The Effect of Supply Chain Management on Firm Performance: The Case of Selected Commercial Banks in Ghana

Abstract

This study examined the effect of supply chain practices in firm performance. The population of this study was supply chain professionals in selected commercial banks in Ghana. A quantitative research technique was employed. The simple random sampling method was used to select 178 respondents from four (4) commercial banks. A structured questionnaire was used to collect data. Pearson’s correlation test and linear regression analysis were used to analyse data. Findings indicated that supply chain practices significantly influence firm performance, with supply chain practices accounting for 67.7% of the total variation in firm performance. Moreover, supply chain practices significantly influence each dimension of firm performance. Thus, it accounts for 89% of the total variation on market performance, while it accounts for 30.1% and 9.2% of the total variation on operational performance and financial performance respectively. It is therefore concluded that firm performance would improve when supply chain practices in the banks are enhanced. Generally, supply chain practices positively influence firm performance among the banks. This means that improved practices of supply chain would enhance firm performance among the banks.