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This paper aims to analyse the effect of mandatory corporate social responsibility expenditure (CSRE) on the performance of food and agribusiness firms in India.
Abstract
Purpose
This paper aims to analyse the effect of mandatory corporate social responsibility expenditure (CSRE) on the performance of food and agribusiness firms in India.
Design/methodology/approach
This study is based on the firm-level data collected from the Prowess database of the Centre for Monitoring Indian Economy in the year 2019. The data on key characteristics, business performance and CSRE has been compiled from 362 food and agribusiness firms. The descriptive statistics, t-test for equality of means and Spearman correlation analysis have been undertaken to understand the relationship between mandatory CSRE and firm performance across food and agribusiness sectors.
Findings
Out of 362 food and agribusiness firms, 52.2% have reported expenditure in the implementation of social initiatives under their corporate social responsibility. The results show a significant difference in the firm’s characteristics vis-à-vis with and without CSRE. Further, the findings highlight a positive and significant correlation and causal impact of corporate social responsibility (CSR) on return on sales, return on assets and profit after tax.
Practical implications
The study provides insights for implementing strategic CSR in food and agribusiness firms and gives an adequate justification for incurring CSRE.
Originality/value
This paper increases the understanding of CSR in the food and agribusiness sector. Besides, provisioning mandatory CSR seems to be a beneficial proposition for enhancing a firm’s performance.
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Arsalan Najmi, Waqar Ahmed and Samia Jahangir
This study aims to consider factors that play an important role in adopting the halal food standard (HFS) among food manufacturers in Pakistan and to investigate the role of the…
Abstract
Purpose
This study aims to consider factors that play an important role in adopting the halal food standard (HFS) among food manufacturers in Pakistan and to investigate the role of the traceability system in the compliance of the halal assurance system (HAS).
Design/methodology/approach
Present study included data from a survey by 134 professionals/food technologists from the food industry, and partial least square-structural equation modeling was applied.
Findings
The results indicate that consumer pressure, industry competition, marketing functions, operational improvement and the organization’s commitment have a significant impact on HFS adoption, while government regulations have an insignificant impact. The results also indicate that the HFS’s adoption and lack of a traceability system significantly impact HAS.
Research limitations/implications
The current study’s findings are inconclusive. Hence, future researchers are suggested to further explore the studied phenomena, especially in other research settings.
Practical implications
For policymakers, the findings of this study offer valuable information as it not only benefits the industry but will also assist in providing better and safer halal food products to consumers.
Originality/value
This study highlights the importance of the adoption of HFS and compliance with HAS in a scenario where demand for Halal is increasing globally. Moreover, the findings of this study offer valuable information in motivating firms to implement HFS.
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Basil Ajer, Lucy Ngare and Ibrahim Macharia
This study assessed the relationship among market orientation, innovation attitude and firm's innovativeness in the context of agri-food micro, small and medium enterprises…
Abstract
Purpose
This study assessed the relationship among market orientation, innovation attitude and firm's innovativeness in the context of agri-food micro, small and medium enterprises (MSMEs) in a developing country context.
Design/methodology/approach
Cross-sectional primary data was collected using structured questionnaires from a sample of 521 agro-food MSMEs in Uganda. Data was analyzed using exploratory factor analysis and structural equation modeling.
Findings
Results showed that interfunctional coordination influences both firm innovativeness and innovation attitude. On the other hand, competitor orientation does not influence innovation attitude, but negatively influences firm innovativeness, while customer orientation does not influence firm innovativeness, but positively influences innovation attitude. Results also confirm the positive influence of innovation attitude on firm innovativeness. These relationships vary by location, size of MSME, type of MSME.
Research limitations/implications
The findings of study this imply that agri-food firms should focus on improving the internal coordination among departments so as to improve both attitude toward innovation and firm's innovativeness.
Originality/value
This study investigates market orientation and innovation in agro-food MSMEs in a development country.
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An Thi Binh Duong, Teck Lee Yap, Vu Minh Ngo and Huy Truong Quang
The growing awareness of climate risks associated with food safety issues has drawn the attention of stakeholders urging the food industry to carry out a sustainable food safety…
Abstract
Purpose
The growing awareness of climate risks associated with food safety issues has drawn the attention of stakeholders urging the food industry to carry out a sustainable food safety management system (FSMS). This study aims to investigate whether the critical success factors (CSFs) of sustainable FSMS can contribute to achieving climate neutrality, and how the adoption of FSMS 4.0 supported by the Industry Revolution 4.0 (IR 4.0) technologies moderates the impact of the CSFs on achieving climate neutrality.
Design/methodology/approach
Survey data from 255 food production firms in China and Vietnam were utilised for the empirical analysis. The research hypotheses were examined using structural equations modelling (SEM) with route analysis and bootstrapping techniques.
Findings
The results show that top management support, human resource management, infrastructure and integration appear as the significant CSFs that directly impact food production firms in achieving climate neutrality. Moreover, the results demonstrate that the adoption of FSMS 4.0 integrated with the three components (ecosystems, quality standards and robustness) significantly moderates the impact of the CSFs on achieving climate neutrality with lower inputs in human resources, infrastructure investment, integration and external assistance, and higher inputs in strengthening food safety administration.
