Integrating developing country manufacturing industries into global supply chain

Abstract

Purpose: 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.