Supply Chain Integration, Trust and Operational Performance of Commercial Poultry Farms in Dormaa Municipality, Ghana

Abstract

The study examined the effect of supply chain integration on operational performance of commercial poultry farms in Ghana. Trust and firm size were statistically controlled for as intervening variables. Four hundred and thirteen commercial poultry farms in Dormaa Municipality in the Bono Region were targeted. Explanatory researched design was adopted. Although 262 farms were initially approached, 248 questionnaires were however retrieved. Proportional stratified sampling technique was used for the selection of the respondents. Adoption of the quantitative research approach made it easy for the application of statistical techniques for analysing the primary data. SMART pls application was used for the configuration of the structural models and the multigroup analysis given the nature of the specific research objectives. The unit of analysis include commercial poultry farms. Supply chain integration accounted for 67.8% significant change operational performance. Financial flow integration and internal integration were significant positive predictors of operational performance. Logistics integration and supplier integration negatively related significantly with operational performance. Trust mediated the predictive relationship between supply chain integration and operational performance. Commercial poultry farms should continue to rely on supply chain integration strategies such as financial flow integration and internal integration to improve their operational performance. Compared to small-scale and medium-scale commercial farms, supply chain integration is more efficient at improving the operational performance of large-scale commercial poultry farms, hence large-scale commercial farms are encouraged to integrate more with their supply chain actors than small-scale and medium-scale commercial enterprises.