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

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