Road Infrastructure, Supply Chain Costs Reduction, and Road Safety in Economic Geography Perspective

Abstract

Purpose: While it is expected that road transport infrastructure may enhance supply chain cost reduction, the mechanisms and conditions under which road transport infrastructure may enhance supply chain cost reduction are less understood. Theoretical framework: Drawing insights from the economic geography perspective, and survey data from 359 senior managers of manufacturing firms in Ghana, we found support for the argument that road transport infrastructure is important in the quest to improve supply chain cost reduction. Methods: The hypothesized model was tested with survey data from beverage manufacturing firms in Ghana. The survey method is usually appropriate for strategic management studies. Results and Conclusion: Our findings also suggest that road safety does not just support supply chain cost reduction but serves as a transformative mechanism to reap superior supply chain cost reduction in a resource-constrained environment. Our findings make a contemporary contribution to the economic geography theory as well as important managerial guidance for managers in the supply chain management space in resource-constrained regions like SSA. Research implications: The outcome of this study offers an important extension to the frontiers of innovative literature in supply chain management. Originality/value: It also provides practical insight to practitioners in the manufacturing setting by emphasizing the need to pay crucial attention to road safety as well as invest in road infrastructure development in the quest to reduce supply chain costs.