Research On Supply Chain Integration And Export Performance On Agricultural Products In Tanzania

The intention of this study was to test and validate the relationship between supply chain integration and export performance in the developing countries which suffer from trade imbalance.Imbalance in trade is embodied in the fact that imports are rapidly increasing and export growth is very low.One of the challenges that particularly small and medium firms face in developing countries is short of resource to make firms competitive and meet the required product standards in the international markets.In Tanzania,agriculture employs around 65 percent of the population.However agricultural sector suffers from number of challenges including insufficient markets for agricultural produced which affects the farmers and other actors of the food supply chain.The study considers supply chain integration as an effective method to improve export performance in Tanzania,especially influences agricultural products export.The study was guided by three theories as follows:resource based view,dynamic capability theory and relational exchange theory.The three theories complement each other such that resource based view promotes the importance of resources in enhancing competitive advantage,however having resources was later found insufficient for creating competitive advantage and better performance.In addition to resources firms need to create capabilities as business environment changes.Creating capability requires constant learning and better deployment of resources;this calls for dynamic capability theory.Resources needed for attaining competitive advantage are in some cases owned by business partner in the supply chain.To get access to such resources business needs to develop relationship which is mutually beneficial and justified the application of relational exchange theory.The study measured impact of internal integration,supplier integration and supply chain performance on export performance.The study also measured the moderation effect of demand uncertainty,process innovation and trust;the study also measured the mediation effect of supply chain performance.Trust is important aspect in relationship developing and reducing the opportunistic behavior.Demand uncertainty is inevitable in business processes.Innovation separates high performing from the average and non performing firms.This study investigated influence of process innovation since it is partially covered in the literature and it was considered best optional particularly in developing country in which technological innovation is scarce.The methodology adapted was quantitative with empirical study and deductive approach which started with theories and assumptions testing through data analysis.Data were collected from the senior supplies and marketing managers through to the chief executive managers.The population of the study included agricultural exporting firms located in Dares Salaam from which a sample of 128 companies was drawn.In the data analysis procedure the study used structural equation modeling(SEM)and IBM SPSS v.23.The study dwelt on validity and the reliability of data in order to enhance the quality of this quantitative empirical research.Validity measures included in the study were;content,internal and convergent validity.Reliability represents whether data can pass the statistical tests and is qualified for analysis.Research findings support the central idea that integration elements have positive and significant effect on export performance.Internal integration,supplier integration had positive and significant relationship with export performance.Similarly supplier integration and internal integration had positive and significant relationship with supply chain performance.However,the association between supply chain integration and export performance was insignificant.Trust had moderation effect in the relationship between internal integration and supply chain performance and between supplier integration and supply chain performance;Process innovation had positive moderation effect in the relationship between supply chain performance and export performance.This implies that firms in the developing countries where technological innovation is scarce have opportunity to improve their export performance through process innovation.Demand uncertainty was found to moderate the relationship between internal integration and export performance however the direction of effect was positive and not negative as predicted.Lastly this study established intervention effect of supply chain performance in the relationship between supplier integration,internal integration and export performance.Mediation of supply chain performance reflects the contribution and importance of operational efficiency in export performance.Supply chain performance is associated with customer satisfaction which is important in winning the international markets.Managerial implications of the study include the importance of trust in building relationship between the functional departments of the organization.The importance of functional collaboration includes joint problem solving and efficient utilization of firm resources.Internal integration forms the basis for external integration.Secondly,supplier integration has positive relation with operational efficiency which include on time delivery of goods and operations at lower costs.Thirdly,supplier integration has positive contribution in enhancing exports performance.This study concludes that firms in developing nations have chances to improve export performance through supply chain integration which need to start within the organization and attract the external integration.Resources have always been scarce however sharing information and knowledge regarding business operations could have great impact on firm performance in the domestic and international markets.Integrated organizations with high level of trust tend to share more specific information including number of orders in certain period rather than demand forecast figure which tend to be more general.