Service Supply Chain Management Practices and Organizational Performance in the Nigerian Telecommunications Industry

Obisesan, Ololade Elizabeth (2019)



The study examined Service Supply Chain Management (SSCM) Practices adopted by the Nigerian telecommunications industry and identified the challenges in the adoption of these service supply chain management practices. It also evaluated the relationship between business performance and service supply chain. These were with the view to examining the effect of SSCM practices on organisational performance in the Telecommunications Industry. The study used primary data. The study population consisted the employees of the four leading Global System of Mobile (GSM) service providers, which are MTN, GLOBACOM, AIRTEL and 9MOBILE with a population figure of 4578 employees. A sample size of three hundred and sixty-eight (368) was obtained using Taro Yamane’s formula. The research was carried out in Lagos state, where these telecommunications firms have their headquarters. Purposive sampling technique was employed in selecting the departments for the study, while random sampling technique was employed in getting the number of respondents from each department of the firm. The data for this study were collected using a structured questionnaire. Data collected were analysed using mean, percentages and Pearson’s correlation coefficient, Analysis of Variance (ANOVA) and Ordinary least square regression analysis. The results revealed that strategic supplier partnership (= 4.38), quality of information sharing (= 3.72), extent of outsourcing (= 3.60) and postponement (3.35) were the service supply chain management practices adopted by the firms in the Telecommunication Industry. Also, the study showed that the major challenges in the adoption of these practices were; lack of cooperation among the supply chain members (74%), lack of interest among the suppliers (64%), increasing the firms Just-In-Time (JIT) capabilities (57%), and lack of sophisticated information system for information sharing among service supply chain members (51.7%). Finally, the results showed strategic supplier partnership (t = 3.179, p < 0.05) and customer relationship (t = 2.576, p < 0.05) had a positive and significant effect on organisational performance. The study concluded that SSCM practices are vital tools for enhancing the organisational performance of Telecommunication firm in Nigeria