Improving Supply Chain Integration For Competitiveness In The African Continental Free Trade Area - The Case Of Ethiopian Manufacturing Industries In Addis Ababa
The manufacturing industries in developing countries have been facing unprecedented competitivenessrnpressurerngeneratedrnbyrndifferentrnnewrnbusinessrntrends.rnTorncopernwithrnthesernpressures,rnthernrnmanufacturingrnindustriesrnhadrntriedrntornupgraderntheirrnoperationsrnbyrnusingrndifferentrnmanufacturingrnrntechniques.rnDespiternthesernefforts;rnthernmanufacturingrnindustriesrnhavernnotrnyetrnmaderntheirrnsharernofrnrnmarkets.rnLikerninrnanyrnotherrndevelopingrncountry,rnmanufacturingrnindustriesrninrnEthiopianrnarernfacingrnrnthernsamernrnchallenge. A number of causes for the low performance of the Ethiopian manufacturingrnindustries had been identified by different researchers. One of the causes identified by these researchersrnwasrnarnweakrnSupplyrnChainrnIntegrationrn(SCI).rnIn the near future, on top of the existing challenges of the Ethiopian manufacturing firms, otherrnchallenges from the African Continental Free Trade Area (ACFTA) are going to emerge. One ofrnthese challenges could be fierce competition from African products that enter into Ethiopia withrnvery low border tariffs and import duties. Unless the Ethiopian manufacturing firms get preparedrnin every aspect to compete in the free market, their existence would be in question. With this understanding,rnrnthis research was conducted with the main objective of identifying the aggregaterncauses of weak SCI, identifying challenges that could emerge with ACFTA, and finally developingrna model that can help to improve the SCI for competitiveness in ACFTA. The main reason forrnselecting the SCI model as a technique among the different techniques was that effective supplyrnchain management (SCM) and supply chain integration (SCI) are becoming increasingly criticalrnfactors for business success. Besides, the issue of competitiveness in ACFTA is the issue of competitivenessrninrnthernSupplyrnchain.rnThe primary data for this research was collected from 27 managers of 14 different manufacturingrnfirms by administering a questionnaire. Secondary data was also collected from different onlinernsources. The data collected were more qualitative which were analyzed with qualitative data analyzingrnprocedure.rnThernquantitativerndatarnwerernalsornanalyzedrnusingrnExcelrntools.rnrnIn the end, the research has identified the aggregate causes for the weak SCI of Ethiopian manufacturingrnindustries;rnhavernalsornidentifiedrnpossiblernChallengesrnthatrncouldrnemergernwithrnACFTA.rnAtrnrnlastrnbutrnnotrnleast, arnSCIrnmodel hadrnbeenrndeveloped.rnrnFinally,rnthernresearcher hasrnfoundrnoutrnthatrnthernrnbenefitsrnofrnSCIrnandrnthernbenefitsrnofrnACFTA tornbernsimilar,rnwhichrnledrnthernresearcherrntornconcludernthatrnrnSCIrnandrnACFTArnarerncomplementary.rnInrnotherrnwords, anrnefficientrnSCIrnhelpsrnforrncompetitivenessrninrnrnACFTA;rninrnreversernthernACFTArnalsornsupportsrnthernimprovementrnofrnSCI.