The impact of supply chain governance structures on the inter-firm relationship performance in agribusiness

Abstract

In this paper, we investigate the relationship between the types of supply chain governance structure and the perceived relationship performance of Ghanaian fresh fruit and vegetable exporters concerning their business with European importers. Using the principal component and regression analyses based on data obtained from 101 interviews with exporters in Ghana, we show that relationship performance is a multi dimensional construct with economic and behavioral relationships as the two main dimensions. The study reveals that whereas the economic relationship performance is influenced by the type of governance structure used, the behavioral relationship performance is not. Thus, the economic dimension of the relationship improves as the firms adopt a more coordinated type of governance structure. We conclude that both the exporters and the importers can improve their economic performance and enhance efficiency in the supply chain if they adopt a more coordinated supply chain governance structure type if there are appropriate mechanisms for equitable distribution of benefits.