Effect of supply chain management practices on customer development and start-up performance

Purpose: The number of entrepreneurial start-ups operating in developing countries has grown tremendously in recent years. However, research suggests that most start-ups in developing countries fail shortly after becoming operational. The purpose of this paper explores how supply chain management (SCM) practices may enhance the performance of start-ups in developing countries. Design/methodology/approach: The study develops and empirically tests a research model which explores the effect of SCM practices on customer development and start-up performance. A survey of 300 start-ups operating in Ghana was conducted, with 72 usable responses obtained. The research model was analyzed using partial least squares structural equation modeling. Findings: The results confirmed the positive impact of SCM practices on customer development and start-up performance. Customer development was also found to positively impact start-up performance. Additionally, a partial mediation role of customer development on relationship between SCM practices and start-up performance was observed. Originality/value: To the best of the researchers’ knowledge, this is the first study that empirically explores the effects of SCM practices on the performance of start-ups. This is also the first study that examines the effect of SCM practices on customer development to the best of the researchers’ knowledge.