Impact of Supply Chain Collaboration on the Tanzanian Agricultural Supply Chain Performance: Roles of Partners’ Commitment and Transaction Cost Management

Purpose: This study aims to explore the key antecedents of supply chain collaboration (SCC) and its influence on supply chain performance in the Tanzanian agriculture sector. The research also delves into the mediating impact of partners’ commitment, and the moderating influence of transaction cost management and the COVID-19 pandemic in explaining the influence of SCC on supply chain performance. Methodology: This study adopted a quantitative approach based on stakeholder survey and structural equation modelling technique for data analysis. A theoretical model and associated hypotheses were established, drawing upon the structured review of the extant literature, transactional cost economics, resource-based, social exchange and resource dependency theories. The model was empirically validated using Structural Equation Modelling on survey data from 629 stakeholders of agricultural supply chains (ASC) in Tanzania. Findings: Results revealed that incentive alignment, goal congruence, joint knowledge creation, and decision synchronisation are the key precursors of SCC in Tanzanian ASC. It was also found that SCC significantly and positively impacts supply chain performance through partners’ commitment in the supply chain. The moderation analysis unveiled that transactional cost management has significantly enhanced, while the COVID-19 pandemic has significantly undermined, the influence of SCC on supply chain performance in the Tanzanian ASC. Theoretical contributions: This study is among the few in integrating the key elements of the social exchange, resource-based view, transaction cost economics, and resource dependency theories in explaining the nexus between the multidimensional construct of SCC and supply chain performance and the influence of partners’ commitment, transaction cost management and the COVID-19 pandemic on this relationship. By complementing these theories, this study corroborates that superior supply chain performance is achieved when the transaction cost is minimised through sharing of strategic resources and capabilities, and strong social exchange mechanisms. It also identifies that firms in Tanzanian ASC depend greatly on each other to achieve the resources and capabilities indispensable to securing better supply chain performance amid the COVID-19 pandemic. Practical contributions: The results inform managers in the agricultural sector that the full benefits of SCC can be reaped when firms share accurate, complete, and relevant information; exchange complementary resources, especially agricultural equipment, storage and transport facilities; and jointly set goals on issues such as transport and storage efficiency, production and sales efficiency. In regards to collaborative communication, this study informs ASC managers that open, frequently adjusted and standardised two-way, multilevel correspondence for improved performance at the firm and supply chain level. The study suggest that firms need strong commitment with partners in order to realise the benefits of SCC in the Tanzanian agricultural sector. While transaction cost has been a major challenge for managers in today’s complex supply chains, the study opines that investment in transaction cost management can help ASC managers gain competitive benefits through improved collaboration and supply chain performance in the sector. Finally, this study suggests that the COVID-19 pandemic has negatively influenced the SCC in the Tanzanian ASC, affected the business’ performance and productivity and risking the supply of food. Therefore, collaborative measures should be undertaken to recover from the pandemic and develop more resilient supply chains.