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The Impact Of Supply Chain Drivers On Organizational Performance
According to the United States government which is cited by (Marc Levinson, 2017) in the congressional research service manufacturing sector defined as ‘’comprises establishments engaged in the mechanical, physical, or chemical transformation of material, substances, or components into new products.’’ However, manufacturing firms have faced numerous difficulties. According to Tekeba Eshetie (2018) in the study of Ethiopia’s manufacturing industry opportunities, challenges, and way forward; manufacturing firms have faced various challenges such as weak supply chain integration, Limited research on manufacturing industries, competitiveness, and others. According to Sunil and Chopra (2007) manufacturing firms have faced the problem of efficiency and responsiveness. According to S. M. Sohel Rana et al., (2016) supply chain drivers were the basic determinant of efficiency and responsiveness. Sunil Chopra and Meindl (2007) stated in their book about six drivers of supply chain performance; a company can enhance its responsiveness and efficiency by the good management of six drivers of supply chain performance.
Some studies were conducted abroad related to the impact of supply chain drivers on organizational performance. However, it is not strictly directed with the researcher study; the impact of supply chain drivers on organizational performance in the case of some selected large manufacturing companies. For instance, Impact of Supply Chain Drivers on Retail Supply Chain Performance (S. M. Sohel Rana, and Abdullah Bin Osman, 2018). In their study, the researchers include five variables such as supplier, inventory management, information technology, transportation, and coordination. The findings generated from the empirical data revealed that all the supply chain drivers had a significant effect on retail supply chain performance. Drivers of Supply Chain Performance Enhancing Organizational Output the case of the manufacturing sector (Kashif Mahmood, 2013).
He concluded that there were six drivers of supply chain performance in the literature that need to be managed to enhance organizational performance. These drivers were; Facilities, Inventory, Transportation, Information, Sourcing, and pricing. These drivers were closely related to each other and have a greater positive impact on organizational performance. Companies need to find a situation where both efficiency and responsiveness in supply chain practices are at an average level to increase their performance. Therefore, a firm’s performance can be achieved through better management of supply chain drivers. Mohammad A. (2013) studied the impact of supply chain performance drivers and value chain on companies: the case of the food industry in Jordan.
Mohammad A. (2013) concluded the food processing industry which is found in Jordan depends on the performance of supply chain drivers. Mohammed Mojahid Hossain Chowdhury et al., (2019) tried to assess drivers of supply chain performance analysis in the hospitality and tourism industry. The study concluded that supply chain drivers were basic to create a competitive advantage in the hospitality and tourism industry.
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