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Antecedents and enablers of supply chain value creation: An analysis of trust and competences

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  • Yusuf Kiwala
  • Johan Olivier
  • Ismail Kintu

Abstract

The study investigated how small and medium enterprises (SMEs) create value in local supply chains. Specifically, the study focused on two initiators of value creation: entrepreneurial competences and supply chain trust. The authors analyse a cross-sectional survey of 294 SMEs in Uganda operating in the construction, furniture and fitting, food processing and agricultural sectors to test a number of hypotheses, using factor analysis and structural equation modelling. Results show that building value-driven supply chains requires SME owner-managers to build an optimal level of trust. Although trust is identified as a key factor in facilitating trade within local communities, different entrepreneurs’ perspectives alter how SME-owner managers assess trusted partners, determining different strategies and behaviours in building trust in customer, as opposed to suppliers’ relationships. In addition, findings show how operational cost is not a key value driver, indicating why SME-owners managers should instead focus on building trust.

Suggested Citation

  • Yusuf Kiwala & Johan Olivier & Ismail Kintu, 2023. "Antecedents and enablers of supply chain value creation: An analysis of trust and competences," Development Southern Africa, Taylor & Francis Journals, vol. 40(3), pages 580-598, May.
    • Handle: RePEc:taf:deveza:v:40:y:2023:i:3:p:580-598
    DOI: 10.1080/0376835X.2022.2029356
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    Cited by:

    1. Eleni-Efthymia Psychogiou & Giannis T. Tsoulfas, 2024. "Critical Factors Affecting Trust in the Wine Supply Chain in Greece: A Grey DEMATEL Approach," Logistics, MDPI, vol. 8(1), pages 1-22, February.

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