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1 – 9 of 9Pedro Lafargue, Michael Rogerson, Glenn C. Parry and Joel Allainguillaume
This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from…
Abstract
Purpose
This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from retail product back to farm.
Design/methodology/approach
This research uses qualitative data collection, including fieldwork at cocoa farms and chocolate manufacturers in Ecuador and the Netherlands and semi-structured interviews with industry professionals to identify challenges and create a supply chain map from cocoa plant to retailer, validated by area experts. A library of biomarkers is created using DNA collected from fieldwork and the International Cocoa Quarantine Centre, holders of cocoa varieties from known locations around the world. Matching sample biomarkers with those in the library enables identification of origins of cocoa used in a product, even when it comes from multiple different sources and has been processed.
Findings
Supply chain mapping and interviews identify areas of the cocoa supply chain that lack the visibility required for management to guarantee sustainability and quality. A decoupling point, where smaller farms/traders’ goods are combined to create larger economic units, obscures product origins and limits visibility. These factors underpin a potential boundary condition to institutional theory in the industry’s fatalism to environmental and human abuses in the face of rising institutional pressures. Biomarkers reliably identify product origin, including specific farms and (fermentation) processing locations, providing visibility and facilitating control and trust when purchasing cocoa.
Research limitations/implications
The biomarker “meta-barcoding” of cocoa beans used in chocolate manufacturing accurately identifies the farm, production facility or cooperative, where a cocoa product came from. A controlled data set of biomarkers of registered locations is required for audit to link chocolate products to origin.
Practical implications
Where biomarkers can be produced from organic products, they offer a method for closing visibility gaps, enabling responsible sourcing. Labels (QR codes, barcodes, etc.) can be swapped and products tampered with, but biological markers reduce reliance on physical tags, diminishing the potential for fraud. Biomarkers identify product composition, pinpointing specific farm(s) of origin for cocoa in chocolate, allowing targeted audits of suppliers and identifying if cocoa of unknown origin is present. Labour and environmental abuses exist in many supply chains and enabling upstream visibility may help firms address these challenges.
Social implications
By describing a method for firms in cocoa supply chains to scientifically track their cocoa back to the farm level, the research shows that organizations can conduct social audits for child labour and environmental abuses at specific farms proven to be in their supply chains. This provides a method for delivering supply chain visibility (SCV) for firms serious about tackling such problems.
Originality/value
This paper provides one of the very first examples of biomarkers for agricultural SCV. An in-depth study of stakeholders from the cocoa and chocolate industry elucidates problematic areas in cocoa supply chains. Biomarkers provide a unique biological product identifier. Biomarkers can support efforts to address environmental and social sustainability issues such as child labour, modern slavery and deforestation by providing visibility into previously hidden areas of the supply chain.
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Juri Matinheikki, Katri Kauppi, Alistair Brandon–Jones and Erik M. van Raaij
Contemporary supply chain relationships inherently rely on delegation of work between organizations and, thus, are subject to agency problems for which a wide range of governance…
Abstract
Purpose
Contemporary supply chain relationships inherently rely on delegation of work between organizations and, thus, are subject to agency problems for which a wide range of governance mechanisms exist. This review of agency theory (AT), across four distinct fields, explains the connection between governance mechanisms and supply chain relationship types.
Design/methodology/approach
The study uses a systematic literature review (SLR) of articles using AT in a supply chain context from the operations and supply chain management, general management, marketing, and economics fields.
Findings
The authors categorize the governance mechanisms identified to create a typology of agency relationships in supply chains.
Research limitations/implications
The developed typology provides parsimonious theory on different forms of supply chain agency relationships and takes a step towards a “supply chain-oriented agency theory” explaining and predicting relationship types and governance in supply chains. Furthermore, a future research agenda calls for more accurate measuring of agency costs, to examine residual gains alongside residual losses, to take a dual-sided perspective of agency relations and to adopt AT to examine more complex supply networks.
Practical implications
The review provides a menu of governance mechanisms and describes situations under which these mechanisms could be deployed to guide managers when developing their supply chain relationships.
Originality/value
The first review to combine and elaborate views from four major disciplines using AT as a lens to supply chain relationships. Expanding the traditional set of governance mechanisms provides academics and practitioners with a bigger “menu” of options to consider.
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Yongqin Wang and Xin Gao
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Abstract
Purpose
This paper studies the political economy of the endogenous urban–rural divide in two dimensions: labor market and provision of public goods.
Design/methodology/approach
This paper gives a dual-sector model endogenously depending on the consumption of public goods (club goods), the number of rural–urban migrants and the tax rate (transfer payments).
Findings
According to the research findings in this paper, the constraints on the participation of rural residents portray the rural residents' bargaining power, and in the game between the urban elites and the rural residents, tax rates depend on the preferences of the urban elites and the constraints urban elites and the rural residents jointly face. Therefore, the urban elites have to set tax rates deviating from the most preferred ones. The model in this paper can explain a series of empirical findings and yield new theoretical findings for empirical testing.
Originality/value
Significantly, the paper finds that the increase in agricultural productivity will lead to industrialization, accompanied by the disintegration of the dual-sector model. However, though the increase in industrial productivity can accelerate industrialization, it will further expand the urban–rural divide.
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