Performance Implications of Supply Chain Management Practices among Manufacturing Firms in Ghana

Abstract

The purpose of this study was to assess the causal relationship between five dimensions of supply chain management (strategic supplier relationship, quality of information sharing, level of information sharing, customer service relationship and postponement) and the performance of manufacturing firms in the Kumasi metropolis of Ghana. Data was collected using questionnaires responded to by 87 manufacturing firms in Kumasi. The relationships were modelled into a framework and hypothesised. A 7-point Likert Scale was used to measure the constructs. Pearson’s Correlations and Ordinary Least Square (OLS) Regression analyses were conducted to test the hypothesis. The findings revealed that SSR and Post did not have any positive influence on OP. However, the result suggested that CR, IS, and IQ positively influence OP of manufacturing firms in Kumasi. The results also found only two hypotheses (H2 and H3) were supported, with the remaining three not supported. The finding that strategic supplier relationships have no positive effect on OP is suggestive that managers should invest significant resources to build a strong relationship with their suppliers. Connected to this path is to ensure that the quality of information shared with their trading partners is equally improved to enhance collaboration. While postponement has its attendant benefits for the organisation, it is also apparent from the study that managers must determine optimal postponement by examining the associated costs within various supply chain configurations according to the market needs. This study has provided evidence to show the impact of supply chain management practices on the performance of firms in an emerging manufacturing industry. This study may be one of the key supply chain related research projects conducted on the manufacturing industry in the Kumasi metropolis. The outcomes of this research have far-reaching implications for manufacturing companies in other regions of the country in an era where Ghana is attempting to use industrialisation as a major driver for economic development.

Keywords: Supply Chain Management Practices, Supply Chain, Organizational Performance, Manufacturing Firm, Firm Performance

DOI: 10.7176/EJBM/14-18-06

Publication date:September 30^th 2022