INTEGRATION INTO SUPPLY CHAIN NETWORKS IN MANUFACTURING FIRMS IN GHANA: THE EFFECT OF CHALLENGES

In this paper, we examine the effects of three components or constructs of challenges on integration into supply chain networks after confirming them using Principal Component Analysis in a previous study. The study population was senor supply chain employees in selected manufacturing firms in Accra, Ghana. Simple random sampling technique was used to select 350 respondents. Data was collected using a self-administered questionnaire. The study’s results indicate that the first component of challenges designated micro-environment negatively correlates to Integration, r (312) = -0.954, p < .05. Moreover, macro-environment challenges make a negative correlation with Integration, r (312) = r (312) = -0.799, p < .05. Technical challenges make a weak and negative correlation with Integration, r (312) = -0.395, p < .05. Moreover, each component/construct significantly predicts Integration at 5% significance level (p < .05). Micro-environment challenges account for 91% of the total variation, while macro-environment alone accounts for 4.6% of the total variation. Technical challenges account for 0.4% of the total variation. To maximise the effectiveness of integrating into supply chain networks, managements of manufacturing firms must remedy challenges found in each component based on the gravity of influence made by each of them.