Houda Ghozzi, Claudio Soregaroli, Stefano Boccaletti and Loïc Sauvée
Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some…
Abstract
Purpose
Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some retailers and processors introduced their own non-GMO standards, with the intention of avoiding the presence of GMOs in their products. This paper aims to understand how the implementation of these new retailer-driven standards affects governance structures along the supply chain and the determinants of such change focusing on transaction cost approach (TCA) vs resource-based view (RBV).
Design/methodology/approach
The non-GMO introduction is investigated as a case study in the poultry industry of France and Italy. The case relies on data primarily collected from interviews with the main actors at five stages of the supply chain from the retailer up to animal feed and crop production.
Findings
Findings indicate that the introduction of non-GMO products had different impacts on the transactions along the supply chain, generally leading to more integrated relationships. Theoretical relevance depends on the observed transaction and the type of governance structure considered. Interestingly, only RBV explains the shift toward hierarchical governance when this is observed.
Originality/value
This paper contributes to the empirical literature highlighting the upstream effects caused by the adoption of new standards. On the theoretical side, building on Conner and Prahalad’s (1996) seminal work and leveraging on the concepts of opportunism, “potential” superior knowledge and strategic importance of an activity, this research suggests a comparative framework for identifying governance structures and their determinants under TCA and RBV.
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Francesca Passuello, Stefano Boccaletti and Claudio Soregaroli
The purpose of this paper is to investigate the governance implications of non-genetically modified (GM) voluntary private standards on the private label poultry meat value chain…
Abstract
Purpose
The purpose of this paper is to investigate the governance implications of non-genetically modified (GM) voluntary private standards on the private label poultry meat value chain of the leading Italian retailer. Considered aspects are: first, the organizational practices adopted along the chain to assure effective segregation; second, the changes in the characteristics and governance of the key transaction (meat processor-retailer); finally, what makes the chain economically sustainable.
Design/methodology/approach
A picture of the chain is obtained collecting information from the businesses involved; the snowball selection criterion is used in identifying people to interview. Transaction Cost Economics (TCE) is used to conceptualize the organizational changes in the meat processor-retailer transaction; the coherence of expected-actual variations in asset specificity, uncertainty and frequency, as well as of the observed governance with TCE predictions is assessed.
Findings
The creation of the non-GM chain required investments by both the key actors involved and the establishment of a partnership based on trust and mutual dependence. The increase in uncertainty coupled with the rise in asset specificity led to higher transaction costs, requiring a shift of the governance structure toward the right side of the market-hierarchy continuum to economize on costs and improve supply chain performance. TCE well explains the changes occurred. The retailer values the return on image as a strategic asset and bears the non-GM extra costs making the chain economically sustainable.
Research limitations/implications
The implications of the findings are twofold. First, they help to identify the critical factors for an effective and economically sustainable segregation of non-GM products/raw materials along agro-food value chains. Second, they show how chain actors could adopt tighter governance structures in order to comply with binding technical and quality specifications, economize on transaction costs and improve supply chain performance.
Originality/value
Retailer-led private standards used as regulation and enforcement mechanisms in vertical relations, as well as their organizational implications in the governance of transactions between actors in agro-food value chains have received insufficient attention. This research contributes to fill out this gap.
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Mary Luz Olivares Tenorio, Stefano Pascucci, Ruud Verkerk, Matthijs Dekker and Tiny A.J.S. van Boekel
In this paper, a conceptual and methodological framework based on empirical evidence derived from the case of the Colombian Cape gooseberry (CG) supply chain is presented. Using…
Abstract
Purpose
In this paper, a conceptual and methodological framework based on empirical evidence derived from the case of the Colombian Cape gooseberry (CG) supply chain is presented. Using this case study, this paper aims to contribute to the extant literature on the internationalization of food supply chains by explicitly considering the alignment of quality attributes and supply chain complexity as key elements to understand the process.
