Examining the relationship between chain governance structures and chain performance

Abstract

Purpose The purpose of this paper is to analyze the influence of chain governance on chain performance among the chain members. Design/methodology/approach The survey was conducted in a triadic context with 345 chain members (115 dairy farmers, 115 dairy cooperative managers, and 115 processors) of the dairy sector in Uganda. Data collection was performed through simple random sampling by survey questionnaires with the chain executives. SEM was used for data analysis. Findings The results revealed several chain governance structures (spot market, relational, contractual and mini integration) confirmed the hypothesized correlations on chain performance at different chain levels. The authors found a positive influence of relational governance on chain performance for all the chain members; however, the effect is stronger at the first supplier chain level. Originality/value This triadic chain approach makes an original contribution to the chain governance structures and chain performance literature in the supply chain context. Studies analyzing all aspects of chain governance structure and chain performance at three chain levels are limited.

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