Purpose
The purpose of this paper is to identify the leverage points in the Vietnamese coffee supply chain (SC) that would be used for increasing competitive advantages of the product.
Design/methodology/approach
A sequential approach by combining two established modelling techniques (causal loop diagram and Bayesian belief networks) was applied to identify the leverage points in the Vietnamese coffee SC for increasing the competitive advantages of the product. Data for the study were collected from a series of workshops and in-depth interviews with numerous relevant stakeholders of the coffee industry in the central highland of Vietnam.
Findings
The systems’ archetypes were developed and a sensitivity analysis was conducted to identify potential factors that can increase the competitive advantages of coffee production. The results indicate that higher investment in all elements of the coffee SC will lead to an enhanced competitive advantage.
Originality/value
Supply chain management (SCM) has become a potentially valuable method for improving competitive advantages, as competition is no longer only between organizations but also among SCs. Therefore, this research focus on enhancing the competitive advantages of production via SCM.
Coffee supply chain management is the global operational strategy for enhancing the competitiveness of coffee companies. Enterprises are attempting to find ways to improve their competitiveness by changing their operation strategy through methods that include the implementation of the supply chain management paradigm. However, a thorough and critical review of existing literature is yet to be carried out in order to identify pertinent factors and gain useful insights into the role and effectiveness of causal loop modelling in coffee supply chain management. In this paper, researchers develop causal relationships among different variables that present enablers and outcomes -operating within many identified feedback loops. The resulting causal loop model provides coffee production managers with a snapshot of the dynamic interactions among elements in the coffee supply chain, which helps to identify proactive action in implementing the coffee supply chain philosophy for increasing the competitiveness of coffee products. Based on this review and analysis, recommendations are made regarding the application of the causal loop method in coffee supply chain management. Important future research directions are also indicated.
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