Originality/value
This study provides empirical findings that fill the research gap in understanding the relationship between climate neutrality and the CSFs of sustainable FSMS while considering the moderating effects of the FSMS 4.0 components. The results provide theoretical and practical insights into how the food production sector can utilise IR 4.0 to attain sustainable FSMS for achieving climate neutrality.
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Wei Yang, Waranan Tantiwat, Alan Renwick, Cesar Revoredo-Giha and Le Wang
This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food…
Abstract
Purpose
This paper aims to empirically investigate the role of product positioning in the launch of food and drink products using a large dataset of new product development by food companies in Australia (AU) and New Zealand (NZ). As such, positioning through credence attribute claims can be associated with product launch strategies, including brand-new products, expansion of product ranges, new packaging and relaunch, as a response to market demand.
Design/methodology/approach
Text analysis was used to investigate the descriptions of food claims using Structured Query Language, providing a word list of food claims and further filtered and categorised into groups of claims. Multinomial regression models were then employed to analyse the association between product launch strategies and food claims adopted by firms.
Findings
The results of this paper provide evidence that positioning via food claims play an important role in product launch strategies in both AU and NZ. Types of food claims matter differently to firms' product launch decisions in the two markets. The “green” and “ethical” attributes are found to be associated with new launches in NZ but not in AU. Claims that are seen as most important for consumers are more likely to be engendered for the more costly launch approach.
Originality/value
This study is amongst the first studies that addresses the role of positioning in product launch strategies of food companies. The results and findings provide insights into the different prevailing credence attributes from the firm side and help policymakers to regulate the delivery of information about credence attributes to consumers.
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Amine Belhadi, Sachin Kamble, Nachiappan Subramanian, Rajesh Kumar Singh and Mani Venkatesh
The agricultural supply chain is susceptible to disruptive geopolitical events. Therefore, agri-food firms must devise robust resilience strategies to hasten recovery and mitigate…
Abstract
Purpose
The agricultural supply chain is susceptible to disruptive geopolitical events. Therefore, agri-food firms must devise robust resilience strategies to hasten recovery and mitigate global food security effects. Hence, the central aim of this paper is to investigate how supply chains could leverage digital technologies to design resilience strategies to manage uncertainty stemming from the external environment disrupted by a geopolitical event. The context of the study is the African agri-food supply chain during the Russian invasion of Ukraine.
Design/methodology/approach
The authors employ strategic contingency and dynamic capabilities theory arguments to explore the scenario and conditions under which African agri-food firms could leverage digital technologies to formulate contingency strategies and devise mitigation countermeasures. Then, the authors used a multi-case-study analysis of 14 African firms of different sizes and tiers within three main agri-food sectors (i.e. livestock farming, food-crop and fisheries-aquaculture) to explore, interpret and present data and their findings.
Findings
Downstream firms (wholesalers and retailers) of the African agri-food supply chain are found to extensively use digital seizing and transforming capabilities to formulate worst-case assumptions amid geopolitical disruption, followed by proactive mitigation actions. These capabilities are mainly supported by advanced technologies such as blockchain and additive manufacturing. On the other hand, smaller upstream partners (SMEs, cooperatives and smallholders) are found to leverage less advanced technologies, such as mobile apps and cloud-based data analytics, to develop sensing capabilities necessary to formulate a “wait-and-see” strategy, allowing them to reduce perceptions of heightened supply chain uncertainty and take mainly reactive mitigation strategies. Finally, the authors integrate their findings into a conceptual framework that advances the research agenda on managing supply chain uncertainty in vulnerable areas.
Originality/value
This study is the first that sought to understand the contextual conditions (supply chain characteristics and firm characteristics) under which companies in the African agri-food supply chain could leverage digital technologies to manage uncertainty. The study advances contingency and dynamic capability theories by providing a new way of interacting in one specific context. In practice, this study assists managers in developing suitable strategies to manage uncertainty during geopolitical disruptions.
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Ryan Atkins, Kim Deranek and Robert Sroufe
Research and interest in food loss and waste (FLW) have increased, but barriers stand in the way of firms engaging in food recovery efforts. The purpose of this study is to gain a…
Abstract
Purpose
Research and interest in food loss and waste (FLW) have increased, but barriers stand in the way of firms engaging in food recovery efforts. The purpose of this study is to gain a better understanding of how firms overcome these barriers.
Design/methodology/approach
This study followed a qualitative, field-study-based research design in which 23 decision-makers at food-based organizations were interviewed. Quotes were extracted and categorized to develop a conceptual model of the food recovery process.
Findings
The conceptual model that evolved helps to explain decision-making related to FLW across the following dimensions: barriers to food recovery, incentives to overcome the barriers, internal processes for engaging in food recovery and external relationships influencing internal incentives and processes. In addition, the barriers and incentives were divided into operational and managerial issues.
Originality/value
Building on the barriers to food recovery in prior research, we explored the processes that help firms overcome these barriers. The model developed in this study is an important step toward addressing these processes and relationships. It can serve as a foundation for a variety of future studies of food recovery.
