Drivers and Outcomes of Supplier Development among Manufacturing Firms in Ghana

Abstract

The manufacturing sector has been identified as one of the sectors in Ghana that provides employment opportunities for thousands of people, and also makes significant contribution to the country’s gross domestic product. Their operations and performance however, largely depend on suppliers who supply them with required inputs. Guided by the positivism philosophy, and underpinned by the network theory and resource-based theory, this study investigated the drivers of supplier development and its outcomes among manufacturing firms in Ghana, and how supplier development mediates the relationship. The study employed the quantitative approach and explanatory research design, and the stratified sampling technique was used to determine a sample size of 382 procurement managers of manufacturing firms in Ghana. Self-administered questionnaires were used for data collection and the response rate was 320, constituting 83.7% of the sample size. The Statistical Package for the Social Sciences version 26, and the SmartPLS 3 software were used for data processing, and the data analytical technique employed was the partial least square-structural equation modelling (PLS-SEM). The study found Top Management Support and Trust largely influence Buyer-Supplier Relationship and Sustainable Performance. Also, Supplier Development significantly affected Buyer-Supplier Relationship and Sustainable Performance, while Supplier Development significantly mediated the relationship between Supplier Development drivers and outcomes. The study concluded that drivers of supplier development, and supplier development are significant predictors of supplier development outcome, hence it recommended that managers and policy makers will make them a priority.