The proliferation of motor tricycle usage in precarious transportation contexts and the performance of micro and small manufacturers

Abstract

Micro and small businesses (MSBs) in developing countries increasingly use motor tricycles to navigate transportation-induced supply chain disruptions. However, there is a lack of empirical understanding of whether and when these resources benefit such firms. This study draws on the contingent resource-based theory to examine how motor tricycle deployment relates to the performance of MSBs under varying conditions of supply chain dynamism in a developing country. The study tests its hypotheses on primary data from 267 micro and small manufacturers in Ghana using moderated regression analysis. The results indicate that motor tricycle deployment positively relates to MSB performance in Ghana (β = 0.024, SE = 0.007, p = 0.001). The results further show that supply chain dynamism positively moderates the relationship between motor tricycle deployment and MSB performance (β = 0.008, SE = 0.004, p = 0.035). In contributing to the limited literature on the firm-level performance implications of the increasing use of motor tricycles among micro and small businesses in developing countries, this study's results underscore the importance of adopting a contingency-based approach to understand the complexities inherent in the relationship between motor tricycle deployment and firm performance in these settings.