Exploring the influence of supply chain collaboration on supply chain visibility, stakeholder trust, environmental and financial performances: a partial least square approach

Abstract

PurposeThe need to stay competitive amidst ever-changing business environment has shifted competitive strategies from firms to supply chains. Managers are now basing competitive strategies on supply chains acknowledging that supply chains present competitive advantages among other resources. The purpose of the study is to explore the predictive relevance of supply chain collaboration and the extent to which it influences supply chain visibility, stakeholder trust, environmental and financial performances. This study focused on manufacturing firms due to their supplier relationships, consumption of resources, energy and emissions of greenhouse gasses.Design/methodology/approachThe study adopted a survey research design, a quantitative approach and partial least square structural equation modelling technique in making data analysis and interpretations due to its suitability for predictive research models as is the case in this study.FindingsThe study hypothesized that supply chain collaboration positively and significantly interacts with supply chain visibility, stakeholder trust, environmental and financial performances. The study results confirmed supply chain collaboration as a significant, positive and a robust influence on supply chain visibility, stakeholder trust, environmental and financial performances thereby projecting win-win scenarios for firms that engage in collaborative supply chain practices.Originality/valueThe study is among the few to indicate findings in relation to the scope of supply chain collaboration's potency in influencing performance from the perspective of manufacturing firms operational in an emerging economy. Thus, this study contributes to understanding the wider scope of supply chain collaboration, its interactions with other firm variables and how it informs decisions of managers, scholars and supply chain partners.