Optimization Strategies for Supply Chain Management of Chinese Enterprises in Ethiopian Industrial Parks

Abstract

This MBA thesis investigates supply chain challenges and optimization strategies for Chinese enterprises operating in Ethiopian industrial parks through a mixed-methods census approach comprising 15 questionnaires and 5 interviews that achieved a 100% response rate. The study validates the SCOR model while identifying Ethiopia-specific adaptations required for emerging market contexts. Quantitative analysis reveals critical challenges with an overall mean score of 4.37 out of 5 (91% agreement), led by foreign exchange shortages (mean 4.60, 100% agreement) causing 3-6 month import delays, transportation bottlenecks (4.47, 93%) where Hawassa-Addis roads takes 2 days instead of 6 hours, infrastructure deficits (4.40, 93%) including daily 4-6 hour power cuts, and raw material dependency (4.33, 87%) with 90% imports required. A significant 1.07-point challenge-performance gap exists between challenges (4.37) and current strategies (3.30). Robust strategies outperform agility (3.53 vs 3.33), with buffer inventory management (3.80, 80% agreement) serving as the primary forex survival tactic and multiple supplier sourcing (3.53, 67% agreement) achieving 40% stockout reduction. Regression analysis explains 78% of performance variance, identifying robustness as the strongest predictor (β=0.52). Strategic conclusions confirm foreign exchange allocation as the primary bottleneck surpassing infrastructure impact, robustness of strategies provide immediate resilience in institutional voids, medium-sized enterprises leading optimization efforts, and local supplier collaboration offering untapped potential demonstrated by 25% delivery improvements. Actionable recommendations for Chinese enterprises include immediate implementation of 3- month forex buffers (100% interview validated), diversification to 2-3 suppliers per input (40% stock out reduction proven), and ERP pilots before Internet of Things investments (7% gains achieved). For the Ethiopian government, priority actions encompass 30-day forex guarantees for park exporters, construction of industrial corridors with dedicated power and truck lanes, and single-window digital customs reducing clearance from 7 to 2 days. The study provides the first empirical benchmark for Chinese-African supply chain resilience, a 78% predictive performance model, and a policy roadmap positioning Ethiopian parks as successful Belt and Road initiatives, with expected 25-40% performance uplift through synchronized enterprise and institutional execution.