Supply chain dynamism, information sharing, inter-organisational relationships and supply chain performance in the manufacturing sector

Abstract

Orientation: Manufacturing supply chains in South Africa are susceptible to various internal and external threats that continue to suppress their performance. Information is required that can be used by firms in such environments to overcome the existing threats and improve their supply chains.

Research purpose: This study sought to examine the relationship between supply chain dynamism, information sharing and inter-organisational relationships and supply chain performance in the manufacturing sector in South Africa.

Motivation for the study: There is a gap in literature on the linkage between supply chain dynamism, information sharing and inter-organisational relationships and supply chain performance in the South African manufacturing sector.

Research design, approach and method: Empirical data were collected from a purposive sample of 340 supply management professionals recruited from 31 manufacturing firms based in Gauteng Province. Data were analysed using structural equation modelling, which involved a confirmatory factor analysis and hypotheses tests.

Main findings: The results indicate a significant positive relationship between supply chain dynamism and both information sharing and inter-organisational relationships; between information sharing and both inter-organisational relationships and supply chain performance; and between inter-organisational relationships and supply chain performance.

Practical/managerial implications: Supply management professionals in the manufacturing sector may use the results of this study as a tool in the diagnoses of supply chain performance-related problems, by checking for the proper alignment of the factors considered in the research.

Contribution/value-add: These results validate the importance of effective supply chain management practices in shaping supply chain performance in manufacturing environments. By monitoring and responding positively to the changes in key resources within manufacturing supply chains, managers can be able to improve the sharing of information and develop better relationships among trading partners, leading to superior performance of the entire supply chain.