Case study analysis on supplier commitment to added value agri-food supply chains in New Zealand

Abstract

This research identifies what attracts suppliers to be committed to long-term relationships in New Zealand agri-food supply chains where suppliers are required to consistently deliver to high product specifications. It also looks at what factors determine supplier's ongoing commitment and how to build strong enduring supply chain relationships. Semi structured interviews were undertaken with suppliers from New Zealand agri-food exporting companies. The main factors that attracted suppliers to these supply chains were; increased price certainty, premium prices and relationship quality. Many suppliers wanted to break away from the agricultural commodity cycle, which they saw as disconnected from customer demand, and characterised by price volatility. They saw themselves as better than average producers with the ability to produce high quality products. They valued the relationship with the companies they supplied as this gave them access to premium markets where they felt they would be rewarded for their effort. There was a high level of trust in these relationships and this was built on openness and transparency in communications and confidence in the character of the company personnel. The success of differentiated agri-food supply chains requires capable and committed suppliers. Companies that are developing a differentiated strategy need to identify suppliers who have the ability to produce high quality products and want to be involved in a customer focused supply chain enables them to access to premium markets.Jel Codes: Q13

Relationship quality and supplier performance in food supply chains

“…Finally, the New Zealand context provides some interesting aspects of the research. This is the result of the free-range and grass-fed production systems, the features of red meat products, the heavy reliance on export markets and the consequent geographical distance between production and consumption (Clemens and Babcock, 2004;Grunert et al, 2005;Lees and Nuthall, 2015;Lees and Saunders, 2015;Trienekens et al, 2018).…”

Capital social en la perspectiva de la teoría de recursos y capacidades: un análisis bibliométrico

“…De manera semejante, aunque en diferente grado, se considera que las relaciones sociales entre compradores, vendedores, empleados, tienen un impacto significativo en la innovación y el rendimiento de la empresa (Whipple et al, 2015;Overall, 2015;Tomlinson y Fai, 2016), tal y como se fundamenta en la revisión teórica. Asimismo, que para construir y mantener relaciones sociales sólidas y de calidad, son necesarias la comunicación, la confianza y el compromiso (Lees y Nuthall, 2015;Overall, 2015;Muldoon y Bauman, 2018). Es por esta razón algunas empresas están invirtiendo en el desarrollo de habilidades de gestión de relaciones internas entre sus empleados y directivos (Whipple et al, 2015), con el propósito de habilitarlos para un mejor desenvolvimiento en este ámbito.…”

“…Como se puede apreciar, el capital social se anida en las relaciones interpersonales, idea que también es apoyada por investigaciones recientes que ponen de manifiesto la importancia de construir redes de colaboración entre individuos de una organización y de estos con otras organizaciones, de manera que se facilite y promueva el acceso a recursos de todo tipo, generando con ello beneficios como confianza, satisfacción, liderazgo, compromiso, innovación y conocimiento, lo que a su vez incida en un desempeño superior de los participantes, en el marco de normas que moderen dichas relaciones sociales (Lees y Nuthall, 2015;Overall, 2015;Whipple, Wiedmer, y Boyer, 2015;Tomlinson y Fai, 2016; Jalali, Thurasamy y Jaafar, 2017; Muldoon, Bauman y Lucy, 2018).…”

Identifying critical failure factors of green supply chain management in China’s SMEs with a hierarchical cause–effect model

“…Besides knowledge and information, committed supplier is also required to allocate money, effort and time to improve the GSCM performance. Supplier commitment and cooperation enable companies to design and produce differentiated products and achieve a green and (Lees & Nuthall, 2015). In fact, many SMEs in China are willing to forge bonds with suppliers and other partners (Liu, 2012;Wu et al, 2019c).…”