration, other than having a „one size fits all‟ strategy for supplier management, redundancy is a particular matter that should be addressed as manufacturing companies in Mogadishu Somalia. The study contributed to new knowledge in the following ways; the following are the supply chain management methods adopted in maintaining the organizational performance of manufacturing companies in Mogadishu Somalia; strategic supplier partnership, supply chain information management and logistics management. Supply chain information management is an important multi-disciplinary system in modern business management and research in Africa. The focus on, and relationships with, different stakeholder groups are of great importance to all businesses, regardless of size or whether they supply products and services.

TABLE OF CONTENTS

DECLARATION......................................................................................................i

APPROVAL...........................................................................................................ii

DEDICATION ...................................................................................................... iii

ACKNOWLEDGEMENTS........................................................................................ iv

TABLE OF CONTENTS ..........................................................................................v

LIST OF TABLES ..................................................................................................x

LIST OF ACRONYMS............................................................................................ xi

ABSTRACT......................................................................................................... xii

CHAPTER ONE ...............................................................................................1

INTRODUCTION............................................................................................1

1.0 Introduction...................................................................................................1

1.1.1 Background of the Study..............................................................................1

1.1.1 Historical Perspective...................................................................................1

1.1.2 Theoretical perspective ................................................................................3

1.1.3 Conceptual Perspective ................................................................................3

1.1.4 Contextual Perspective.................................................................................5

1.2 Problem Statement.........................................................................................6

1.3 Purpose of the study ......................................................................................7

1.4 Objectives of the study ...................................................................................7

1.5 Research Questions ........................................................................................7

1.6 Hypothesis of the study ..................................................................................7

1.7 Scope of the study .........................................................................................8

1.7.1 Geographical Scope .....................................................................................8

1.7.2 Subject Scope .............................................................................................8

1.7.3 Time Scope.................................................................................................8

1.7.4 Theoretical Scope........................................................................................8

1.8 Significance of study.......................................................................................8

1.9 Operational Definition of key terms .................................................................9

CHAPTER TWO ............................................................................................10

LITERATURE REVIEW .................................................................................10

2.0 Introduction................................................................................................. 10

2.1 Theoretical Review ....................................................................................... 10

2.2 Conceptual frame work.................................................................................12

2.3 Strategic supplier partnership management and performance of organizations. 13

2.4 Supply chain information management and performance of organizations ....... 15

2.5 Effect of logistics management on performance of manufacturing organizations .................................................. 17

2.6 Related studies on Supply chain management practices and organizational performance ................................. 21

2.7 Research Gaps ............................................................................................. 24

CHAPTER THREE .........................................................................................25

METHODOLOGY...........................................................................................25

3.1 Introduction................................................................................................. 25

3.2 Research Design .......................................................................................... 25

3.2 Research population ..................................................................................... 25

3.3 Sample Size ................................................................................................. 26

3.4 Sampling procedure ..................................................................................... 26

3.5 Sources of data............................................................................................ 27

3.5.1 Primary data ............................................................................................. 27

3.6 Data collection Instrument............................................................................ 27

3.6.1 Questionnaire............................................................................................ 27

3.7 Validity and Reliability of research Instrument................................................ 28

3.7.1 Validity of Research Instrument.................................................................. 28

3.7.2 Reliability of Research Instrument .............................................................. 28

3.8 Data Collection Procedure............................................................................. 29

3.9 Data Analysis ............................................................................................... 30

3.11 Ethical Consideration .................................................................................. 30

CHAPTER FOUR...........................................................................................31

DATA PRESENTATION, ANALYSIS AND INTERPRETATION........................31

4.0 Introduction................................................................................................. 31

4.1 Response Rate ............................................................................................. 31

4.2 Demographic characteristics of the respondents............................................. 32

4.3 Supply chain management............................................................................ 33

4.4 Organizational performance of manufacturing companies ............................... 35

4.4 Objective One; effect of strategic supplier partnership on organizational performance of manufacturing companies in Mogadishu Somalia .......................... 38

4.5 Objective Two; the effect of supply chain information management on organisational performance of manufacturing companies in Mogadishu Somalia..... 40

4.6 Objective Three; effect of logistics management on organizational performance of manufacturing companies in Mogadishu Somalia.......... 42

4.7 Multiple Regression ...................................................................................... 44

4.8 Normality test .............................................................................................. 45

CHAPTER FIVE ............................................................................................47

DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS..........................47

5.0 Introduction................................................................................................. 47

5.1 Discussions .................................................................................................. 47

5.1.1 Objective one; effect of strategic supplier partnership on organisational performance of manufacturing companies .......................... 47

5.1.2 Objective two; effect of supply chain information management on organizational performance of manufacturing companies............................. 49

5.1.3 Objective three; effect of logistics management on organizational performance of manufacturing companies.......................... 51

5.2 Conclusions.................................................................................................. 53

5.2.1 Objective one; the effect of strategic supplier partnership on performance of manufacturing companies................................ 53

5.2.2 Objective two; the effect of supply chain information management on performance of manufacturing companies ............................................ 53

5.2.3 Objective three; the effect of logistics management on performance of manufacturing companies.................................. 54

5.3 Recommendation ......................................................................................... 54

5.4 Contribution to knowledge ............................................................................ 54

5.5 Limitations of the study ................................................................................ 55

5.6 Areas for further research............................................................................. 55

REFERENCES .....................................................................................................57

APPENDIX I: RESEARCH QUESTIONNAIRE ..........................................................61