Professional Documents
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To cite this article: Dennis Kwatia Amoako, Mohamad Norhayati Zakuan, Eugene Okyere-
Kwakye & Francis Kamewor Tetteh (2021): Effect of Training and Reward on Social Sustainability
in Ghana’s Cocoa Supply Chain: The Role of Green Buyer-Supplier Relationship. , Journal of
International Food & Agribusiness Marketing, DOI: 10.1080/08974438.2021.1981511
ABSTRACT KEYWORDS
This study was conducted to examine Ghana’s cocoa supply Ghana cocoa; green
chain sustainability, with a focus on the effect of training and buyersupplier relationship;
reward on social sustainability in Ghana’s cocoa, and also the social sustainability; supply
chain; training; reward
unique role of green buyer-supplier relationship (governance
and trust). Questionnaires were administered to three hundred
and twenty-eight (328) cocoa farmers from the Western region
of Ghana which generated the primary data for the research
and the Partial Least Square (PLS-SEM) was used to aid the
analysis of the data gathered. The result showed that both
Training and Reward have directly affected social sustainability
significantly and the same have indirectly affected social sus-
tainability through the green buyer-supplier relationships
(governance and trust). In addition, it was observed that the
green buyer-supplier relationship positively related to social
sustainability. The outcome of this study provides contempor-
ary knowledge on how a combination of training and reward
together with green buyer-supplier relationship (governance
and trust) could enhance social sustainability in the cocoa
industry. This study is among the very few scholarly works
that have attempted to explore the drivers of social sustain-
ability in the agri-food supply chain setting, especially, the
context of developing economies. This study adds to the
extant literature by providing a contemporary view of top
management support and social sustainability in the context
of the agri-food supply chain.
Introduction
Supply chain management (SCM) has been one of the most productive
study fields for a while now (Laengle et al., 2017) thus, one interesting field
of research in the global world has been Supply Chain Sustainability in
Literature review
Supply chain sustainability in the Cocoa Industry
As emphasized above, cocoa plays a very important role in Ghana’s
economy and infrastructural development. It has been established that
the contribution of Ghana’s cocoa to the national and global economies
and the health benefits it provides its consumers have greatly increased
its consumption. The aforementioned benefits make research into the
sustainability of cocoa production very critical, recognizing that about
seventy percent (70%) of cocoa production to the world market comes
from West Africa (Beg, Ahmad, Jan, & Bashir, 2017) with Ghana being
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 5
Training
Training has been explained by (Wongthongchai & Saenchaiyathon,
2019) as obtaining the required knowledge on the job while continuing
education. Also, training has been mentioned as a strategic component
of production (Walumbwa et al., 2011), According to (Sarkis, Gonzalez-
Torre, & Adenso-Diaz, 2010), training, which is knowledge acquisition,
is the basis for utilization and development of resources in RBV theory.
Therefore knowledge is usually the product of training (Oelze,
Hoejmose, Habisch, & Millington, 2016), and in this situation, training
of farmers on farm maintenance practices and environmental policies is
a strategy in the right direction in achieving social sustainability. In the
world of competition, training is very important in achieving all sustain-
ability practices (Alshuwaikhat & Mohammed, 2017; Liu, Bai, Liu, &
Wei, 2017). Training, as frequently seen in literature, is related to a suc-
cessful business (Slavkovic & Slavkovic, 2019; Theus, 2019; Tiftik, 2020)
and can be seen as an important component of successful (social) sus-
tainability (Jer
onimo, Henriques, Lacerda, Pires, & Vieira, 2020; Yong
et al., 2020). In addition to the above, training serves as a driver for
sustainability management (Bandanaa et al., 2021; Bhardwaj, 2016;
Melane-Lavado & Alvarez-Herranz, 2020).
