Fang Li, Shuyi Feng, Hualiang Lu, Futian Qu and Marijke D'Haese
This paper investigates the relationship between plot size and fertilizer use efficiency (FE) in Chinese large-scale farming and searches for the underlying mechanisms that…
Abstract
Purpose
This paper investigates the relationship between plot size and fertilizer use efficiency (FE) in Chinese large-scale farming and searches for the underlying mechanisms that explain this relationship.
Design/methodology/approach
Based on a household- and plot-level data set of large-scale production units (LSPUs) from Jiangsu and Jiangxi Provinces, the technical and fertilizer use efficiency of large-scale rice production is estimated by applying a translog stochastic frontier production function. The authors impose a monotonicity condition on the translog frontier using a three-step procedure to get theoretically consistent efficiency estimates. A beta regression model is then used to explore the association between plot size and LSPUs' efficiency in fertilizer application.
Findings
The average FE for the sampled plots is around 30%, which shows a large potential for LSPUs to reduce fertilizer use. A U-shaped relationship is observed between plot size and FE. The authors relate this non-linear pattern to the substitution of labour with capital-intensive technology and the efficiency differences in terms of farming performance between family and hired workers.
Originality/value
First, according to the authors’ knowledge, this paper is a first attempt to study the size–efficiency relationship focussing on fertilization practices of large-scale farming. The second contribution lies in the large-scale ranges of the plot-level data set. Third, efforts are made to reveal the mechanisms determining the plot size–FE relationship. Fourth, the authors provide guiding evidence for policymaking, as they show that the size of individual plots deserves equal attention in land consolidation decisions. Methodologically, this paper improves existing estimates of single-factor technical efficiency issued from a restricted production frontier model.
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Hualiang Lu, Jacques H. Trienekens, S.W.F. (Onno) Omta and Shuyi Feng
Following a guanxi value – buyer‐seller relationship quality – marketing behaviour scheme, this paper aims to explore how traditional guanxi supports small vegetable farmers in…
Abstract
Purpose
Following a guanxi value – buyer‐seller relationship quality – marketing behaviour scheme, this paper aims to explore how traditional guanxi supports small vegetable farmers in modern markets in China.
Design/methodology/approach
Fieldwork was performed in Jiangsu Province, PR China. A stratified random sample of 167 vegetable farmers provided data for empirical testing with partial least squares analysis.
Findings
The findings suggested that the value of guanxi networks is an antecedent to buyer‐seller relationship quality and marketing behaviour in China. Guanxi networks improve the quality of buyer‐seller relationships in terms of interpersonal trust and satisfaction. Buyer‐seller relationships influence smallholders' transaction relationships, their participation in modern markets and choice for formal contracts. Guanxi networks not only support Chinese small‐scale vegetable farmers to get access to modern high‐value markets (e.g. supermarkets and international markets), but also encourage informal transactions in the vegetable business.
Practical implications
Guanxi networks play a critical role in the modern marketing environment in China. Marketing strategies based on personal relationships should be further enhanced in order to increase participation of smallholders in modern markets.
Originality/value
Quantitative evaluation of the effects of the Chinese cultural embedded concept of guanxi in the Chinese agrifood sector fills in an important research gap.
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Hualiang Lu, Shuyi Feng, Jacques H. Trienekens and S.W.F. Omta
The purpose of this paper is to investigate the effects of network strength, transaction‐specific investments and inter‐personal trust on business relationship satisfaction for…
Abstract
Purpose
The purpose of this paper is to investigate the effects of network strength, transaction‐specific investments and inter‐personal trust on business relationship satisfaction for small‐and‐medium‐sized enterprises (SMEs) involved in agri‐food processing and exporting in China.
Design/methodology/approach
Survey data collected from 80 agri‐food SMEs in Jiangsu Province were used for empirical testing. The authors applied an ordered logit regression approach for model estimation.
Findings
The results demonstrate that strong guanxi networks, high level of transaction‐specific investments and inter‐personal trust significantly contribute to a high level of relationship satisfaction for agri‐food SMEs in China. In addition, inter‐personal trust shows a moderating effect on the relationship between transaction‐specific investments and relationship satisfaction.
Practical implications
Business relationships play a critical role in the modern market environment. Relational arrangements (based on guanxi and inter‐personal trust) should be further enhanced in order to yield satisfied business relationships for SMEs in China.
Originality/value
The paper extends our understanding of relationship (guanxi) marketing, as well as marketing practices for agri‐food SMEs in China.
