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Examining the relationship between chain governance structures and chain performance: An empirical evidence of the dairy sector

Joanita Kataike (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium) (Department of Business and Management Studies, Mountains of the Moon University, Fort Portal, Uganda)
Adrienn Molnar (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium) (Institute of Economics, Research Centre for Economics and Regional Studies, Hungarian Academy of Sciences, Budapest, Hungary)
Hans De Steur (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium)
Xavier Gellynck (Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Ghent, Belgium)

British Food Journal

ISSN: 0007-070X

Article publication date: 9 July 2019

Issue publication date: 9 July 2019

Abstract

Purpose

The purpose of this paper is to analyze the influence of chain governance on chain performance among the chain members.

Design/methodology/approach

The survey was conducted in a triadic context with 345 chain members (115 dairy farmers, 115 dairy cooperative managers, and 115 processors) of the dairy sector in Uganda. Data collection was performed through simple random sampling by survey questionnaires with the chain executives. SEM was used for data analysis.

Findings

The results revealed several chain governance structures (spot market, relational, contractual and mini integration) confirmed the hypothesized correlations on chain performance at different chain levels. The authors found a positive influence of relational governance on chain performance for all the chain members; however, the effect is stronger at the first supplier chain level.

Originality/value

This triadic chain approach makes an original contribution to the chain governance structures and chain performance literature in the supply chain context. Studies analyzing all aspects of chain governance structure and chain performance at three chain levels are limited.

Keywords

Acknowledgements

VLIR-IUC-MMU program provided the funding for this study as a PhD dissertation grant for the first author, who is a doctoral student at Ghent University Belgium. The authors also acknowledge the financial support of the Hungarian Scientific Research Fund (OTKA, PD 116226) “Supply chain and network performance and relationships in the agribusiness sector.” Lastly, the authors appreciate the Editor and the two anonymous reviewers for insightful comments which significantly improved the manuscript.

Citation

Kataike, J., Molnar, A., De Steur, H. and Gellynck, X. (2019), "Examining the relationship between chain governance structures and chain performance: An empirical evidence of the dairy sector", British Food Journal, Vol. 121 No. 8, pp. 1850-1870. https://doi.org/10.1108/BFJ-12-2018-0808

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited