Blockchain is an emerging meta-technology and considered a new institutional technology with the potential to change the governance of vertically integrated food supply chains. This paper investigates the effects on coordination mechanisms in vertically cooperating agri-food networks that result from the implementation of different blockchain technology platform types (BCTPT). The research is based on an extensive literature overview and exploratory use cases of BCTPT implementations in the agri-food industry which are presented to illustrate the applicability of the findings. Our analysis shows that BCTPT predominantly differentiate through the coordination mechanisms exerting of power, information sharing, decision-making, and collective learning benefits. We also reveal that blockchain use cases with high success rates typically operate in a vertical ecosystem where a focal firm assumes the responsibility for coordinating the activities in the supply chain network. These use cases are typically operationalized in tracking and tracing applications as well as in provenance-based information provision, which either operate in vertically coordinated private blockchain or consortium-type blockchain platforms. We conclude that the choice of a specific BCTPT with its respective coordination mechanisms is a key determinant of the economic success of the intended use case, the efficient management of the supply chain network, and eventually for the chosen digital business model. This paper will close a research gap, as the potential impacts of different blockchain technology platform types on digital agri-food business models and its supply chain management have scarcely been researched.
Abstract. Li S, Bitsch L, Hanf JH. 2021. Grape supply chain: Vertical coordination in Ningxia, China. Asian J Agric 5: 12-21. Since 2018, China has been the second-largest grape-growing country in the world, with 875 thousand hectares in total. A former study indicated a transformation within the wine grape supply chain management in the Chinese wine market, from traditional coordination to significant vertical integration. The Ningxia Helan Mountain’s Eastern Foothill wine region (China) is considered to be the best wine region in China and has potential to lead domestic wine production. This study summarizes the typology of grape supply models in the Ningxia wine industry. We also examine influencing factors for the arrangements of current vertical coordination models of grape materials supply, particularly the hybrid organizations and contractual relationships are analyzed.
PurposeRegarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. The wine production process requires close coordination between growers and processors to avoid disruption and instability in the supply chain of the wine grapes. However, vertical coordination in the Chinese wine regions has received little attention. Based on the existing theoretical background on vertical coordination, this study aims to detect the evolution processes of vertical coordination in the Chinese grape market.Design/methodology/approachExploratory qualitative research fits with the aim of this study. From December 2018 to January 2019, interviews with grape growers and wine processors of various Chinese wine-producing areas took place. After transcribing all recorded files into text, a qualitative data analysis following the approach of Mayring (2015) was used to analyse and interpret the data.FindingsThe models of vertical coordination in the grape supply in China vary between the producer's requirements on grape quality/quantity and the arrangements of grape supply chains, which are diverse depending on regional strategies of the local government.Research limitations/implicationsHowever, in this research, the authors did not get into details on the organization of the contractual coordination, and due to the limited access to grape growers, the relationship between farmers and processors cannot be analysed in detail. With a better understanding of the coordination relationship and enhanced contract enforcement, the vineyard management and grape supply chain management can be better performed, inducing a steady industrial development.Originality/valueRegarding the global development of the wine industry, China has gained a notable share in terms of wine consumption, and its domestic wine production has increased steadily since 2000. However, vertical coordination in the Chinese wine regions has received little attention. The study provides a first insight into the grape market structures, as very little is known.
Within the German wine industry, more and more wine estates engage in collaborations to secure grape and wine qualities and quantities to meet the market demands, creating vertically coordinated supply chain networks. The focus of many scholars in this field is mainly set on structural arrangements and less on relational management mechanisms, as studies of structures and their implementation are more readily undertaken and quantified. Both structural and relational mechanisms and their influence on the different levels such as network-, dyad- and firm-level are researched. In the agri-food industry, small- and medium-sized businesses, often family-led, prevail, amplifying the influence of single decision-makers on cooperative decisions. In such a setting, personal relationships and social bonds are stronger than in classical B2B relationships in other industries. Research on chain management does not, generally, take the interpersonal or individual influence of decisions-makers into account. However, recent and emerging literature indicates an influence of managers on chain management. Hence, the questions arise how do managers affect decisions and how can the interpersonal influence be managed? This paper aims to expand the theoretical framework of chain management including the impacts of behavioural and interpersonal aspects in decision-making regarding relationship management.
The current chapter demonstrates an application of the theoretical framework of vertical coordination, more specifically the application of contracting in productive partnerships, to integrate smallholders into the value chain of a specialised crop. The aim of the chapter is to derive implications for industry participants on how to integrate smallholders with vertical coordination. Therefore, we take a closer look on vertical coordination and contracting in productive partnerships. We have taken the value chain of brandy production in Armenia and used the Yerevan Brandy Company (YBC) to perform our case study, with which we can analyse vertical coordination mechanisms used by the company. Further, we want to identify factors that drive processors and smallholders to enter into contracts. Qualitative interviews were conducted with the YBC, their grape suppliers, as well as experts from related fields. We analysed the data with a qualitative content approach. Results show that the YBC uses different measures of vertical coordination, i.e., contracts and farm assistance in the form of consultancy and input supply. The company tends to use production contracts rather than pure marketing contracts, as it is actively engaged in the production process. The use of contract farming is beneficial for both the processing company and the smallholders.
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