Supply chain management practices and agribusiness firms’ performance: Mediating role of supply chain integration

Abstract

Background: Globally, there have been a dramatic upward surge in the total number of agribusiness firms serving as a chain in strengthening of their activities. Interestingly, the impact of supply chain integration (SCI) on agribusiness firms is deficient in a developing country like Ghana. Aim: The study looks into the nexus between supply chain management practices (SCMP) and agribusiness firms’ performance. The study further examines the mediating role of SCI on the relationship between SCMP and agribusiness firms’ performance in Ghana. Methods: A research framework was proposed and subjected to tentative assessment using data amassed from selected agribusiness firms from the Northern Region of Ghana. Statistical Package for Social Sciences 22.0 version and LISREL 8.0 were used to test hypotheses on the nexus between supply chain management practices and agribusiness firms’ performance, as well as the role of SCI. Results: The findings revealed that SCMP relates positively to both financial and internal process performance. Also, it was discovered that SCI completely or partially mediates the effects of SCMP on the two variables of the firms performance, and this difference could be attributed to the different cultural settings. Conclusion: In support of management theories, this study justifies that using SCI as an organisational core strategic tool will help boost agribusiness performances to remain and sustain competitive edge over rivals. Therefore, agribusiness managers, policymakers, governments and other interested bodies are encouraged to broaden the scope of advocacy in streamlining SCI culture to ensure effectiveness and speedy attainments of organisational objectives.