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Article
Publication date: 4 December 2017

Aries Susanty, Arfan Bakhtiar, Ferry Jie and Mustofa Muthi

The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty…

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Abstract

Purpose

The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance.

Design/methodology/approach

Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis.

Findings

The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance.

Research limitations/implications

The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative.

Practical implications

It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product.

Social implications

The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer.

Originality/value

Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

Details

British Food Journal, vol. 119 no. 12
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 10 August 2015

Jan Falkowski

Much has been said about the nature of the agro-food supply chain. Yet, the consequences of reforming supply chain institutions have less often been studied, especially…

Abstract

Purpose

Much has been said about the nature of the agro-food supply chain. Yet, the consequences of reforming supply chain institutions have less often been studied, especially from an empirical perspective. The purpose of this paper is to examine the economic consequences of a radical reorganisation of the system of exchange in the agro-food sector in Central and Eastern Europe, during the process of transition from a centrally planned economy to a market economy. By considering a historical example from the dairy sector in Poland, the author provides evidence that the disorganisation of vertical linkages between upstream and downstream producers can be very costly. The most conservative estimates suggest that the dislocation of inter-firm relationships accounted for approximately 20 per cent of the drop in milk production observed in the early-transition phase in question.

Design/methodology/approach

The empirical approach is based on econometric analyses. The empirical strategy the author adopts is similar in spirit to a standard difference-in-differences method. More specifically, to study the outcomes of the disruptions in supply chain the author adopts an event-study approach. Thus, the author compares the relative changes in milk production in the post-treatment period relative to pre-treatment period between regions more or less exposed to disruptions to supply chain.

Findings

The most conservative estimates suggest that the dislocation to inter-firm relationships accounted for approximately 20 per cent of the fall in milk production observed in the early-transition phase.

Originality/value

Two key features distinguish the approach from the previous studies. First, through the use of a more direct measure of problems affecting vertical relationships between farmers and processors the author has access to higher quality proxies for the supply chain disruptions. To this end, the author focuses on the dislocation to milk procurement system that arose in the very early phase of transition, manifesting itself in the break up of vertical linkages between farmers and dairy industry. Second, in contrast to the existing studies which exploit variation between transition countries, the author focus on within-country evidence. To best of the author knowledge, this paper is the first to investigate agricultural output during transition using within country variation.

Details

Journal of Organizational Change Management, vol. 28 no. 5
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 4 August 2020

Jane Glover

The purpose of this paper is to explore the dark side of supermarket-driven sustainable dairy supply chains. This paper raises questions about the unintended consequences…

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Abstract

Purpose

The purpose of this paper is to explore the dark side of supermarket-driven sustainable dairy supply chains. This paper raises questions about the unintended consequences of implementing sustainable supply chain management in the dairy food supply chain. It critically questions whether unintended consequences were actually, anticipated, as the course of action taken by retailers reinforces the dominant profitability discourse.

Design/methodology/approach

Through a critical management studies approach, this paper challenges the dominant discourse to shed light on the social consequences of the win-win sustainable supply chain management in the dairy food supply chain. The focus of this paper is on the experiences of farmers, taking their viewpoint of sustainable supply chains rather than taking the perspective of the multinationals who have traditionally been the focus of supply chain management research (e.g. McCarthy et al., 2018; Quarshie et al., 2016).

Findings

The study illuminates how retailers have bolstered their dominant position through using sustainable supply chains to exert further control over their suppliers. The management of sustainable supply chains has been a further catalyst in economically and socially dividing rural communities and creating tensions between dairy farmers.

Originality/value

This paper uses an ethnographic study to provide in-depth stories of the changes that took place within one farming community. It exposes the hidden ways in which the introduction of a sustainable dairy supply chain has created social and economic division, further reducing the collective power of dairy farmers through creating a dual supply chain.

Details

International Journal of Operations & Production Management, vol. 40 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 5 October 2015

Jan Falkowski

Recent literature has considerably improved our understanding of vertical relations in the food chain. One area which has received relatively little attention however…

Abstract

Purpose

Recent literature has considerably improved our understanding of vertical relations in the food chain. One area which has received relatively little attention however relates to the resilience of an agro-food supply chain, that is its ability to face and, if needed, to recover after a major disruption. The purpose of this paper is to study what factors, including characteristics of vertical links between upstream and downstream sectors, may make farmer-processor relationships more or less resilient to adverse shocks.

Design/methodology/approach

To do so, the author uses a unique region-level data set on disruptions to dairy supply chain in Poland during the transition from a centrally planned economy to a market economy. More specifically, using between-region variation, the author investigates why in some regions supply chain disruptions, measured as the breakdown of relationships between farmers and processing industry, were smaller than in other regions.

Findings

The findings suggest that the supply chain which the author analysed was less resilient to crisis, i.e. the author observed larger disruptions to supply relations, when the supply base was more fragmented and when farmers had better outside options to market their produce via direct sales to consumers. In addition, dairy supply chain in Poland seemed to be less resilient in regions with larger share of the state-owned land.

