The drivers of supply chain performance in the food retail industry in Gauteng province

Abstract

The food retail industry is an important contributor to the economy. Buyers and suppliers in this industry work in collaboration with each other to achieve superior supply chain performance. To achieve this, they have to find ways and methods to improve it. The purpose of this study was to investigate the drivers of supply chain performance in the food retail industry in the Gauteng province. This study considers three of these drivers, namely buyer-supplier trust, buyer-supplier commitment and supply chain relationship longevity. A quantitative approach was adopted 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. Data were analysed with the aid of 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). A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling was used to test the hypothesised relationships between constructs. The results of the research revealed that buyer-supplier trust, buyer-supplier commitment and supply chain relationship longevity positively and significantly influence supply chain performance. Buyer-supplier trust exerted a positive and significant influence on both buyersupplier commitment and relationship longevity. Also, the results showed that buyer-supplier commitment has a positive and significant influence on relationship longevity. The study concludes that to achieve greater supply chain performance, food retailers should expedite the levels of trust, commitment and length of relationships with their suppliers. The results of this study provide useful insights on how businesses in the food retail industry could benefit from trust, commitment and relationship longevity as well as on how to improve supply chain performance. The results of this study contribute to the existing 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.