Supply Chain Integration and Manufacturing Firm Performance in Emerging Economies: The Case of Ghana

Abstract

Supply Chain Integration has increasingly become important among manufacturing firms especially in developing economies. The poor integration of processes and partners in the supply chain may lead to poor operational performance of manufacturing firms. The study assessed the effect of supply chain integration on the performance of manufacturing firms in Ghana with Business process outcome as a mediating variable. The study adopted the descriptive cross-sectional research design where data was collected from 200 supply chain and procurement managers in manufacturing firms in Accra and Kumasi. The data was analysed using multiple regression analysis using SPSS 25.  The result of the study shows that a weak positive correlation exists between Supply Chain Integration and Organizational Performance which was statistically significant. The results of the regression model  shows that there is a weak positive linear relationship between supply chain integration  and business process outcome. The study further indicated that there is a partial mediation of business process outcome on the effect of Supply chain Integration on Performance. The findings of this study demonstrate the value of implementing integration of the supply chain in a manufacturing firm as integration of the supply chain can be a source of competitive advantage leading to superior success by enhancing operational efficiency of the firm. Managers of manufacturing firms in Ghana are expected to consider supply chain integration as a one corporate objective in order to excel in their operational performance through providing quality customer service, quality products, reduction of cost to meet market demand in a flexible manner.

Keywords: Supply Chain Integration, Performance, Manufacturing firms, Business Process Outsourcing

DOI: 10.7176/EJBM/14-12-11

Publication date:June 30^th 2022