Research limitations/implications

The results come with several caveats. First, the empirical evidence comes from Poland during the specific period and thus it may not be easily generalised. Second, the results are based on historical correlations. Therefore, although they are robust across various specifications which the author estimates, they may not establish causal relationship due to some omitted variables or potential endogeneity issue. Finally, what the author uses here are region-level data. One may argue therefore that farm-level data would give more fine-tuned focus for testing impacts and theories regarding supply chain resilience.

Originality/value

To the best of the author’s knowledge, this paper is the first to provide some evidence on agro-food supply chain from this perspective.

Details

British Food Journal, vol. 117 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 20 February 2007

Robert D. Tamilia and Sylvain Charlebois

Marketing boards are an integral part of the farm economy in Canada. Their purposes have been debated for decades but seldom from a marketing perspective. Such an approach…

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Abstract

Purpose

Marketing boards are an integral part of the farm economy in Canada. Their purposes have been debated for decades but seldom from a marketing perspective. Such an approach makes for an interesting way to study them. The purpose of this paper is to assess the pros and cons of marketing boards, suggesting how they can be made more responsive to market forces.

Design/methodology/approach

The paper positions the need for Canada to bring agricultural market reforms. The wave toward freer access to world markets makes the study of supply management that more interesting and relevant in the twenty‐first century. A brief history of marketing boards is presented, followed by a discussion of their economic, social and constitutional impacts on Canadian society. Dairy supply management issues are discussed because they serve as the basis for comparative analysis, given that dairy trade liberation has been the most successful. The impact of marketing boards on consumers is well documented.

Findings

The research points out that marketing boards lack managerial savvy to make them more efficient and responsive to market changes. Logistical and supply chain management approaches seem to be lacking. A failure to respond to markets has resulted in lost market opportunities, both domestically and abroad. The quota values, the legal and constitutional powers of Canadian marketing boards and the interprovincial trade barriers, among other issues, have stifled entrepreneurship and innovation, all with rising prices to consumers. Trade liberation will not be easy to implement even if it is urgently needed.

Practical implications

Some of the suggested market reforms presented in the paper are bound to have repercussions not only on farmers and their current ways of doing business but on Canadian society as well.

Originality/value

Few studies on marketing boards have been done from a marketing perspective rather than an agricultural economic one. It is the most current review of Canadian marketing boards. Marketing studies are needed to know more about how such boards are managed and function. They need to be more accountable. The recommended managerial studies on boards make the paper unique. While trade liberation is highly recommended for milk and dairy boards to meet world pressure, the paper does not call for their elimination.

Details

British Food Journal, vol. 109 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 20 October 2015

Mohammad Shamsuddoha

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from…

Abstract

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Details

Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics
Type: Book
ISBN: 978-1-78560-707-3

Keywords

Article
Publication date: 5 July 2011

Amos Gyau, Achim Spiller and Christian Wocken

The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies

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Abstract

Purpose

The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies and their milk suppliers.

Design/methodology/approach

The paper reports the results of field study involving 209 farmers in Lower Saxony and the northern section of North Rhine‐Westphalia regions in northwest Germany. These regions are the most important milk production centres in Germany.

Findings

The results indicate that, whereas behavioural factors, specifically relationship management practices and price satisfaction, have a positive influence on the quality of the business relationship between the farmers and the dairies, the actual price levels have no influence.

Practical implications

Actual prices paid to the farmers is not the most important factor which influences the quality of their relationship with the dairies but rather behavioural norms such as milk price satisfaction and relational norms. Dairies are advised to enhance price perception through price negotiations and transparency in order to facilitate quality relationship instead of through higher price payment alone.

Originality/value

This study is the first to integrate and compare the actual prices and behavioural variables to determine their relative importance and influence on relationship quality.

Details

British Food Journal, vol. 113 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 28 April 2014

Sahara Sahara and Amos Gyau

The aim of this paper is to examine the nature of contractual relationships between farmers and buyers in the traditional and supermarket channels, and to explore…

Abstract

Purpose

The aim of this paper is to examine the nature of contractual relationships between farmers and buyers in the traditional and supermarket channels, and to explore determinants of farmers' commitment in the two channels.

Design/methodology/approach

The paper reports the results of a field study of 602 chili farmers in the largest chilli production area in Indonesia, West Java Province. The contractual arrangements were analyzed using descriptive statistics, while determinants of farmers' commitment were examined using factor analysis and Ordinary Least square (OLS) regression.

Findings

The contractual arrangements between farmers and traders in both traditional and supermarket channels are characterized by verbal agreements. Price is the main aspect of the contract in the traditional channel, while grading aspects are the most important aspects in the supermarket channel. Trust and satisfaction have significant influence on farmers' commitment in the two channels, while the actual price has no influence.

Practical implications

To improve farmers' commitment, traders should not only focus on absolute price, but also on building trust and satisfaction. Trust can be improved by providing payments on time and following through with their promises. Satisfaction can be improved by offering fair prices for farmers' products and providing quicker responses in handling farmers' concerns.

Originality/value

This study compares the trade relationships between traditional and supermarket channels. It incorporates actual price and behaviour variables in the analysis of farmers' commitment.

