Supply Chain Transparency and Firm Performance in Ghana: the Role of Institutional Quality

Abstract

ABSTRACT This study investigates supply chain transparency (SCT) and firm performance in Ghana: the role of institutional quality, focusing on agri-food processing firms. The study relied on the positivists’ research paradigm and employed the explanatory research design and the quantitative research approach. The research used a questionnaire to collect data from 320 out of the 396 sampled agri-food processing firms and analysed using Kendal`s coefficient of concordance and structural equation modelling. The results show that (1) there is a high degree of concordance of supply chain transparency practices among firms in the agri-food processing industry in Ghana, (2) SCT positively influences the performance of agri-food processing firms in Ghana, (3) Institutional quality positively influences the performance and (4) supply chain transparency of agri-food processing firms in Ghana, and (5) Institutional quality positively moderates the relationship between SCT and the performance of agri-food processing firms in Ghana. Therefore, the study recommends that the stakeholders of the agri-food processing sector continue to institute sound policies that inspire SCT and institutional quality to enhance firm performance. However, with the fifth hypothesis, such efforts will yield much more improved firm performance if policies are also implemented to improve the institutional quality. Additionally, the improvements in institutional quality on their own will positively impact SCT and firm performance per the third and fourth hypotheses. For the first hypothesis, the study recommends that managers diversify their attempts to create transparent supply chains by giving the needed attention to the other forms of transparency in addition to the highly held legal requirements.