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Interaction model of agribusiness: the case of tomato farming in West Java
... The government's support for agricultural innovation will be harmonized and will result in mutual welfare, as seen in Africa (Warinda et al., 2020). In Africa, the Indonesian government provides support to the agricultural sector by facilitating the production process and improving agricultural relocated areas that utilize local resources ( (Okdinawati et al., 2020;Sharp et al., 2020). The government's contribution to advancing the agricultural sector can also be viewed from the policies issued by the government of West Jakarta by assuring land ownership for local farmers (Chandra & Diehl, 2019). ...
Food security has become a global issue for the Food Agriculture Organization. A country plays an active role in actualizing food sustainability. The concept of a welfare state requires a country to be competent in realizing people’s prosperity. The discussion of Malaysian agricultural policies for objectifying the welfare state has drawn attention because it strengthens food security. This study is based on empirical research that uses a descriptive qualitative approach. The primary data are from interviews with the Federal Agricultural Marketing Authority (FAMA) officials and the secondary data are from Malaysian policy documentation. These were then analyzed qualitatively using the welfare state theory. The article shows that Malaysia made agricultural policies comprehensively by strengthening regulations, funding, and supervising to morally support farmers, so they were motivated to advance the economic sector voluntarily. Malaysian agricultural policies to help farmers actualize the state’s dream of becoming a welfare state. The Malaysian government’s involvement in providing a supervising program, funding, and legal certainty regarding crops’ basic prices became a transformational power of the agricultural sector. The success of the Malaysian agricultural sector is a valuable lesson for the independent economy and food security reinforcement of others, specifically in Southeast Asia, which has similar geographic characteristics.
In most of the studies on market orientation it has been proven that
the market orientation has a positive effect on firm performance. It is important
to know the mediation effect of market orientation on business performance.
The oerspective buyer-supplier relationship and dynamic capabilities are
described in this paper. The view of market orientation is a business
perspective that makes the customer as the focal point of total operating
companies. The purpose of this study is to give an understanding of the
conceptual advances, models of research on the impact of market orientation,
buyer-supplier relationship to company performance and dynamic capabilities
on firm performance are proposed and described. With the conceptual model
developed, the author shows how market orientation and buyers-suppliers
relationship can turn into dynamic capabilities and competitive value argument
that market orientation and buyer-supplier relationship positively mediate the
dynamic capability. Finally, some research hypothesis for research related to
market orientation, buyer-supplier relationship to firm performance with the
dynamic capabilities as an intervening variable in the future are discussed.
Value chain analysis has been applied in various fields, from the time the concept of ?value chain? was introduced by Porter in 1985. Several frameworks have emerged and have been used to study individual firms, entire industries, industry clusters, as well as global production networks. The purpose of this paper is to provide a brief review of these frameworks, identify factors that influence the performance of value chains, and suggest areas for future research. Since there is a wide range of value chain literature, this paper focuses on a selective set of earlier works within the value chain model as conceptualized by Porter. The study takes note of the many dimensions and applications of value chain analysis, and shows that value chain analysis is an effective way to examine the interaction among different players in a given industry. The study further points out the shortcomings of the traditional or Porter view of value chain analysis.
For over 7,000 years wine is produced in Armenia; hence as new discoveries show Armenia can be considered as the cradle of wine production. Despite of or because of this tradition nowadays Armenia is more recognised for its prime brandy production than for its wine. Starting to operate a brandy business Pernod-Richard started to introduce numerous innovations. They introduced new processing techniques but also they started a new system to procure grapes. Today, years after the market entry of this foreign company one has to notice that the whole brandy business has changed. As we have observed in our field study this development is not only limited to the brandy production but also is valid for the wine business. Hence, the aim of our article is to describe the development of the Armenian wine and brandy business and to discuss in this context the influence that foreign investors have taken in this development. We further try to give an outlook on the future role that foreign investors and their ideas will have for the Armenian wine and brandy business.
