Supplier Development and Operational Performance of food and Beverage firms in Ghana: The Role of Buyer-Supplier Commitment

Abstract

Today, a lot of Ghanaian food and beverage firms have recognised how important supplier development is to creating and sustaining their competitive advantage. This study aimed at examining the effect of supplier development on operational performance of food and beverage firms in Ghana through the mediating role of buyer-supplier commitment. Positivist philosophy and correlational research design was used for the study. The target population for the study was 152 food and beverage firms located in Greater Accra, Ghana, who have registered with Food and Beverage Association Ghana (FABAG, 2022). Also, the study employed a census sampling technique to collect data from 152 respondents (Procurement officers) using structured questionnaires. PLS-SEM technique was used to analyse the data. The findings from the study revealed that supplier financial support, supplier training and early supplier involvement in new product development as a construct of supplier development all had a significant positive effect on operational performance of food and beverage firms in Ghana. Further, buyer-supplier commitment significantly and positively mediated the relationships between supplier development and operational performance of Ghanaian food and beverage firms. The study therefore recommended that in order for management of the food and beverage firms in Ghana to improve their operational performance, they should develop their suppliers by providing them financial support, training and involving them at the early stage of production as well as establishing buyer-supplier commitment with suppliers.