Journal of Economic and Social Development (Varaždin) (Mar 2024)
Determinants of S&OP Efficiency in Sub-Saharan Africa's Apparel Value Chain
Abstract
There is a dearth of rigorous empirical studies that directly examine the contextual variables that drive sales and operations processes in entrepreneurial firms operating in the apparel value chain. This study aimed to identify and understand the influential variables that impact S&OP efficiency in apparel firms in sub-Saharan Africa. The study adopted a cross-sectional quantitative approach utilizing a structured questionnaire to collect data from 398 S&OP experts working in entrepreneurial firms operating along apparel value chains in six countries in the Sub-Saharan Africa region. The findings revealed moderate, positive, and statistically significant correlations between S&OP effectiveness and various factors, including organizational culture and personnel. Technological readiness, organizational alignment, demand planning practices, performance metrics, time/planning horizons, and data integrity. However, factors such as the S&OP structure, supply chain planning practices, organizational systems, and S&OP governance showed statistically insignificant correlations with S&OP effectiveness. This finding suggests that their influence may be less pertinent in this context. The study concludes that enhancing S&OP effectiveness in firms within sub-Saharan Africa's apparel industry can be achieved by dedicating resources to improve variables that have a significant impact. This study underlines the necessity for companies to understand locally relevant factors rather than relying on a standardized approach to S&OP implementation. This study contributes to the literature by shedding light on S&OP determinants within this under-researched context and suggests areas for further research across different industries and markets
