Power asymmetries in supply chains and implications for environmental governance: a study of the beef industry

Abstract

Purpose Supply chain governance constitutes the rules, structures and institutions that guide supply chains toward various objectives, including environmental sustainability. Previous studies have provided insight into the relationship between governance and sustainability but have overlooked two crucial dimensions: power dynamics and the influence of outside actors. This paper aims to address these two gaps by measuring differential power (i.e. power asymmetries) among actors across the supply chain, including external actors. Design/methodology/approach This paper quantifies power dynamics across the entire chain through a structured survey in which supply chain participants rank their peer’s ability to affect environmental and social outcomes. This paper tests this approach by surveying 200 industry professionals (e.g. feedlot owners, retailers) and external actors (e.g. NGOs) in the US beef sector. Findings Respondents ranked the most powerful actors as follows: feedlot owners; processing plant owners; and regulatory agencies. Results also revealed that trade associations, retailers and cow–calf producers and ranchers perceive a sense of powerlessness. This study reveals multiple power nodes and confirms a shift in the power structure depending on which indicator respondents considered (e.g. environmental impacts vs employee safety). This study concludes that the buyer–producer dichotomy often used to assess supply chain governance fails to capture the complex dynamics among actors within supply chains. Originality/value This study demonstrates a novel approach to measure perceptions of power in supply chains. This method enables researchers to map networks of power across entire supply chains, including internal and external actors, to advance understanding of supply chain governance dynamics. Previous studies have misidentified who governs environmental outcomes in supply chains, and NGOs have overestimated the power of consumers and retailers to influence producers.

Power dynamics in business relationships in a turbulent environment: focus on anticipated power consequences and value creation

“…We may understand power-related consequences for actors as a result of actions taken within the business relationship, connected to the utilization of power (Chamanara et al, 2023;Siemieniako, Makkonen, & Mitre ˛ga, 2023;Vann Yaroson, Breen, Hou, & Sowter, 2023).…”

“…An example of building resilience as an implementation of transformative practices can be seen in the response of supply chain actors to high environmental turbulence caused by the need to meet the requirements of new restrictive sustainability regulations and the associated threat to value creation between supply chain actors. Chamanara et al (2023) examined perceived power from a systems perspective in the beef supply chain, in terms of the global environmental impacts associated with livestock production. The main rationale for this study was the need to implement complex and costly changes in beef production throughout the supply chain to comply with new environmental regulations.…”

A Cloud- and Game Model-Based Approach to Project Evaluations of Sustainable Power Supply Investments

“…The research surrounding sustainable power supply investments has evolved, utilizing fuzzy membership functions for enhanced distribution network operations [5]. Despite such progress, challenges like a reliance on expert judgments and the subjectivity in determining weights remain, potentially skewing results [6]. The incorporation of cloud models offers a promising solution, facilitating a balanced blend of qualitative and quantitative data and promising more accurate evaluations.…”