Abstract

The objective of this research is to examine the antecedents of supply chain value in the food trade business in the Gauteng region of South Africa. This study considers three of these drivers, namely buyer-supplier trust, commitment and supply chain relationship durability. A numerical approach was implemented in which a survey questionnaire was used to collect data from 429 managers and staff members from food retailing firms in the Gauteng province. The study used a non-probability convenience sampling technique to select respondents. Information were analysed through two software packages, namely the Statistical Package for the Social Sciences (SPSS version 24.0) and the Analysis of Moment Structures (AMOS version 24.0). The main goal of this research is to see if the data fits the model. A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling helped in testing the hypothesised relationships among variables. The results of the investigation made known that buyer and supplier trust, commitment and supply chain relationship endurance absolutely and meaningfully impact supply chain performance. This investigation concludes that to achieve greater supply chain performance, food retailers should expedite the levels of trust, commitment and length of relationships with their providers. The outcomes of this study offer valuable understandings on how companies in the food retail industry could profit from trust, commitment and relationship longevity along with on how to develop supply chain performance. The results of this study add to the current body of knowledge by generating new information on buyer-supplier relationships. Therefore, the study is useful to buyers and suppliers in the food retail industry who wish to enhance supply chain performance and develop better relationships.

Highlights

  • R egarding competitive improvement and collaborative standing in supply chain logistics associations, Klein, Rai and Straub (2007), as well as Bischescu and Fry (2009) investigated supply chain performance linked to management

  • This study focused only on the food retail industry to explain the antecedents of supply chain performance; future academics could outspread the search to additional industries, as well as to other provinces or outside South Africa, because this study was only focused on the Gauteng province

  • This study investigated the antecedents of supply chain performance in the food trade commerce in the Gauteng region

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Summary

Introduction

R egarding competitive improvement and collaborative standing in supply chain logistics associations, Klein, Rai and Straub (2007), as well as Bischescu and Fry (2009) investigated supply chain performance linked to management. According to Gavrea, Ilies and Stegerean (2011), achieving supply chain performance is the aim of every organisation since it is only because of effectiveness that organisations are capable to develop and progress. Arguably among all one of greatest constructs in the field of management study and, possibly, the most important indicator of organisational performance. For a firm to achieve increased supply chain performance, it is essential for partners to enhance the association by building trust and commitment. Ghosh and Fedorowicz (2008) scrutinised the effect of trust in the midst of collaborative, planning, estimating and renewal processes, and found that trust is vital in the execution and improvement of supply chain performance.

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