Reward
Reward is an important element that tells hugely people’s commitment
to work. Reward has become one of the very important tools in manag-
ing a production firm or industry (Taufek, Zulkifle, & Sharif, 2016),
more importantly when the focus of the firm is on sustainability and
production improvement just as the cocoa industry. This knowledge
should inform the cocoa industry regulators and buyers to know the
peculiar reward that will motivate and propel the farmers to commit to
cocoa production. The industry regulators must see the reward as part
of the industry’s productivity that ensures social sustainability. In the
cocoa industry, when the right reward is given to the farmer it will gen-
erate the right attitude, that is commitment to the work (Machoka,
2020; Tadele & Gella, 2012) and will immensely contribute to the indus-
try or cocoa business. Moreover, it serves as a pivot for sustainable
competitive advantage (Thneibat, 2021). A reward strategy includes
socially responsible investment (Mackey, Mackey, Christensen, & Lepore,
2020), this involves investing in the farmers by subsidizing cocoa inputs
for the cocoa farmers, giving financial support, and providing logistics
for the farmers to work, etc.
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 7
Social sustainability
Sustainability is the development that meets the needs of the present with-
out wasting or damaging the ability to serve future generations (V Mani
et al., 2015). The concept of sustainability comprises economic, environ-
mental, and social factors. The focus on sustainability in the supply chain
has been more on economic and environmental aspects with little attention
on social sustainability (Venkatesh Mani, Jabbour, & Mani, 2020).
According to Ashby et al. (2012), social sustainability in the supply chain is
the reaction given to social issues in the supply chain. Clarkson (1995) also
views social sustainability as the comparatively higher concern establish-
ments express on issues affecting participants than the society and how
important it is to dissociate participants’ issues from social issues. The fair
trade principle is also a non-economic aspect of sustainability, the concept
happens when a trading partner establishes an equal base of exchange or
ensures price fairness among buyers and suppliers in a relationship
(Strong, 1997).
Another view of social sustainability focuses on personal needs such as
education, skill, income, and employment (Spangenberg, Omann, &
Hinterberger, 2002). Similarly, Whooley (2004) described social
8 D. K. AMOAKO ET AL.
Theoretical Framework
The Resource-Based Theory (RBT) also known as the Resource-Based View
and the Social Exchange Theory (SET) were the theoretical underpinnings
for the study. According to the RBT, that which is rare, valuable, and diffi-
cult to imitate with respect to resources and capabilities can make available
important sources of sustainable competitive advantage (Barney, 1991).
According to Grant (1996) and Barney (1991), resources can also be recog-
nized as an organization’s capabilities, assets, knowledge, information, com-
petencies, and processes which an organization control to enable it
implement strategies and enhance competitiveness. Training and reward
represent the mindset and approaches of top management (Pagell, 2004)
and these two involves irreplaceable, valued, and unique resources that dif-
fer across firms (Xu, Huo, & Sun, 2014). The knowledge of the use of
these, justifies the inclusion of training and reward in the proposed model.
The view of Yadlapalli, Rahman, and Gunasekaran (2018) is that sustain-
ability in the supply chain increases an organization’s competitiveness, and
it is an important resource to consider in the model. Emphasis on this
resource can lead to an improvement in social sustainability. Considering
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 9
Research Framework
The proposed framework in this study hypothesizes that GBSR (comprising
of governance and trust) plays a significant role by liaising between the
relationship between training, reward, and social sustainability in the cocoa
industry. The entire model expresses three types of variables: the independ-
ent variables, which is training and reward, mediating variable i.e., green
buyer-supplier relationship (governance and trust), and dependent variable
such as social sustainability. The research model is shown in Figure 1.
The following session will discuss a detailed relationship amongst
the variables.
10 D. K. AMOAKO ET AL.
Training
Social
GBSR (Trust & Sustainability
Governance)
Reward
Hypothesis development
Effect of training, GBSR on social sustainability
Training refers to the practice of obtaining a specific ability to do a job bet-
ter (Saleh et al., 2018), it helps people to be more proficient and effective
in what they do. People’s modified behavior resulting from training also
helps to contribute to their environment. Management’s focus on training
issues activates the organization’s capability to be proactive on training pro-
grams. (Rampa & Agogue, 2021). When the cocoa industry incorporates
training in its strategies and is proactive in training farmers, it will inevit-
ably lead to social sustainability (Drimie, Hamann, Manderson, &
Mlondobozi, 2018), thus training can become part of social sustainability
indicators. The cocoa industry needs to have good training programs for
cocoa farmers. The studies of Jabbour, Ana Beatriz Lopes de Sousa, Diego
Vazquez-Brust, Charbel Jose Chiappetta Jabbour (2017) argue that training
can help improve social sustainability implicitly and the neglect of training
can jeopardize social sustainability.