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Ruerd Ruben, Dave Boselie and Hualiang Lu
The paper seeks to understand the conditions that motivate Asian supermarkets' choices for vegetable sourcing through wholesale procurement or preferred supplier systems.
Abstract
Purpose
The paper seeks to understand the conditions that motivate Asian supermarkets' choices for vegetable sourcing through wholesale procurement or preferred supplier systems.
Design/methodology/approach
Insights from transaction cost theory are used to analyze the evolution of fresh produce procurement regimes by supermarkets in Bangkok and Nanjing.
Findings
Trade‐offs between higher production‐cum‐investment costs (i.e. fixed investments, variable production costs and economies of scale) with expected savings in transaction costs (governance and opportunistic behaviour) are registered that could hinder contractual delivery.
Research limitations/implications
Transaction costs play an important role in shaping procurement regimes. Information, negotiation and monitoring costs are high in early phases of market development, but may be reduced when retailers establish direct and contractual relations with selected producers. Such preferred supplier arrangements may be helpful to reduce risks related to delivery frequency and product quality, but require substantial investments that only become feasible when opportunistic behaviour is adequately controlled. The nature of supplier‐buyer relations alters in a number of subsequent phases from chain optimisation to integral chain care.
Practical implications
With the establishment of large‐scale supermarkets in Asia, buyers need more information about the quality of products and the creditworthiness and reputation of sellers and therefore increasingly rely on contractual delivery relationships. For preferred supplier regimes, scale economies and enforcement of mutual trust are key issues to establish stable relations.
Originality/value
The shift from wholesale purchase towards preferred supplier regimes in emerging economies involves large investments that can only be met if governance costs are reduced.
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Jiqin Han, Hualiang Lu, Jacques H. Trienekens and S.W.F. (Onno) Omta
Supply chain integration (SCI) is one of the most distinctive dimensions in achieving long‐term competitive advantage in the business world. Although considerable state‐of‐the‐art…
Abstract
Purpose
Supply chain integration (SCI) is one of the most distinctive dimensions in achieving long‐term competitive advantage in the business world. Although considerable state‐of‐the‐art studies regarding the SCI concept and its dimensions have been conducted, empirical research by using the data from agri‐food firms in China to examine the relationship between SCI and firm performance attract little attention. The purpose of this paper is to investigate the effects of SCI on firm performance in pork supply chains in China.
Design/methodology/approach
The study follows a causal research approach and survey methodology to collect data from 229 pork processors. The SCI‐firm performance link is examined in two relationships: the pork processors with their upstream pig (meat) suppliers and with their downstream customers. Partial least squares method was used to test the causal relationships.
Findings
The results suggest that internal integration and buyer‐supplier relationship coordination are significantly related to firm performance in both relationships. Information technology integration is not significantly related to both upstream and downstream relationships. Logistics integration significantly contributes to pork processors' performance in relationships with downstream customers.
Originality/value
The extension of the SCI construct contributes to supply chain management theory in the context of China.
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Vikas Mishra, Ariun Ishdorj, Elizabeth Tabares Villarreal and Roger Norton
Collaboration in agricultural value chains (AVCs) has the potential to increase smallholders’ participation in international value chains and increase their benefits from…
Abstract
Purpose
Collaboration in agricultural value chains (AVCs) has the potential to increase smallholders’ participation in international value chains and increase their benefits from participation. This scoping review explores existing collaboration models among stakeholders of AVCs in developing countries, examines enablers and constraints of collaboration and identifies policy gaps.
Design/methodology/approach
We systematically searched three databases, CAB Abstracts, Econlit (EBSCO) and Agricola, for studies published between 2005 and 2023 and included 59 relevant studies on AVC collaboration.
Findings
The primary motivations for collaboration are to enhance market access and improve product quality. Key outcomes of collaboration include improvements in farmers’ welfare, market participation and increased production; only a few studies consider improved risk management as an important outcome. Robust support from government and non-governmental entities is a primary enabler of collaboration. Conversely, conflicts of interest among stakeholders and resource limitations constrain collaboration possibilities. Collaboration involving high-value crops prioritizes income increases, whereas collaboration involving staple crops focuses on improving household food security.
Research limitations/implications
This study may have publication bias as unsuccessful instances of collaboration are less likely to be published.
Originality/value
This study is unique in highlighting collaboration models’ characteristics and identifying AVC policy and programmatic areas where private firms, farmers’ groups, local governments and donor agencies can contribute.