Top Management Commitment, Supplier Quality Practices and Firm Performance: Evidence from Agro-Food Processing SMEs in Tanzania

Abstract

This study examines the role of top management commitment (TMC) as an antecedent of supplier quality management (SQM) and investigates the relationship between SQM and firm performance among agro-food processing SMEs (AFP-SMEs) in the Sub-Saharan African context. Data were collected through a structured questionnaire from 256 agro-food processing SMEs in Tanzania. A quantitative approach using structural equation modelling was used for data analysis. Results indicated a significant positive relationship between TMC, SQM, and firm performance. Additionally, results showed that the relationship between TMC and firm performance is partially mediated by SQM practices. A further post-hoc analysis of the higher-order measurement model showed that supplier selection contributed most strongly to SQM practices, followed by supplier relationship management, supplier inspection, and supplier development. The study contributes to the SQM literature and firm performance by treating SQM practices as an important organisational capability that can enhance firm performance. It also identifies TMC as an important antecedent of SQM capability and provides evidence from Sub-Saharan Africa, where empirical work on SQM remains scarce.