Buyer supplier relationship and firm performance, a mediated analysis of customer satisfaction survey of the hospitality industry in Ghana

Abstract

The hospitality industry in Ghana has experienced substantial growth as a result of tourism and investments. However, there is limited research on buyer-supplier relationships in this sector, with most studies focused on other sectors and disregarding the impact of customer satisfaction. Given the importance of this industry and the role played by customer satisfaction in firm performance, this study investigated the relationship between the dynamics of buyer-supplier relationships, consumer satisfaction, and the performance of firms operating in Ghana's hospitality industry. The study employed a quantitative research approach and explanatory design to investigate the buyer-supplier relationships in Ghana’s hospitality sector. A stratified random sampling method was employed to collect data from a sample size of 120 individuals. The data was gathered using a structured questionnaire. By utilising regression analysis and mediation analysis, the findings indicated a positive link between Buyer-Supplier Relationship and Firm Performance, demonstrating that collaborative supplier associations have a significant impact on company performance. Additionally, the study found that a strong Buyer-Supplier Relationship has a positive impact on Customer Satisfaction, leading to enhanced service quality and increased customer satisfaction. The study also found that Customer Satisfaction improved Firm Performance by increasing customer loyalty, revenue, and overall organisational success. Finally, the study found that Customer Satisfaction partially mediated the impact of Buyer- Supplier Relationships on Firm Performance in the hospitality industry in Ghana. This highlights the important role of Customer Satisfaction in translating the strengths of these relationships into tangible outcomes. Given the significant impact of buyer-supplier relationships on firm performance, it is recommended that hospitality firms prioritise the cultivation of collaborative relationships with suppliers. This involves promoting open communication and collaborative solutions to improve operational efficiency and customer satisfaction. It is crucial to exceed customer expectations by tailoring offerings through strong buyer-supplier connections, thus emphasising customer-centred service delivery. Furthermore, it is crucial to establish reliable systems for ongoing measurement and monitoring of customer satisfaction. This includes collecting feedback, analysing preferences, and promptly resolving any issues. These measures are necessary to ensure long-term satisfaction and enhance the performance of the industry.