How interfirm governance mechanisms and capabilities determine supply chain responsiveness in small businesses : evidence from an African market

Abstract

This paper examines whether supply chain capabilities (i.e., collaboration and coordination) mediate the relationships between interfirm governance mechanisms (i.e., formal control and social control) and supply chain responsiveness in the context of small businesses. Using survey data from 331 small businesses in Ghana, we find that interfirm governance mechanisms are not directly related to supply chain responsiveness. Additional results show that interfirm governance mechanisms have positive indirect relationships, via supply chain capabilities, with supply chain responsiveness. Overall, this paper offers an improved understanding of how interfirm governance mechanisms might contribute to supply chain responsiveness in small businesses.