Assessing the Impact of Relational Governance on the Supply Chain Performances of Manufacturing Firms in Ghana

Abstract

Over the years, there have been many challenges in supply chain management across the globe especially in the developing countries. There were challenges of quality control, risk management, finding right distributors to handle distribution, fragmented markets and many others. The most challenging issue in the supply chain management is the unpleasant relationship between the firms and their partners leading to many inconsistencies, uncertainties and losses in their operations and transactions leading to the assessment of both the direct and indirect impact of relational governance on supply chain performance of the manufacturing firms in Ghana. The study sought to assess the impact relational governance has directly and indirectly on supply chain performance. Data were collected and gathered through a survey questionnaire responded by 147 manufacturing firms in Ghana. The structural equation modelling was used to test the hypothesis and also validate the results. Findings indicate that the relational governance has a positive effect on supply chain performance and at the same time has an indirect effect on supply chain performance through both information sharing and quality of information. The study provides a hard evidence that the higher levels of information sharing and quality of information can lead to enhanced effect of relational governance on supply chain performance.

Keywords - Relational Governance, Information Sharing, Quality of Information, Supply Chain Performance, Manufacturing Firms.

DOI: 10.7176/EJBM/12-12-01

Publication date: April 30^th 2020