Road Transport Infrastructure and Supply Chain Performance in the Beverage Manufacturing Setting: Does Road Safety Compliance Matter?

Abstract

Purpose: Despite the growth of literature on SC performance drivers, there is still limited attention on how road transport infrastructure may drive SC performance. This study is conducted to examine the mediating role of road safety compliance in the relationship between road transport infrastructure and SC performance among manufacturing firms in emerging economies. Design/methodology/approach: Drawing from the system and knowledge-based view perspectives, a framework was proposed and validated using survey data from the beverage manufacturing firms in Ghana. Data were gathered from 359 managers of firms in Ghana. The model was validated by PLS-SEM. Findings: The results showed a direct significant relationship between road transport infrastructure, road safety compliance, and SCP. The findings further revealed that the influence of road transport infrastructure on SCP is not just a bivariate relationship but also mediated through road safety compliance. The outcome of this study provides evidence that though road transport infrastructure remains crucial to driving SCP, superior SCP could be achieved in the presence of road safety compliance. Originality/value: The outcome of this study offers an important extension to the frontiers of literature on supply chain performance. It also provides practical insight to practitioners in the manufacturing setting by emphasizing the need to pay crucial attention to road safety compliance as well as invest in road infrastructure development in the quest to achieve efficient SC performance of firms.