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Nurul Hudani Md Nawi, Puteri Hayati Megat Ahmad, Habibie Ibrahim and Norazah Mohd Suki
The purpose of this study is to examine the effect of knowledge and attitude on firms’ commitment to Halal standard practices in a developing nation’s food sector. Additionally…
Abstract
Purpose
The purpose of this study is to examine the effect of knowledge and attitude on firms’ commitment to Halal standard practices in a developing nation’s food sector. Additionally, the moderating effect of gender on this association is explored.
Design/methodology/approach
The partial least squares-structural equation modelling (PLS-SEM) technique is used to analyse the results of a self-administered questionnaire completed by 200 internal Halal executive officers of multinational corporations and small and medium enterprises in a developing nation’s food sector.
Findings
The empirical findings reflect the significant role of attitude in influencing firms’ commitment to Halal standard compliance in the food sector and thereby contribute towards improving organisational performance. In more detail, male respondents were more likely than female respondents to have a favourable attitude toward Halal standards in the food industry. Additionally, a positive attitude can influence how employees are judged on their adherence to Halal standard processes. This encouraging outcome is the result of joint efforts by all government agencies, statutory bodies and private organisations involved in Halal practices.
Practical implications
Halal food producers should engender greater commitment to Halal standard practices within the buyer–supplier relationship due to the crucial nature of Halal concerns in food production. They should place a premium on strategic planning to safeguard the integrity of Halal food for consumption.
Originality/value
This study considerably advances the existing body of knowledge by applying the consumer decision model to explain the relationships between knowledge, attitude and firms’ commitment to Halal standard practices in the food industry of a developing nation, with gender serving as a moderating variable. The empirical findings addressed the research gap by offering noteworthy insight into a subject that has received minimal attention in prior studies.
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Mehrgan Malekpour, Federica Caboni, Mohsen Nikzadask and Vincenzo Basile
This paper aims to identify the combination of innovation determinants driving the creation of innovative products amongst market leaders and market followers in food and beverage…
Abstract
Purpose
This paper aims to identify the combination of innovation determinants driving the creation of innovative products amongst market leaders and market followers in food and beverage (F&B) firms.
Design/methodology/approach
This research is based on the case study methodology by using two types of data sources: (1) semi-structured interviews with industry experts and (2) in-depth interviews with managers. In addition, a questionnaire adapted from prior research was used to consider market and firm types.
Findings
Suggesting an integrated theoretical framework based on firm-based factors and market-based factors, this study identified a combination of determinants significantly impacting innovative products in the market. Specifically, these determinants are competition intensity and innovation capability (a combination of research and development (R&D) investment and marketing capabilities). The study also examined how these determinants vary depending on whether the firms are market leaders or market followers.
Practical implications
This research provides practical insights for managers working in the F&B industry by using case studies and exploring the determinants of developing innovative products. In doing so, suitable strategies can be selected according to the market and firm situations.
Originality/value
The originality of the study is shown by focussing on how different combinations of market and firm factors could be applied in creating successful innovative products in the food sector.
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The purpose of this paper, applying concepts in the plant-based food sector, is a focus on the competitive rival trap for startup firms, with their initial advantage for…
Abstract
Purpose
The purpose of this paper, applying concepts in the plant-based food sector, is a focus on the competitive rival trap for startup firms, with their initial advantage for under-served market segments, only to be overtaken by scale, speed, and brands of incumbent brand firms. As a case study of industry transformation, the food production sector illustrates how organizational innovation brings new forms of rivalry, from the farm gate to the kitchen plate. As a result, startups face a rivalry trap, if unable to scale quickly, as incumbents reframe their strategic response with startup acquisitions, corporate incubators or alliance partnerships consumer demand.
Design/methodology/approach
This paper outlines the features of precision agriculture, a new paradigm for agriculture and food production, requiring new competences and skillsets in the protein revolution, including issues like virus, bacteria and the molecular structure of food groups, animal breeding and veterinary medicine. Plant-based foods is used as a case study for startups and the rivalry trap.
Findings
The emergence of plant-based foods is a case study of market opportunity and creative destruction, where the potential market varies from $25bn to $72bn, and growing faster in the dairy sector. However, food incumbents bring new strategic responses and a rivalry trap, where startups must gain scale quickly in capabilities, talent and marketing prowess, often exploiting demand in market niches unimpeded by incumbent rivals.
Research limitations/implications
Startups in biological sciences face massive challenges to increase scale and scope, even with unique intellectual property.
Practical implications
Startup firms need multidisciplinary management teams with a global outlook.
Social implications
Plant-based foods form part of the protein revolution but face challenges of scale, cost competitiveness and taste, despite advantages for climate mitigation.
Originality/value
The impact of technological and science applications has blurred the traditional concept of industry boundary, with huge variations in the intangible knowledge component in their core activities and capabilities. Underlying variations imply that not all industries have similar supply demand conditions, with variations in input costs, capital intensity and innovation needs, with strategic implications for the rivalry trap.
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