Most times, training programs of the organization influence the sustain-
able or green buyer-supplier relationship (GBSR) (Awan & Khan, 2021).
Many scholars have recently looked into the buyer-supplier relationship
and they are of the view that the buyer-supplier relationship ranks as one
of the best resources for improving sustainable competitive advantage
(Claycomb & Frankwick, 2010; Lambe, Spekman, & Hunt, 2002; Neutzling,
Land, Seuring, & Nascimento, 2018; Yang & Zhang, 2017). Thus to be suc-
cessful in implementing sustainable practices, a sustainable relationship
between buyer and supplier must be in place (Kumar & Rahman, 2016).
From time to time, companies use the sustainable relationship as an
approach to inspire their partners in the supply chain to accept social sus-
tainability practices (Nath & Agrawal, 2020; Toussaint, Cabanelas, &
Blanco-Gonzalez, 2021), which also helps in building commitment and
trust in perpetuity (Cheung & Rowlinson, 2011; Clemens & Douglas, 2006;
Ilyas, Abid, & Ashfaq, 2020). GBSR ensures that the available resources are
used effectively to improve social sustainability (Awan, 2019; Awan &
Khan, 2021). Neutzling et al. (2018), Agi and Nishant (2017), Klassen and
Vachon (2009) also confirmed that a sustainable buyer-supplier relationship
is required to implement sustainability practices throughout the supply
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 11
management support such as reward will curtail the firm’s effort to achieve
sustainability, especially social sustainability in the supply chain (Dubey
et al., 2017) Hence the following hypotheses are stated:
H2a. The reward has a positive effect on social sustainability.
H2b. The reward has a positive indirect effect on social sustainability through GBSR.
Methodology
To test the hypotheses proposed by the authors, data was collected from
six (6) cocoa growing districts in the Western Region of Ghana. The
Western Region is located in south Ghana, which spans from the Ivory
Coast in the west to the Central region in the east, includes the capital; the
large twin city of Sekondi-Takoradi on the coast, coastal Axim, and a hilly
inland area including Elubo. The region produces the largest percentage of
Ghana’s cocoa. Farmers were conveniently sampled from the major cocoa
districts in the Region to participate in the study. This is because they pos-
sess the requisite knowledge to help answer the questionnaire. The
respondents completed a structured questionnaire. Before distributing the
questionnaire, the researcher explained and introduced the questionnaire to
the respondents. The respondents were informed that their participation in
the survey was purely voluntary and their submissions would be used for
only academic purposes. In other words, they had the right to decline from
participating in the survey. Those who agreed to participate in the survey
used approximately twenty (20) minutes to complete the questionnaire.
The researcher responded to all ambiguities identified during the introduc-
tion and explanation of the questionnaire. Eligibility of the respondents
was not difficult because they were all selected from the COCOBOD regis-
ter that was provided at the various districts. To ensure a high response
rate, respondents were promised that any information they provide would
not be shared with a person or organization and that only the researcher
would have access to the data. A total of 400 questionnaires were distrib-
uted but 333 questionnaires were received. This represents a response rate
of 83.3%. However, 328 questionnaires were found usable for analysis. The
instruments used to measure the constructs in the model were sourced
from the extant literature. The first part of the questionnaire asked the par-
ticipants to indicate whether they would like to participate in the survey or
not. This was to provide the opportunity for the respondents to freely
decide and consent to participate in the survey. The subsequent section of
the questionnaire captured the respondents’ demographic profile. The last
part of the questionnaire contained items that measured the latent varia-
bles. A 5-point Likert scale of 5 ¼ representing strongly agree to
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 13
assess collinearity among latent variance. The threshold value included VIF
5 to depict potential collinearity problems (Hair et al., 2011) . The path
coefficients were assessed using þ1 to show the positive strong relationship
in the structural model. In a situation where the path coefficient signifi-
cantly depends on its standard error through bootstrapping, the study used
p-value and t-value for the structural path coefficient. The t-value was esti-
mated at 1.96 at the 0.05% level of significance.
