Factors influencing contractual choice and sustainable relationships in European agri-food supply chains

Fischer, Christian; Hartmann, Monika; Reynolds, Nikolai; Leat, Philip M.K.; Revoredo‐Giha, Cesar; Henchion, Maeve; Albisu, L. M.; Gracía, Azucena

doi:10.1093/erae/jbp041

Cited by 80 publications

(73 citation statements)

References 36 publications

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“…This theory has been proven to be applicable for identifying transactions and governance types of hybrid forms in agri-food supply chain networks [36,47,48]. Hybrids are all organisational forms located between the spot market with immediately completed transactions without a durable relationship between anonymous transacting parties, and hierarchical forms of governance [49,50]. At present, hybrid forms (e.g., relation-based alliances, joint ventures, multi-actor networks, group of producers) are also the most common forms of governance in the agri-food system [47,[51][52][53].…”

Section: A Systems Approach To Evaluate Sustainability Experimentsmentioning

confidence: 99%

Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success

2017

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Abstract:In recent years, research, society and industry recognize the need to transform the agri-food system towards sustainability. Within this process, sustainability experiments play a crucial role in transforming the structure, culture and practices. In literature, much attention is given to new business models, even if the transformation of conventional firms toward sustainability may offer opportunities to accelerate the transformation. Further acceleration could be achieved through collaboration of multiple actors across the agri-food system, but this calls for a systems approach. Therefore, we developed and applied a new sustainability experiment systems approach (SESA) consisting of an analytical framework that allows a reflective evaluation and cross-case analysis of multi-actor governance networks based on business and learning evaluation criteria. We performed a cross-case analysis of four agri-food sustainability experiments in Flanders to test and validate SESA. Hereby, the key factors of the success of collaboration and its performance were identified at the beginning of a sustainability experiment. Some of the key factors identified were risk sharing and the drivers to participate. We are convinced that these results may be used as an analytical tool for researchers, a tool to support and design new initiatives for policymakers, and a reflective tool for participating actors.

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Section: A Systems Approach To Evaluate Sustainability Experimentsmentioning

confidence: 99%

Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success

2017

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“…In the food chains, it is possible to distinguish a variety of hybrid forms of transacting with different levels of vertical coordination. According to Fischer et al [42], these forms include: relational contracts, written contracts, and cross-sharing holding arrangements. Another form is represented by inter-professional agreements.…”

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

“…In the written contracts, the conditions of the agreement are formalized with a precision level depending on the information available and the contract life; this agreement has legal effects. In cross-sharing arrangements, the economic agents involved in the exchanges are independent but they share ownership rights [42,43]. Moreover, interprofessional agreements refer to framework agreements, signed by producer organizations and industry confederations, aimed at establishing the general conditions of economic exchange in a specific sector.…”

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

Banterle

Stranieri

2013

Sustainability

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Private standards are among the main measures that can be implemented to differentiate food production. Retailers have been particularly active in setting food safety and quality systems for the development of their private labels. The purpose of this paper is to identify the effects of introducing measures that guarantee the environmental sustainability of food production on vertical dyadic relations. We focus our attention on the adoption of integrated pest management (IPM) systems that are designed by retailers to support private label products, with the aim of studying how these systems affect the governance structure of transactions between retailer and farmer/processor. Transaction cost analysis is used as theoretical framework to assess changes in vertical coordination after the adoption of an IPM system. Four case studies related to food retailers in Italy were analyzed to identify changes in transaction characteristics, costs, and governance that are related to the adoption of this system. The results show that the introduction of an IPM system leads to an increase of transaction asset specificity (i.e., especially of human and material asset specificity) among the agents of the supply chain, and a decrease of the degree of transaction uncertainty. The variations in transaction characteristics determine changes in transaction costs. These changes lead to new hybrid forms of transaction governance, namely dyadic contracts, and a centralized organization of vertical relationships.

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“…These consumers are demanding greater variety and quality in the food they eat. They require a consistent year-round supply of high quality, safe food (Fischer et al 2009; Van der Vorst 2000). They also want food that aligns with their own personal values, which includes credence attributes such as environmental sustainability, animal welfare and fair trade, as well as local and organic production.…”

Section: Introductionmentioning

confidence: 99%

“…Information flow is important with differentiated products where credence quality attributes, such as animal welfare are not visible in the physical product at purchase or, even, after consumption (Nelson 1970;Dyer and Singh 1998). Therefore, to meet these consumer needs the New Zealand agricultural industry would need to move away from relying predominantly on a traditional commodity model with short-term, competitive, spot market relationships to a partnership model with increased supply chain commitment involving long-term contracts and to delivering of high quality products to meet customer demands (Fischer et al 2009). This would require suppliers who are willing to commit to meeting higher product specifications while working with less flexible delivery schedules.…”

Section: Introductionmentioning

confidence: 99%

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

Lees

Nuthall

2015

Agric Econ

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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

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Factors influencing contractual choice and sustainable relationships in European agri-food supply chains

Cited by 80 publications

References 36 publications

Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success

Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success

Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

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

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