Supply chain performance and satisfaction: investigating the perceptions of relationship quality in the Ugandan maize supply chain

Abstract

This PhD research assessed the perception of supply chain relationship quality and how it influences supply chain performance and satisfaction. The study was conducted in a triadic agribusiness (maize) supply chain in Uganda. Maize is an important economic crop due to the fact that Uganda has a competitive advantage in the production segment of the maize supply chain. These strategic advantages means that improvements in maize marketing systems have the potential to increase household income and hence contribute to poverty reduction for the predominantly smallholder maize farmers. To succeed and remain competitive, maize supply chain members needs to improve on their collaborative behaviours through establishing and maintaining long-term relationships. Using a triad as a unit of theory and analysis, primary data was collected from 150 maize supply chain members i.e. supplier, focal firms, customers. We find that good relationship quality was perceived to positively influence performance. Improvements in supply chain performance was positively associated with economic satisfaction, but not with social satisfaction. Further, we found that relationship duration and firm size did not influence the perceptions performance and satisfaction. On power relations, use of coercive power was perceived to negatively influence performance, while the use of non-coercive power was perceived to positively influence performance. In each of the examined relationships, supply chain members differed in their perceptions of relationship quality. The observed differences in perceptions revealed the different mechanisms through which the supply chain manages its downstream and upstream segments. While the formal downstream was managed based on contracts and trust, the informal upstream was managed based on power-dependency and trust relationships. Basing on transaction cost economics, the balance theory and the structural-hole concept, this study illustrates how a supply chain is capable of managing its formal and informal segments to ensure success of the entire supply chain. We conclude that engaging in good supply chain relationships has potentials to improve the performance of individual supply chain members, as well as the performance of the entire supply chain. However, for it to succeed, these relationships have to be tailor-made to fit the respective supply chain partners’ perspectives, interests and characteristics.