Leadership in Supply Chain Integration: Mediating the Impact of SCM Practices on Agribusiness Performance in Ethiopia

This study investigates the mediating role of leadership in supply chain integration (SCI) within the relationship between supply chain management practices (SCMPs) and agribusiness performance in Ethiopia’s Oromia region. Drawing on a stratified sample of 256 agribusiness leaders, data were collected via structured questionnaires assessing SCMPs (information sharing, customer relationships, supplier partnerships, and responsiveness), leadership-driven SCI, and performance. Structural equation modeling revealed that information sharing and customer relationship management significantly and directly enhanced both supply chain integration and performance. Leadership-driven SCI partially mediated the positive relationships between information sharing and performance, and customer relationship management and performance, demonstrating how leaders fostering integration amplify SCMP efficacy. Crucially, strategic supplier relationships did not significantly influence SCI, though they directly improved performance. Moreover, supply chain responsiveness directly benefited performance, but SCI negatively mediated its relationship with performance. This suggests a trade-off where rapid responsiveness in this context may inadvertently hinder deeper integration. The study reveals that leadership is vital for SCI, especially in the context of Ethiopia’s infrastructural and climatic challenges. These findings advance organizational leadership theory by positioning leadership as a dynamic capability, bridging resource-based and network theories, and offering a context-dependent view of the integration role of supply chain responsiveness. Practical implications advocate for leadership development that emphasizes stakeholder coordination, customer engagement, and context-specific, subtle SCMP adaptations, promoting sustainable performance gains for agribusinesses in similar developing contexts.