Measuring Supply Chain Coordination in Milk and Dairy Industries: A Confirmatory Factor ModelHabtamu Lemma*
Punjabi University, Business Management, Punjabi University, Patiala, Punjab 147002, India
- *Corresponding Author:
- Habtamu Lemma
Punjabi University, Business Management
Punjabi University Patiala, Punjab 147002, India
Tel: 0175 304 6366
E-mail: [email protected]
Received date February 07, 2015; Accepted date March 04, 2015; Published date March 10, 2015
Citation: Lemma H (2015) Measuring Supply Chain Coordination in Milk and Dairy Industries: A Confirmatory Factor Model. Int J Econ Manag Sci 4:244. doi: 10.4172/2162-6359.1000244
Copyright: © 2015 Lemma H, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Coordination within the supply chain is a strategic weapon to the problem that occurs due to lack of supply chain coordination. Since supply chain consists of various organizations, it can satisfy customers’ needs, only when the whole of its partners becomes coordinated. To cope up and endure in a business environment where competition is high, firms should decrease the flow of interruption within upstream and downstream supply chain activities. This kind of endurance in such business environment can only be achieved by means of organized supply chain coordination. In this paper, we investigated empirically the major factors affecting supply chain coordination in milk and dairy industries. Based on an extensive literature review, the study created 15 measured variables and offered a comprehensive model to examine four key constructs. The data were collected from 330 milk suppliers, processors, and retailers in the central part of Ethiopia and the result were validated using rigorous statistical techniques. To approach this, an exploratory factor analysis (EFA) has been applied to classify factors for major constructs. And also, Structural Equation Modeling (SEM) was employed to assess the convergent validity through Confirmatory Factor Analysis (CFA) using AMOS version 4.