adequacy of this dimension of the study was 0. 888. Hence, showing a high
significance of these variables under this dimension in correlating with
each other differently from 0 or an identity matrix. It means that the sam-
ples used for the factor analysis are adequate thus the need for fac-
tor extraction.
Construct reliability
Construct Reliability was explored using Composite Reliability (CR). The
CR coefficient of 0.70 or higher is considered to have good scale reliability
(Hair et al., 2010). The results as shown in Table 4 shows the computed
Composite Reliability (CR) of all the latent variables ranges between 0.792
and 0.875, and all were above the 0.70 thresholds. Therefore, produces evi-
dence that all the latent variables have good reliability. Additionally,
Cronbach’s alpha was also measured to determine the reliability of the
item. Although Wang and Tai (2003) were of the view that composite reli-
ability is very similar to Cronbach alpha, Nunnally and Bernstein (1994)
hold the view that there is the need to measure the two. The Cronbach
alpha values ranged between 0. 610 and 0.832. All the latent variables were
above the 0.60 thresholds as recommended by (Huang et al. 2017; Nuanally
and Bernstein, 1994) . For convergent validity, it is required that AVE val-
ues be greater than 0.5 to confirm convergent validity, the results in Table
1 showed that AVE and Factor Loadings were greater than 0.5 hence the
16 D. K. AMOAKO ET AL.
result confirms the construct’s ability to explain over half of the variations
of its indicators.
Discriminant validity
The study also explored the extent to which individual constructs are diver-
gent from other constructs (Hair et al., 2010; Henseler et al., 2016b). To
confirm the discriminant validity, it is required that the diagonal values
(square root of AVE) of each latent variable have higher values than its
highest correlation of the construct. Thus, the result in Table 2 supports
discriminant validity. The result again confirms the absence of multicolli-
nearity (Byrne, 2013) .
To add to this, Henseler et al. (2015) are of the view that to further con-
firm the presence of discriminant, the heterotrait-monotrait ratio of corre-
lations (HTMT), which is a multitrait-multimethod matrix, ought to be
explored to validate the result of the Fornell-Larcker (1981) criterion.
Therefore, the HTMT technique was used to test the discriminant validity.
According to Kline (2011), to confirm discriminant validity, the HTMT
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 17
value should not be better than 0.85. Gold et al. (2001) on the other hand
believe that the HTMT value should not be more than 0.90 to confirm dis-
criminant validity. The result as presented in Table 3 indicates that all the
values passed the HTMT 0.90 (Gold et al., 2001) and the HTMT 0.85
(Kline, 2011). Consequently, using both the Fornell and Larcker (1981) cri-
terion and the heterotrait-monotrait ratio of correlations (HTMT), the
results indicate that discriminant validity was realized.
Hypotheses testing
The results of the analysis for the structural model path coefficients signifi-
cance levels as presented in Table 4 revealed that all the hypotheses were
confirmed. The result revealed a significant positive relationship between
Reward and Social Sustainability (b ¼ 0.127, p < .05). The training showed
a significant positive effect on Social Sustainability (b ¼ 0.187, p < .01),
Reward was also significantly related to Green Buyer-Supplier Relationship
(GBSR) (b ¼ 0.277, p < .01). The training was significantly related to Green
Buyer-Supplier Relationship (GBSR) (b ¼ 0.429, p < .01), and finally, Green
Buyer-Supplier Relationship (GBSR) showed a significant positive effect on
Social Sustainability (b ¼ 0.457, p < .01) (Figure 2).
