Effect of Supply Chain Integration on Organization Performance:A Mediating Role of Competitive Advantage. An Evidence from Manufacturing Firms in Ethiopia.

Authors

  • Gezew Megerse Bule Hora Univerity, Ethiopia
  • Mesfin Legesse Bule Hora Univerity, Ethiopia

DOI:

https://doi.org/10.56778/rjslr.v3i3.585

Abstract

This study aimed to fill a knowledge gap in the literature by examining the effect of SCI on organizational performance with competitive advantage. It used a mixed approach and an explanatory and descriptive research design. The study collected data from both primary and secondary sources and used probability sampling, specifically simple random sampling, to examine the relationship between SCI ingredients and organizational performance. The survey was conducted using self-administered and structured, closed-ended questionnaires that were distributed to respondents. Amos in SPSS was used to evaluate the data. While SEM (structural equation model) analysis was used to characterize the causal influence between and among the dependent and independent variables under inquiry, correlation analysis was used to determine the direction and intensity of the association between variables. According to the study, all SCI components and organizational performance have a positive and statistically significant relationship. Regarding SEM analysis, the study discovered that SCI had a favorable and noteworthy impact on organizational performance and competitive advantage. The study concluded that enhanced organizational performance is a result of the implementation of SCI and competitive advantage. It is advised that businesses consistently apply SCI correctly to enhance performance and obtain a competitive edge.

References

Amentae, T. K., Gebresenbet, G., & Abdela, N. J. (2024). Impact of Supply Chain Management on Business Sustainability: Case of Water Bottling Companies in and Around Finfinnee, Ethiopia. Logistics, 9(1), 5. https://doi.org/10.3390/logistics9010005

Anwar, U. A. A., Rahayu, A., Wibowo, L. A., Sultan, M. A., Aspiranti, T., Furqon, C., & Rani, A. M. (2025). Supply chain integration as the implementation of strategic management in improving business performance. Discover Sustainability, 6(1), 101. https://doi.org/10.1007/s43621-025-00867-w

Busse, C., Schleper, M. C., Weilenmann, J., & Wagner, S. M. (2017). Extending the supply chain visibility boundary: Utilizing stakeholders for identifying supply chain sustainability risks. International Journal of Physical Distribution & Logistics Management, 47(1), 18–40. https://doi.org/10.1108/IJPDLM-02-2015-0043

Chauhan, C., Kaur, P., Arrawatia, R., Ractham, P., & Dhir, A. (2022). Supply chain collaboration and sustainable development goals (SDGs). Teamwork makes achieving SDGs dream work. Journal of Business Research, 147, 290–307. https://doi.org/10.1016/j.jbusres.2022.03.044

Cunha, F., Dinis-Carvalho, J., & Sousa, R. M. (2023). Performance Measurement Systems in Continuous Improvement Environments: Obstacles to Their Effectiveness. Sustainability, 15(1), 867. https://doi.org/10.3390/su15010867

Donkor, F., Papadopoulos, T., & Spiegler, V. (2024). Supply chain integration and supply chain sustainability relationship: A qualitative analysis of the UK and Ghana pharmaceutical industry. Production Planning & Control, 35(6), 535–558. https://doi.org/10.1080/09537287.2022.2105762

Farida, I., & Setiawan, D. (2022). Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 163. https://doi.org/10.3390/joitmc8030163

Hendijani, R., & Saeidi Saei, R. (2020). Supply chain integration and firm performance: The moderating role of demand uncertainty. Cogent Business & Management, 7(1), 1760477. https://doi.org/10.1080/23311975.2020.1760477

Mahdi, O. R., & Nassar, I. A. (2021). The Business Model of Sustainable Competitive Advantage through Strategic Leadership Capabilities and Knowledge Management Processes to Overcome COVID-19 Pandemic. Sustainability, 13(17), 9891. https://doi.org/10.3390/su13179891

Menz, M., Kunisch, S., Birkinshaw, J., Collis, D. J., Foss, N. J., Hoskisson, R. E., & Prescott, J. E. (2021). Corporate Strategy and the Theory of the Firm in the Digital Age. Journal of Management Studies, 58(7), 1695–1720. https://doi.org/10.1111/joms.12760

Mukhsin, Moh., & Suryanto, T. (2022). The Effect of Sustainable Supply Chain Management on Company Performance Mediated by Competitive Advantage. Sustainability, 14(2), 818. https://doi.org/10.3390/su14020818

Naslund, D., & Norrman, A. (2019). A performance measurement system for change initiatives: An action research study from design to evaluation. Business Process Management Journal, 25(7), 1647–1672. https://doi.org/10.1108/BPMJ-11-2017-0309

Qian, C., Seuring, S., & Wagner, R. (2021). Reviewing interfirm relationship quality from a supply chain management perspective. Management Review Quarterly, 71(3), 625–650. https://doi.org/10.1007/s11301-020-00195-5

Ralston, P. M., Schwieterman, M., Bell, J. E., & Ellram, L. M. (2023). The building blocks of a supply chain management theory: Using factor market rivalry for supply chain theorizing. Journal of Business Logistics, 44(1), 141–159. https://doi.org/10.1111/jbl.12320

Rua, O. L., & Santos, C. (2022). Linking brand and competitive advantage: The mediating effect of positioning and market orientation. European Research on Management and Business Economics, 28(2), 100194. https://doi.org/10.1016/j.iedeen.2021.100194

Sang, B., Md Noor, R., Ghazali, E. M., & Aghamohammadi, N. (2024). How does supply chain collaboration improve innovation performance of SMEs? The roles of absorptive capacity and business environment. Journal of Innovation & Knowledge, 9(4), 100607. https://doi.org/10.1016/j.jik.2024.100607

Taylor, J. (2025). Systems Approach to Modern Management: A Proposed Framework for Application. Procedia Computer Science, 268, 181–189. https://doi.org/10.1016/j.procs.2025.08.195

Thomran, M., Alshallaqi, M., Al-Mamary, Y. H., & Abdulrab, M. (2022). The key enablers of competitive advantage formation in small and medium enterprises: The case of the Ha’il region. Frontiers in Psychology, 13, 1030405. https://doi.org/10.3389/fpsyg.2022.1030405

Tukamuhabwa, B., Mutebi, H., & Kyomuhendo, R. (2023). Competitive advantage in SMEs: Effect of supply chain management practices, logistics capabilities and logistics integration in a developing country. Journal of Business and Socio-Economic Development, 3(4), 353–371. https://doi.org/10.1108/JBSED-04-2021-0051

Wang, M., Wang, B., Kim, N., Chan, R., Wang, M., & Shi, Y. (2024). Supply chain integration capability: A three-stage circular model of visibility, agility, and flexibility. Journal of General Management, 50(1), 78–89. https://doi.org/10.1177/03063070241272383

Downloads

Published

2025-12-31

How to Cite

Megersa, G., & Mesfin LEGESSE. (2025). Effect of Supply Chain Integration on Organization Performance:A Mediating Role of Competitive Advantage. An Evidence from Manufacturing Firms in Ethiopia. RADINKA JOURNAL OF SCIENCE AND SYSTEMATIC LITERATURE REVIEW, 3(3), 745–750. https://doi.org/10.56778/rjslr.v3i3.585