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Performance perceptions among food supply chain members: A triadic assessment of the influence of supply chain relationship quality on supply chain performance

Walter Odongo (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium AND Department of Rural Development and Agribusiness, Faculty of Agriculture and Environment, Gulu University, Gulu, Uganda)
Manoj Dora (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium AND College of Business, Arts and Social Sciences, Brunel Business School, Brunel University London, Uxbridge, UK)
Adrienn Molnár (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium AND Hungarian Academy of Sciences, Institute of Economics, Research Centre for Economics and Regional Studies, Budapest, Hungary)
Duncan Ongeng (Department of Rural Development and Agribusiness, Faculty of Agriculture and Environment, Gulu University, Gulu, Uganda)
Xavier Gellynck (Department of Agricultural Economics, Ghent University, Ghent, Belgium)

British Food Journal

ISSN: 0007-070X

Article publication date: 4 July 2016

3341

Abstract

Purpose

A good supply chain relationship quality (RQ) is a crucial precursor for any stable exchange relationship which ensures relationship continuity. Although empirical research suggests that strengthening RQ improves supply chain performance (SCP), most studies have focused on dyadic business relationships. To fully understand the relational behaviour of a firm embedded in a supply chain, we need to look beyond the dyad into triads. The purpose of this paper is to investigate how SCP is influenced by RQ in a triadic agribusiness supply chain.

Design/methodology/approach

Evidence is drawn from a quantitative survey of 150 agribusiness firms in the maize supply chain in Uganda. Data were collected in triadic context from 50 direct supply chains each composing of a supplier, focal firm and customer. Multi-group structural equations modelling (SEM) was used to assess the differences in perception on the influence of RQ on SCP amongst the supply chain members.

Findings

Results provides empirical support for the positive influence of RQ on SCP. SEM reveals differences in perception between the upstream and downstream and amongst the supply chains members. While focal firms considered conflict, coercive power, commitment and trust to be important; suppliers considered trust, dependency and non-coercive power; and customers considered trust, dependency and coercive power to be important RQ factors affecting SCP.

Practical implications

For agribusiness managers to enhance business performance there is need to cultivate strong and mutual relationship with supply chain members. It is also important to know how to handle conflicts and use of power so as to realise the benefits of supply chain relationships.

Originality/value

The paper is novel in that it assesses SCP in a triadic context in an agribusiness sector from a developing country context. The authors used novel approaches including analysis of a triad, and multiple groups SEM to assess perceptions of each supply chain member’s.

Keywords

Acknowledgements

Walter Odongo is supported by a PhD fellowship from the Netherlands Organisation for International Cooperation in Higher Education (NICHE-UGA 083). The authors acknowledge the financial support of the Hungarian Scientific Research Fund (OTKA, PD 116226) “supply chain and network performance and relationships in the agribusiness sector”.

Citation

Odongo, W., Dora, M., Molnár, A., Ongeng, D. and Gellynck, X. (2016), "Performance perceptions among food supply chain members: A triadic assessment of the influence of supply chain relationship quality on supply chain performance", British Food Journal, Vol. 118 No. 7, pp. 1783-1799. https://doi.org/10.1108/BFJ-10-2015-0357

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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