Modelling The Influence Of The Drivers Of Supply Chain Performance In The Food Retail Industry In South Africa

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Chriss Narick Mangoukou Ngouapegne
Elizabeth Chinomona

Keywords

Buyer-Supplier Trust, Buyer-Supplier Commitment, Supply Chain Relationship Longevity, Supply Chain Performance, Commitment-Trust Theory

Abstract

The objective of this research is to examine the antecedents of supply chain value in the food trade business in the Gauteng region of South Africa. This study considers three of these drivers, namely buyer-supplier trust, commitment and supply chain relationship durability. A numerical approach was implemented in which a survey questionnaire was used to collect data from 429 managers and staff members from food retailing firms in the Gauteng province. The study used a non-probability convenience sampling technique to select respondents. Information were analysed through two software packages, namely the Statistical Package for the Social Sciences (SPSS version 24.0) and the Analysis of Moment Structures (AMOS version 24.0). The main goal of this research is to see if the data fits the model. A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling helped in testing the hypothesised relationships among variables. The results of the investigation made known that buyer and supplier trust, commitment and supply chain relationship endurance absolutely and meaningfully impact supply chain performance. This investigation concludes that to achieve greater supply chain performance, food retailers should expedite the levels of trust, commitment and length of relationships with their providers. The outcomes of this study offer valuable understandings on how companies in the food retail industry could profit from trust, commitment and relationship longevity along with on how to develop supply chain performance. The results of this study add to the current body of knowledge by generating new information on buyer-supplier relationships. Therefore, the study is useful to buyers and suppliers in the food retail industry who wish to enhance supply chain performance and develop better relationships.

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