Supplier Development and Sustainable Performance of Cocoa Bean Suppliers in Ghana: The Role of Operational Efficiency, Firm Ambidexterity and Buyer-Supplier Relationship Quality

Abstract

Despite the enormous supplier development initiatives given to cocoa bean suppliers in Ghana by key stakeholders in the cocoa industry, especially from the License-buying companies [LBCs], cocoa bean suppliers continue to perform abysmally regarding sustainability performance and operational efficiency. Furthermore, it is difficult for cocoa bean suppliers to change their operations to take advantage of opportunities embedded in supplier development initiatives. The study examined the effect of supplier development on the sustainable performance of cocoa bean suppliers in the Western North region of Ghana. It analysed the intervening roles of operational efficiency, firm ambidexterity, buyer-supplier relationship quality and firm characteristics. It employed an explanatory research design and quantitative approach, collecting primary data through a structured questionnaire in a cross-sectional survey. Multi-stage sampling was employed to select the participants. Caretakers and owners served as proxies for the cocoa supply farms. Out of 450 cocoa bean suppliers, 424 completed the questionnaires leading to 94.22% response rate. SMART PLS software was utilised to analyze the data via the two-stage embedded approach of model configuration. Supplier development and operational efficiency account for a moderate variance in sustainable performance. Buyer-supplier relationship quality and firm ambidexterity amplify supplier development's influence on operational efficiency. Ghana Cocoa Authority should continue and intensify its policy on non-price incentives for cocoa farmers. Cocoa bean suppliers should increase their technical efficiency to transfer the advantages in supplier development into sustained performance.