Details

British Food Journal, vol. 116 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 20 January 2012

Jeremy Franks and Sarah Hauser

When the UK's Milk Marketing Boards (MMB) were disbanded in 1994 the formal link between the farm gate milk price with the milk's end‐use was broken. The purpose of this…

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Abstract

Purpose

When the UK's Milk Marketing Boards (MMB) were disbanded in 1994 the formal link between the farm gate milk price with the milk's end‐use was broken. The purpose of this paper is to examine whether milk prices fell to their “marginal value in the least remunerative use” or whether “the market had put in place some other mechanism for raising the price upwards”.

Design/methodology/approach

An on‐line survey of UK milk producers, open to all, conducted in the summer of 2008, explored farmers' knowledge of their milk contract, the use of their milk, and the reasons for choosing their current milk buyer.

Findings

A liquid milk price premium (of 1.06ppl.) was earned by farmers who: sold on liquid milk contracts to processors, rather than to one of the three large farmer‐owned co‐operatives; and who recently switched milk buyer. Switching incurred high transaction costs, additional uncertainty, and went against commitments to the co‐operative ideal.

Practical implications

Publication of differences between a buyer's milk price and a benchmark related to how the milk is processed, (a D‐score), cumulative difference values (D_C), 12 and 24 monthly moving average difference measures (D_MA12 and D_MA24 respectively) alongside milk buyers' milk price would improved supply chain transparency, and lower farmers' switching costs. It would also help farmers to treat their milk's final markets, rather than their milk buyer, as their customers.

Originality/value

The paper puts forward practical suggestions that have never been discussed by the UK supply chain, even though they would have direct and indirect benefits to the actors involved.

Details

British Food Journal, vol. 114 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 29 November 2018

Chaturong Napathorn

The purpose of this paper is to contribute to the social enterprises and human resource management (HRM) literatures by examining how institutional and cultural contexts…

Abstract

Purpose

The purpose of this paper is to contribute to the social enterprises and human resource management (HRM) literatures by examining how institutional and cultural contexts influence human resources (HR) practices, i.e., recruitment practices (specifically, recruitment channels) and employee relations (ER) practices that are adopted in social enterprises in the developing country of Thailand.

Design/methodology/approach

This paper applies an embedded cross-case analysis of four social enterprises in Thailand across a variety of industries. The case study evidence in this paper draws on semi-structured interviews with each social enterprise’s representatives; field visits to each social enterprise in Bangkok and in other provinces in Thailand; and a review of archival documents and web-based reports and resources. This paper uses thematic analysis to pinpoint, examine and record the patterns or themes found in the data.

Findings

Based on these four case studies, this paper proposes that the deficiencies in the Thai skill formation system, especially skill shortages, are associated with the adoption of alternative or substream recruitment channels among social enterprises. Additionally, the weak and highly fragmented ER institution and the cultural context that favor conflict avoidance and unassertiveness among workers within the workplace are associated with the adoption of a paternalistic ER practice in these enterprises.

Research limitations/implications

This paper has only focused on the role of national skill formation system, ER system, and the cultural context that favor conflict avoidance and unassertiveness among workers within the workplace. Future research may explore how other institutional and cultural domains influence the adoption of HR practices in these enterprises in the context of emerging market economies. Additionally, because this research is based on the case studies of four social enterprises in a variety of industries in Thailand, the findings of this paper may not be generalizable to all social enterprises across countries. Another limitation of this research is that it did not include social enterprises in several other industries, including the entertainment and media industry and the printing and publishing industry, and it does not include other forms of social enterprises, such as community-led social ventures. Future research may explore how institutional and cultural contexts influence HR practices adopted in social enterprises in other industries or in other types of social enterprises. Moreover, quantitative studies using large samples of social enterprises across industries might be useful in deepening our understanding of a topic that is significant from the perspective of both social enterprises and HRM.

Practical implications

This paper provides practical implications for HR professionals, founders and top managers of social enterprises not only in Thailand but also in other countries that face the problem of a skill shortage in the labor market.

Social implications

This paper provides policy implications for the government of Thailand and the governments of several other emerging market economies in which the skill shortage is particularly severe. These governments should focus on solving this problem to alleviate severe competition among several types of organizations in the labor market. Furthermore, these governments should foster the implementation of a partnership model for employee–management relationships within the workplace. In this model, employees and management perceive each other as partners rather than enemies to sustain win–win solutions to any problems or disputes that may occur.

Originality/value

This paper aims to fill the gap in the literature regarding how social enterprises manage HR across contexts, especially in developing countries where institutional and cultural contexts might differ from those of developed countries. Batt and Banerjee (2012) suggested that the literature on HRM, including strategic human resource management (SHRM), should extend beyond the organizational context and examine how institutional contexts influence the adoption of organizations’ HR practices. Additionally, Batt and Banerjee (2012) noted that the majority of studies in the HRM literature focus on profit-oriented firms in the private sector and ignore other types of organizations such as non-profits or social enterprises.

Details

International Journal of Emerging Markets, vol. 13 no. 6
Type: Research Article
ISSN: 1746-8809

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