Coordinated supply chain represents major challenges for the different actors involved in it, because each agent responds to individual interests. The paper presents a framework with the reviewed literature regarding the system's decision structure and nature of demand. Later, it characterizes an agri food supply chain in the Central Region of Colombia, it responds to a decentralized distribution system and a stochastic demand. Finally, the paper recommends coordinating the chain based on shared information, and mechanisms for each agent, as VMI (vendor-managed inventory) strategy for farmer-buyer relationship, information system for farmers and contracts for transportation service providers.
This paper introduces the supply and value chains of the Colombian cocoa agribusiness. For such purpose, we have identified not only the agents, phases, stages and factors influencing the planting and harvesting of the product, but also the chocolate and confection production process, as well as the final consumption. Finally, the national production is described in the context provided by the international market.
The importance of power is underlined by many scientists who view it as a key behavioural construct. Power distinguishes itself as an effective tool in coordinating and promoting harmonious relationships, solving conflicts, and enhancing performance. An important challenge is to find out what role power plays in managing supply chain networks, paying specific attention to its effects on coordination and cooperation. The aim of our work is to investigate the role of power in supply chain networks in order to work out a strategy that enables supply chain managers to select an effective mix of power mechanisms. We critically examine the existing literature and elaborate on the role of power in supply chain relationships. We work out and test a theoretical model of the effects of power on cooperation and coordination and discuss possible managerial implications of using power as an effective tool for promoting supply chain management. To verify our research hypotheses we conducted semi-structured in-depth expert interviews via telephone about relationships of international food processing companies with their suppliers in Russia and tested the model using the Partial Least Squares (PLS) approach. Depending on the origin of power, it may have different effects on cooperation and coordination. Based on the results of the survey we worked out a special ranking system for the use of power depending on its expected effect on coordination and cooperation. Expert power has the highest ranking among the other types of power for improving coordination. Therefore, we recommend using this strategy as a first priority for improving coordination. The data in our PLS analysis represent only a single perspective in the dyad: food processing companies. Gathering data from other companies' perspectives, such as retailers or agricultural producers, could have produced different (presumably more realistic or complete) findings. Our study offers recommendations for managers about the use of different types of power in managing the Russian agri-food supply chains, with specific attention paid to coordination and cooperation issues. In order to manage supply chain networks successfully, knowledge of different types of power is essential. The developed ranking of different types of power according to their effects on coordination and cooperation is designed to help managers make the right decisions in choosing the appropriate type of power for coordination purposes.
Purpose
The purpose of this paper is to advance supply chain network theory by applying theoretical and empirical developments in complex network literature to the context of supply chains as complex adaptive systems. The authors synthesize these advancements to gain an understanding of the network properties underlying efficient supply chains. To develop a suitable theory of supply chain networks, the authors look to mirror the properties of complex network models with real‐world supply chains.
Design/methodology/approach
The authors review complex network literature drawn from multiple disciplines in top scientific journals. From this interdisciplinary review a series of propositions are developed around supply chain complexity and adaptive phenomena.
Findings
This paper proposes that the structure of efficient supply chains follows a “scale‐free” network. This proposal emerges from arguments that the key properties of efficient supply chains are a short characteristic path length, a high clustering coefficient and a power law connectivity distribution.
Research limitations/implications
The authors' discussion centres on applying advances found in recent complex network literature. Hence, the need is noted to empirically validate the series of propositions developed in this paper in a supply chain context.
Practical implications
If efficient supply chains resemble a scale‐free network, then managers can derive a number of implications. For example, supply chain resilience is derived by the presence of hub firms. To reduce the vulnerability of supply chains to cascading failures, it is recognized that managers could build in redundancy, undertake a multi‐sourcing strategy or intermediation between hub firms.
Originality/value
This paper advances supply chain network theory. It offers a novel understanding of supply chains as complex adaptive systems and, in particular, that efficient and resilient supply chain systems resemble a scale‐free network. In addition, it provides a series of propositions that allow modelling and empirical research to proceed.
