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Agri-food supply chain concentration and financial growth: configuration and congruence approaches

Jiawei Xu (College of Economics and Management, China Agricultural University, Beijing, China)
Baofeng Zhang (College of Economics and Management, China Agricultural University, Beijing, China)
Jianjun Lu (College of Economics and Management, China Agricultural University, Beijing, China)
Yubing Yu (School of Logistics and E-commerce, Zhejiang Wanli University, Ningbo, China)
Haidong Chen (School of Foreign Languages, Jiangxi University of Finance and Economics, Nanchang, China)
Jie Zhou (College of Business, Jiangnan University, Wuxi, China)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 13 September 2024

Issue publication date: 28 October 2024

116

Abstract

Purpose

The importance of the agri-food supply chain in both food production and distribution has made the issue of its development a critical concern. Based on configuration theory and congruence theory, this research investigates the complex impact of supply chain concentration on financial growth in agri-food supply chains.

Design/methodology/approach

The cluster analysis and response surface methodology are employed to analyse the data collected from 207 Chinese agri-food companies from 2010 to 2022.

Findings

The results indicate that different combination patterns of supply chain concentration can lead to different levels of financial growth. We discover that congruent supplier and customer concentration is beneficial for companies’ financial growth. This impact is more pronounced when the company is in the agricultural production stage of agri-food supply chains. Post-hoc analysis indicates that there exists an inverted U-shaped relationship between the overall levels of supply chain concentration and financial growth.

Practical implications

Our research uncovers the complex interplay between supply chain base and financial outcomes, thereby revealing significant ramifications for agri-food supply chain managers to optimise their strategies for exceptional financial growth.

Originality/value

This study proposes a combined approach of cluster analysis and response surface analysis for analysing configuration issues in supply chain management.

Keywords

Acknowledgements

The authors would like to thank China Agricultural University and China Stock Market and Accounting Research Database for the help. This work was supported by the National Natural Science Foundation of China (grant number: 71901010) and Major Humanities and Social Sciences Research Projects in Zhejiang higher education institutions (grant number: 2023GH072).

Citation

Xu, J., Zhang, B., Lu, J., Yu, Y., Chen, H. and Zhou, J. (2024), "Agri-food supply chain concentration and financial growth: configuration and congruence approaches", International Journal of Physical Distribution & Logistics Management, Vol. 54 No. 9, pp. 936-966. https://doi.org/10.1108/IJPDLM-01-2024-0038

Publisher

:

Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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