Firm performance implications of supply chain integration, agility and innovation in agri-businesses: evidence from an emergent economy

Abstract

PurposeThis study empirically examines the effect of supply chain integration (SCI) on financial performance (FP) and controls for the mediating effects of supply chain agility (SCA), supply chain (SC) innovation and operational performance (OP).Design/methodology/approachThrough a causal research design, structured questionnaires were used for primary data collection from 217 commercial poultry farms (CPFs) operating in the Bono Region of Ghana. Structural equation modeling was reflectively configured to test the formulated hypotheses.FindingsSCI causes a statistically significant moderate positive variance in OP in terms of cost-effectiveness, order fulfillment rate, operating cycle, inventory turns, business process innovation. SCI is an insignificant weak positive predictor of FP (growth in revenue, profit, return on investment, sales growth) of CPFs operating in Ghana. Furthermore, OP significantly and positively mediates the predictive relationship between SCI and FP. Again, SC innovation significantly mediates the predictive relationship between SCI and OP. However, SCA fails to significantly mediate the predictive relationship between SCI and OP.Research limitations/implicationsFocal firms' characteristics were ignored, although they may determine how SCI affects OP and FP in the presence of SCA and SC innovation.Originality/valueEmpirically, SCI has no direct impact on FP of CPFs but does so indirectly through the mediating role of OP.