Role of power in supply chain performance: Evidence from agribusiness SMEs in Uganda

Abstract

Purpose: This paper examined the role of power on supply chain performance in the context of small and medium sized agribusiness enterprises (SMEs). Contrary to most of previous studies, which collect and analyze data from one side of a relationship dyad using a focal firm approach, a matched triad approach was employed in data collection and analysis in this study. Methodology: Empirical data was collected from 150 agribusiness supply chain members from the maize supply chain in Uganda. Analysis was done using multi-group analysis and structural equations modelling. Findings: Results highlights the differences in the perception of power use and how it influences supply chain performance. The differences in perception suggest the existence of power asymmetry amongst supply chain members. This work contributes to the ongoing debate concerning the use of triad as a unit of analysis as opposed to a firm or a dyad. Limitations: This study only focused on one commodity chain in one country, which can limit the broad application of the findings. Managerial implications: A practical implication of the finding is that managers of agribusiness supply chains should be aware of their power positions and appropriately influence the supply chain based on their relative power positions. Originality: The novelty of this work lies in fact that we assess perception of power amongst supply chain members in a triadic context, a perspective that has not been adequately tested in agribusiness supply chain management studies before.