The Role of Supply Chain Visibility in Enhancing SME Resilience During Disruptions: A Case Study of the Afar Regional State, Ethiopia.
Keywords:
Supply Chain Visibility, SME Resilience, Afar Regional State, Information Quality, Ethiopia Logistics, Djibouti Corridor.Abstract
This study examines The Role of Supply Chain Visibility in Enhancing SME Resilience during Disruptions: A Case Study of the Afar Regional State, Ethiopia. Small and Medium Enterprises (SMEs) in the Afar Regional State operate within a volatile logistics environment, serving as a vital link in Ethiopia’s international trade corridor. However, frequent supply chain disruptions ranging from infrastructure deficits to environmental shocks threaten their survival. While Supply Chain Visibility (SCV) is theorized to bolster resilience, empirical evidence in the context of regional, resource-constrained economies remains scarce. This study investigates the impact of three dimensions of SCV Information Sharing (IS), Connectivity (CON), and Information Quality (IQ) on the resilience of SMEs in the Afar Regional State. A mixed-methods research design was employed, utilizing a pragmatic approach. Quantitative data was collected via structured Likert-scale questionnaires from a stratified random sample of 150 SME managers/owners in key hubs including Semera, Logia, and Mille. The data were analyzed using Descriptive Statistics, Pearson Correlation, and Multiple Linear Regression (MLR) via SPSS. Standard diagnostic tests, including normality, multicollinearity (VIF), and heteroskedasticity, were conducted to ensure model validity. Descriptive results reveal that while relational information sharing is moderate (M=3.12), technological connectivity is significantly low (M=2.45). Regression analysis indicates that SCV dimensions collectively explain 56.2% of the variance in SME resilience (R2=.562, p<.001). Notably, Information Quality emerged as the strongest predictor of resilience (β=.422), followed by Information Sharing (β=.285), while Connectivity showed a significant but weaker influence (β=.112). These results suggest that in the Afar region, the accuracy and utility of shared data are more critical for recovery than digital infrastructure alone. The study concludes that SCV is a fundamental driver of SME survival in the Djibouti-Addis corridor. It is recommended that the Afar Regional Government invests in digital infrastructure to bridge the "visibility gap," while SME managers should focus on enhancing the reliability of their information-sharing networks. The findings provide a framework for policy interventions aimed at transforming the Afar region from a transit route into a resilient economic hub.
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