Supplier development and sustainability performance of cocoa agribusinesses in Western-North Region Ghana: the role of firm ambidexterity and operational efficiency

Purpose The study aims to examine how direct supplier development (SD) projects affect the operational efficiency (OE) of cocoa farms (agribusinesses) in the Western North Region of Ghana. It also assesses the purported mediating roles of firm ambidexterity (FA) and OE in achieving sustainable performance (SP). The moderating role of firm size is also considered. Design/methodology/approach Primary data were collected from 424 cocoa farm owners and managers using a structured questionnaire. Partial least squares structural equation modelling was configured via the two-stage embedded approach to test the formulated hypotheses. Findings Results show that FA mediated the relationship between direct SD projects and OE. Firm size also moderated the direct SD project and OE relationship. Mass spraying (MS) significantly influenced the OE of the cocoa farms. Cocoa rehabilitation, artificial pollination and mass pruning did not influence the OE of cocoa farms in the Western North Region of Ghana. Research limitations/implications Suppliers of cocoa beans were targeted for the study; hence, generalisation is limited with respect to the case of licensed buying companies in the context. Originality/value Firm size is a significant positive moderator of the predictive relationship between OE and SP of the first-tier cocoa suppliers. Only MS improved significantly the OE of the cocoa farms. FA does not mediate the predictive relationship between direct SD projects and SP of cocoa farms.