Evaluating the Effect of Product Traceability on Operational Performance: A Cross-Sectional Survey of Food and Beverage Manufacturing Firms in Tanzania
DOI:
https://doi.org/10.70619/vol5iss2pp43-59Keywords:
Traceability, Product Traceability, Performance of Food and Beverage Manufacturing FirmsAbstract
The study aimed to determine the relationship between product traceability and performance of food and beverage manufacturing firms in Tanzania. The research utilized a cross-sectional design, targeting 480 individuals from 120 food and beverage manufacturing companies in Tanzania. This included managers from procurement, inspection, quality, production, and operations departments. A total of 218 individuals were sampled using a stratified random sampling method. Data analysis was carried out with the Statistical Package for the Social Sciences, version 27, applying both descriptive and inferential techniques to the quantitative data. The findings indicate that product traceability significantly enhances the efficiency of food and beverage manufacturing firms in Tanzania (R2=.609, p=.000), suggesting that approximately 60.9% of the variance in the dependent variable can be attributed to product traceability. This offers insights into how traceability systems function as strategic assets promoting competitive advantage. The notable benefits of product traceability on the performance of food and beverage manufacturing companies offer empirical support for viewing traceability as a strategic asset within a resource-based view theory. This data reinforces the idea that investing in traceability systems generates sustainable competitive advantages, as these systems are difficult for rivals to replicate and can evolve to adapt to market changes. Therefore, managers should emphasize the importance of investing in strong traceability systems, acknowledging them as strategic resources that improve company performance. Additionally, policymakers in Tanzania ought to create supportive regulatory frameworks that encourage the implementation of effective traceability systems. This may involve tax incentives for companies that invest in advanced traceability technologies. Furthermore, clear guidelines for traceability practices should be developed to ensure alignment with international standards, aiding compliance for manufacturing firms and facilitating their access to global markets.
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