Integrating developing country manufacturing industries into global supply chain
Abstract: Due to globalization
of manufacturing activities, the arena of competition and competitiveness
advantage is moving from firms towards supply chains and networks. With the
recent advancement of information and communication technologies this
participation are becoming as common business practice in developed countries
firms. Companies were more integrated into the world market for the global
nature of the sourcing, manufacturing and distribution. These changes create
both challenges and opportunities for the manufacturing industries in
developing countries. The objective of this paper is to examine the level of
inter-organizational and intra-organizational supply chain integration
practices in developing country, Ethiopia.
Design/methodology/approach: An industrial questionnaires survey was used
to collect the current practices of the manufacturing industries in Ethiopia as
an example of the developing countries. Descriptive statistics is primarily
used for the analysis.
Findings: Results show a low level of supply chain relationship both in
intra and inter organizational supply chain integration level among members.
Accordingly, such issues require much attention to facilitate a greater
integration within the supply chains in the Ethiopian manufacturing industries.
Research limitations/implications: The paper focuses on examining the
practices of Ethiopian manufacturing industries empirical data. The
interpretation of results should be taken with prudence.
Originality/Value: The manufacturing industry in developing countries
(MIDC) has been a part of the global supply chains for long time as a supplier
of raw material and manufacturer of primary products. Currently, the MIDC is
trying to access the different markets segment of the world even with new
products starting from their local market to the complex and dynamic
international market. Nevertheless, their supply chains are inefficient and
hence, their competitiveness level far from the norm expected. The supply chain
integration will bring positive impacts and benefits for manufacturers in
developing countries if it adopted properly.
Author: Fasika Bete Georgise, Thoben
Klause-Dieter, Marcus Seifert
Journal Code: jptindustrigg140029
