EXAMINING THE EFFECTS OF SUPPLIER ORIENTATION ON BUSINESS PERFORMANCE-THE MODERATING ROLE OF TRUST

ABSTRACT

The objective of this research mainly is to investigate the relationship between Supplier Orientation and Business Performance (BP) in the mobile telephony industry in Ghana and also to examine the moderating role of trust on the relationship. The study identified three key characteristics of supplier-oriented firm namely, buyer-seller relationship, commitment to relationship and communication. It also identified other measurements of trust such as credibility and benevolence. Other dimensions like quality service, market share, customer satisfaction and employee satisfaction were used to measure business performance to access the assertion that supplier orientation has a positive relationship with business performance as well as a sustained relationship. A sample of three hundred and five (305) mobile phone dealers were selected for this study. The data analysis technique chosen for this study was Structural Equation Modelling (SEM) with Amos. After descriptive statistics was presented, confirmatory factor analysis (CFA), and a Structural model results were obtained. A moderation analysis was conducted to test the hypothesis of the study. Two theories: RBV and SET were used in clarifying how SO and its dominant variables of trust impacts on BP.

The study revealed that there is a positive relationship between the dimensions of SO and business performance, with buyer-seller relationship emerging as having the strongest effect. Trust, a strong component of relationship builder was found to moderate the relationship between SO and BP.

Even though the marketing mix, which comprise product, price, place, promotion, are in place, in order to outwit competitors or remain competitive, it is crucial that firms invest in the improvement of trust with their suppliers and channel partners whilst intensive training programmes need to be embarked on to sharpen the skills of staff.