SCT Utilization and Foreign Trade Firm Performance in Ghana: The Moderating Effect of Entrepreneurial Orientation and Customs Response

Abstract

With the advent of globalization, Ghanaian SCs have experienced an upsurge in the number of importers, exporters, suppliers, wholesalers, distributors, and customers. According to literature reviewed, SCs become vulnerable to various disruptions as they go global and becomes complex. These disruptions, in effect, present significant challenges to the various stakeholders in the foreign trade industry, therefore the adoption and use of SCT`s to help mitigate the effects of these disruptions and complex SCs. This study therefore examines the use of SCT and its impact on organisational performance, with entrepreneurial orientation and customs response as moderators. To achieve this objective, a systematic sampling technique was used to collect data from 312 managers of customs brokers operating within the Tema and KIA aviance port. Quantitative research method was adopted for the study. The conceptual framework was tested using partial least squares method, which is a variance-based structural equation modeling approach. The study was able to reveal that, all other things being equal, when there is a unit increase in SC utilisation, operational performance of firms in the Ghanaian foreign trade will increase by 14.7%. Also, one of many reasons for foreign trade firms to utilize SCT is that customers are becoming more competitive. Additionally, the study found significant and positive direct relationship between SC management practices including technological innovation and the performance of an organization. SCT has the tendency to improve performance of firms; however, the relationship is strengthened with innovation culture as a moderator. Based on the findings above, organisations in the foreign trade industry are encouraged to use Electronic Data Exchange in their work. This is because of its ability to help in cost reduction and transactions volume objective among SC partners. Likewise, as a result of the positive moderating relationship between entrepreneurial proactiveness and SC itilization and their impact on operational performance, this study recommends that customs brokers and other stakeholders in the foreign trade industry should constantly introduce new products/services, administrative techniques and operational technologies. The introduction of new products & services system makes them very competitive in relation to their peers and leads to huge market share.