Mediating analysis
The mediating effect as examined by Preacher and Hayes (2008) recom-
mended compliance by Hair et al. (2013) for mediating analysis and model
bootstrapping for exploring indirect effects of the mediating variables
(Green Buyer-Supplier Relationship). The results revealed that both trust
and governance significantly mediate the relationship between Top
Management Support on Social Sustainability in Ghana’s Cocoa Supply
Chain (Table 5) .
18 D. K. AMOAKO ET AL.
Figure 2. Measurement of Model Path Coefficients the relationship between training, reward,
and GBSR on social sustainability in Ghana’s Cocoa Supply Chain.
Bentler, 1999) is considered a good fit. Henseler et al. (2014) introduce the
SRMR as a goodness of fit measure for PLS-SEM that can be used to avoid
model misspecification. Table 7 shows that this study model’s SRMR was
0.076, which confirms that this study model had a good fit, whereas the
Chi-Square was equal to 618.314 and Normed Fit Index (NFI) equal to
0.963 was measured.
Discussion of results
The purpose of the study was to examine the effect of Training and
Reward on Social Sustainability in Ghana’s Cocoa Supply Chain and the
Mediating Role of governance and trust in the attainment of such sustain-
ability. The outcome of the study, therefore, sheds light on the relevance of
Training and Reward in ensuring Sustainability in Ghana’s Cocoa Supply
Chain. The study provides useful information to policymakers,
COCOBOD, and the Government of Ghana. The study provides a Cocoa
Supply Chain Sustainability framework for optimal understanding of the
effect of Training and Reward on Social Sustainability in Ghana’s Cocoa
Supply Chain. The study concludes that both Training and Reward have a
positive relationship with SCS (social sustainability) in the cocoa supply
chain. This confirms earlier assertions that supply chain sustainability could
be realized or made possible by the resources committed by top manage-
ment (Huang, Wu, & Rahman, 2012; Huang et al., 2012). This is to say
that, to ensure sustainability, top management must wholly support it and
actively partake in it. (Bakker, Fisscher, & Brack, 2002; Rice, 2003) In add-
ition, Law and Gunasekaran (2012) posit that, sustainable development in
an organization must be supported by a strategic policy by strategic-level
personnel. In this regard, the absence of management support will mitigate
the firm’s effort to achieve sustainability in the supply chain (Dubey
et al., 2017).
The study also found that Training and Reward have a significant posi-
tive effect on GBSR (trust, governance). This provides evidence that, to be
20 D. K. AMOAKO ET AL.
Conclusion
The findings of the study on the mediation role of green buyer-supplier
relationship (trust and governance) coupled with the positive correlation
between training; reward and social sustainability provide support to the
Resource Base View and Social Exchange theory. According to the Social
Exchange theory, firm performance improvement or sustainability of firms
can highly be achieved through increasing coordinated efforts between
JOURNAL OF INTERNATIONAL FOOD & AGRIBUSINESS MARKETING 21
exchange partners within the supply chain. This means that proper rela-
tionship amongst supply chain partners within the cocoa industry is very
important. In establishing the right linkage between the COCOBOD and its
partners, trust and governance cannot be downplayed. Practically, the find-
ings demonstrate the existence of GBSR among COCOBOD and its part-
ners such as the cocoa farmers. This indicates that the role of Top
Management Support such as training and reward in cocoa supply chain
operations is very important and cannot be ignored or overemphasized.
Despite this level of attention, it is vital to expound that training and
reward help in achieving social sustainability in the cocoa sector.
districts, other researchers could consider expanding the sample size and
the area of data collection to cover more cocoa-growing districts across the
six cocoa regions in Ghana. Future research may also consider examining
farmers’ retirement package as an incentive to improve production per-
formance and social sustainability in the cocoa industry. Since the study
only considered Training and Reward on social sustainability, other studies
can also examine how Supplier Development mediates or moderates
Management Support and social sustainability. The future researcher can
also explore other measures of sustainability such as Economic and
Environmental Sustainability in the Cocoa Supply Chain.
Disclosure statement
No potential conflict of interest was reported by the author(s).
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