Impact of Corporate Sustainability and Supply Chain Partnership towards Firm Performance: Empirical Evidence from Ghana’s Manufacturing Sector

Michelle Frempomaa Frempong^1, and Stephen Sarfo Adu-Yeboah²

¹School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, China

²School of Management, Hefei University of Technology, Hefei, China

Cite this paper:
Michelle Frempomaa Frempong and Stephen Sarfo Adu-Yeboah. Impact of Corporate Sustainability and Supply Chain Partnership towards Firm Performance: Empirical Evidence from Ghana’s Manufacturing Sector. Journal of Finance and Economics. 2021; 9(5):161-169. doi: 10.12691/jfe-9-5-1

Abstract

Corporate sustainability practices are acknowledged as the bedrock for the continuity of an entity and success in the era of the green revolution. This is evident from numerous interventions and policies to encourage firms to operate responsibly to mitigate the negative effect of their operational activities. However, achieving corporate sustainability goals and benchmark requires collaboration and interaction with relevant stakeholders, especially external stakeholders such as suppliers. Therefore, the purpose of the research is to look into the effects of corporate sustainability and supply chain partners on the performance of firms in the manufacturing sector of Ghana. Drawing lessons from the social capital network theory, the study examined three (3) hypotheses using data collected from firms in Ghana’s manufacturing sector. Data acquired is analyzed using PLS-SEM techniques. The outcome of the analysis indicates that corporate sustainability influences the supplier selection and partnership process significantly. Findings further indicate that supply chain partnership has a clear and compelling impact on the performance of organizations in the manufacturing landscape. However, corporate sustainability is found to have less impact on the organizational performance of firms.

Keywords:
corporate sustainability supply chain partnership firm performance PLS-SEM social capital

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