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Investigating the Path from Supply Chain Integration to Business Performance: Evidence from a Sub-Saharan African Economy

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  • Jonathan Annan
  • Nathaniel Boso
  • Dominic Essuman

Abstract

Following the growing concerns on the inconsistent findings in previous research and drawing on the social exchange and networking theories, this study re-examined the impact of supply chain integration (SCI) on business performance (i.e. value creation and financial performance). The study argues that the impact of SCI on financial performance is through value creation and is depended upon longevity of product life cycle. Using primary data from 79 firms in Ghana, the study finds that value creation is a short-run consequence of SCI while financial performance is a long-run outcome of SCI. Additionally, results show that the financial performance outcome of SCI is experienced more from integrative efforts than from the value creation outcome. Results further indicate that firms whose products stay relatively shorter on the market are more likely to experience lower positive impact of SCI on value creation, and thus firms’ ability to become proactive, monitor, and collect market information on product performance throughout its life cycle is key for coming out with strategies that will enable them maximize product’s life span so as to experience greater benefits that come with pursuing integration with other channel members.

Suggested Citation

  • Jonathan Annan & Nathaniel Boso & Dominic Essuman, 2016. "Investigating the Path from Supply Chain Integration to Business Performance: Evidence from a Sub-Saharan African Economy," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 225-225, May.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:6:p:225
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    References listed on IDEAS

    as
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    6. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
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    Cited by:

    1. Isaac Opoku-Fofie & Devika Nadarajah & Ida Md Yasin, 2022. "Mediating effect of Supply Chain Integration on the Relationship between Continuous Improvement and Innovation and Operational Performance in the Ghana Cocoa Supply Chain," Business Management and Strategy, Macrothink Institute, vol. 13(1), pages 206-217, June.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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