Design/methodology/approach
This research has been designed to be qualitative, inductive and exploratory, thus involving multiple data gathering methods and tools. More specifically, during the first stage of the empirical analysis, this study has mapped and analysed preferences and perceptions of product quality at both the consumer and supply chain levels. Then, this paper has analysed the degree of alignment and complexity in the supply chain and finally, this study has derived scenarios for the internationalization of the supply chain.
Findings
The results indicate tensions between supply chain actors related to quality attribute alignment and complexity, which have the potentials to impact the internationalization scenarios of the CG supply chain. Particularly the findings highlight how alignment and complexity of sourcing and product quality attributes can affect supply chain design strategies in different internationalization pathways of a niche food commodity.
Research limitations/implications
The findings have implications in terms of supply chain design perspectives. In fact, while an approach, which would consider only a transactional or governance perspective would have tackled the problems of misalignment – for example, between farmers and wholesalers or wholesalers and international traders/retailers – it would have ignored the problem of alignment caused at the retailing and consumption stage. In the attempt to internationalize the CG supply chain, farmers, processors and traders are misaligned in relation to the preferences of the targeted final consumers, Dutch/Western European consumers in the case.
Practical implications
Given the misalignment issues, this paper identifies a step by step approach as the most suitable pathway to design an internationalized supply chain because it allows the CG commodity supply chain to develop the potential market of credence quality-attribute by supporting the health-promoting compounds of the fruit. In this way, the CG supply chain could also progressively scale up and work on solving its misalignment issues by building a coordination structure of the chain, with quality control and logistics likely led by large retailers.
Social implications
The study indicates that a process of internalization related to a scenario of a “globalized commodity” can only emerge through processes of coordination and integration at the production level, likely led by forms of producers (farmers) associations or a network of producers and traders, leading to strong marketing activities and scale up in terms of volumes. This has profound social implications and calls for rethinking how this study designs the internationalization of niche commodity supply chains.
Originality/value
Through the application of a mixed methodology approach, in which conceptual, qualitative and quantitative methods have been combined, this paper has been able to identify alternative scenarios to the internationalization and the scale-up of a niche food commodity supply chain, with implications for its design and governance. More specifically in the conceptual model, the different scenarios have been related to the risk of misalignment. The model also identifies alternative pathways of internationalization which may or may not arise according to the way complexity unfolds. In the approach, this study has unpacked complexity by looking into two key dimensions: transactional complexity and quality-attribute complexity.
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Josef Spurný, Ivan Kopeček, Radek Ošlejšek, Jaromír Plhák and Francesco Caputo
The aim of the paper is to analyze the impact of cooperativeness of managers who occupy central positions in interaction networks on the performance and stress levels of a whole…
Abstract
Purpose
The aim of the paper is to analyze the impact of cooperativeness of managers who occupy central positions in interaction networks on the performance and stress levels of a whole organization.
Design/methodology/approach
To explore this relationship, a multi-parameter agent-based model is proposed which implements the prisoner’s dilemma game approach on a scale-free network in the NetLogo environment. A description of the socioeconomic aspects and the key concepts implemented in the model is provided. Stability and correctness have been tested through a series of validation experiments, including sensitivity analysis. The source code is available for further exploration and testing.
Findings
The simulations revealed that improving the stress resistance of all employees moderately increases organizational performance. Analyzing managers’ roles showed that increasing only the stress resistance of managers does not account for significantly higher overall performance. However, a substantial increase in organizational performance and a decrease in stress levels are achieved when managers are unconditionally cooperative. This effect is stronger for the lowered stress resistance of employees. Therefore, the willingness of managers to cooperate under all circumstances can be a key factor in achieving better performance and building a more pleasant, stress-free working environment.
Originality/value
This paper aims to present a model for analyzing cooperation, specifically in the organizational context, extending the prisoner’s dilemma with novel concepts and mechanisms. Although the results confirm the existing theories about the importance of central nodes in complex networks, they also provide further details on how the cooperative behavior of central nodes (i.e. the managers) might benefit the organization.