An empirical assessment of supply chain effectiveness using exploratory factor analysis (EFA) approach: The case of selected beverage firms in Ghana

Abstract

There has been little contribution to academic debate and knowledge in terms of what constitutes supply chain (SC) effectiveness. This study therefore assessed supply chain effectiveness using selected beverage firms in Accra, Ghana. A quantitative research technique was primarily employed in this study. Participants were senior employees in the selected beverage firms. The simple random sampling procedure was used to draw 214 respondents from the population. Exploratory Factor Analysis (EFA) was the main statistical tool of data analysis and presentation. Results reveal that SC effectiveness is defined by two constructs. The first construct is SC strategy and this accounts for the highest variance (53.?%) in SC effectiveness. This construct is made up of variables relating to the general approach and strategy to supply chain management. The second construct is SC outcomes, and this accounts for 20.1% of the total variation in SC effectiveness. This construct is made up of variables relating to the end-results of SC management in an organization. For beverage firms to maximise SC effectiveness therefore, they need to focus on implementing the best SC strategy that will yield expected SC outcomes.