Supply Chain Quality Management Practices and Competitive Advantage of Food Processing Firms in Ghana: the Moderating Role of Innovation

Abstract

ABSTRACT Over the years, firms in the food processing sector have heavily relied on internal quality management approaches as a measure of quality performance, but these approaches were limited to the boundaries of the firms. However, competition among businesses has incrementally shifted from individual organisations to entire supply chains. Therefore, the adoption of supply chain quality management which takes a holistic approach to quality management at the supply chain level of firms. Dwelling on the resource-based theory extended resource-based theory, and resource-advantage theory, this study examined the relationship between supply chain quality management practices and the competitive advantage of food processing firms in Ghana, and how innovation influenced the relationship. The study employed the explanatory research design and the quantitative research approach. The census sampling technique was used to determine the sample size of 206 food processing firms within the Accra Metropolis. Self-administered structured questionnaires were used for data collection and the response rate was 166, constituting 80.5% of the sample size. The SPSS v26 and SmartPLS 3 software were used for data processing to generate statistical test results, and the partial least square structural equation modelling was the data analytical technique employed. Results of the study indicated that all four practices– customer focus, supplier quality, supplier selection, and supplier involvement– had a significantly positive impact on competitive advantage of the food processing firms. However, innovation signified no effect on the relationship. It is recommended that the scope of future research will be broadened to gain a deeper understanding of the phenomenon studied. The firms should also explore avenues for innovation.