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Article
Publication date: 25 August 2020

The value of supply chain integration in the Latin American agri-food industry: trust, commitment and performance outcomes

Manuel Jesus Ramirez, Ivonne Eliany Roman, Edgar Ramos and Andrea Stefano Patrucco

This paper aims to explore the antecedents and performance outcomes of supply chain integration in the agri-food industry in Latin America, a context that the literature…

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Abstract

Purpose

This paper aims to explore the antecedents and performance outcomes of supply chain integration in the agri-food industry in Latin America, a context that the literature on supply chain management has not extensively addressed. The quinoa supply chain, an industry that has encountered a boost in market demand in the past year, is selected as the unit of analysis. Supply chain integration dynamics are analyzed to provide recommendations about integration strategies and benefits in the agricultural sector.

Design/methodology/approach

A conceptual model was designed in this study, which includes the drivers (i.e. trust and commitment) and outcomes (i.e. operational and economic performance) of supply chain integration. The relationships were verified through a unique survey, the data of which were collected from 79 respondents operating at different levels of the Peruvian quinoa supply chain (i.e. suppliers, producers and customers). The proposed hypotheses were tested through the partial least squares (PLS) regression.

Findings

The results underscore the relevance of trust and commitment as enablers of supply chain integration initiatives in the agri-food industry. These factors are particularly essential for involving the farmers who are the most upstream actors in the supply chain and characterized by unstructured organizations. A high level of integration in these types of supply chain enhances the capacity to improve operational performance, which in turns positively affects the main economic indicators.

Originality/value

This study contributes to the discussion of supply chain integration in the agri-food industry, which remains unexplored thus far. It relies on a multitier collection of responses, which is extended to all the levels of the quinoa supply chain, thereby providing the study with a unique depth of analysis. Furthermore, this work contributes to the ongoing discourse on the performance impact of supply chain integration, which several SCM scholars have recently questioned.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/IJLM-02-2020-0097
ISSN: 0957-4093

Keywords

  • Agri-food supply chain management
  • Supply chain integration
  • Supply chain performance

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