This introductory paper to the special issue on governing global value chains
(GVCs) focuses on the concept of governance as the dimension of GVCs that has
received the most theoretical and empirical attention to date. After a brief
introduction of the GVC concept in relation to the literature on economic
globalization, we review the three main interpretations of GVC governance that
have been advanced: governance as driving, governance as coordination and
governance as normalization. After summaries of the four subsequent papers (by
Bair, Gibbon and Ponte, Milberg, and Palpacuer), the authors offer reflections on
the current state of development of GVC analysis. The unevenness and theoretical
eclecticism of the GVC literature to date, particularly but not only with regard to the
understanding of governance, poses the question of whether it is possible to
reconcile the different approaches within a unified paradigm. If not, then GVC
analysis is better understood as a methodological approach that can be mobilized
within various theoretical perspectives.
Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.
Purpose
Value chain analysis (VCA) can expose strategic and operational misalignments within chains, and the consequential misallocation of resources, and hence opportunities for improvements which create value and economic sustainability. This paper's purpose is to argue why and how VCA needs to integrate the social and environmental aspects of sustainability in pursuit of sustainable competitive advantage.
Design/methodology/approach
Based on a review of existing methods and case studies, the paper proposes three dimensions of VCA, which illustrate the flaws in narrow tools, and the need to broaden the boundaries of VCA, the interpretation of “value” and relationships along the chain in order to highlight opportunities for creating sustainable value chains.
Findings
To date VCA has largely focused on economic sustainability and paid inadequate attention to social and environment consequences of firm behaviour and the (re) allocation of resources within and between firms in the chain. This risks producing recommendations which either ignore the competitive advantage offered from improving environmental management and social welfare, or have such detrimental external consequences as to render any proposals unsustainable when exposed to government or broader (public) scrutiny.
Research limitations/implications
VCA variants need to be developed which incorporate all three pillars of sustainability. Some initial experiences are presented and ideas for future research and applications proposed.
Practical implications
The development of sustainable VCA tools should identify business opportunities consistent with Porter and Kramer's imperative for value chains to create shared value between business and society.
Originality/value
Adopting the broader dimensions identified will allow VCA to become more widely applicable, and more relevant in business scenarios where there is a growing imperative to include social and environmental impacts into “mainstream” business strategies.
The value of fresh fruits and vegetables (FFV) output doubled in Indonesia over 1994-2004, to
become a 10 billion dollar industry. While FFV expenditure was 50 percent of Indonesian rice
expenditure in 1994, it had risen to 75 percent of rice outlays by 2004 – and in urban areas, was
at 100 percent that is, urban Indonesians, nearly half the population, spend the same on rice and
FFV. Nearly all of the FFV market is domestic: while imports of FFV nearly tripled over that
decade, but by today are still very minor, accounting for about 3 percent of FFV consumption in
Indonesia (the same as the developing country average).
This study focuses on the main vector of globalization change on it, via the rapid rise of
supermarkets1, in particular in the past five years. Supermarkets occupied a tiny niche in the food
market through the 1980s. They were still confined to an urban upper income tiny niche by the
mid 1990s, but after 1998 (spurred by liberalization of foreign direct investment in retail, a driver
for the “takeoff” of supermarkets in many developing countries in the 1990s, complemented
by income growth and urbanization and their concomitant changes) has grown very quickly to
now occupy roughly 30 percent of overall food retail. Traditional retail loses about 2 percent of
its share each year. Informed observers believe within a decade modern retail will dominate the
majority of the food market in Indonesia. Key features of these changes are as follows:
(a) As in other countries, supermarkets in Indonesia have not penetrated FFV retail as quickly
as they did processed and semi-processed foods, so that industry estimates of the share of FFV
retail stand at about 10-15 percent share for supermarkets. This is still minor, but up from nearly
zero a decade ago, and likely to continue to grow along with the overall retail transformation.
Selling produce only began in earnest in the past five years among modern retailers.
(b) The wholesale sector has been differentiating and segmenting over the past decade,
partly independently of the retail transformation, with the rise of large, and more capitalized,
wholesalers in rural areas, and the decline of small field brokers.
(c) Recently there have emerged specialized/dedicated wholesalers focused on the supermarket
and other modern food industry segments.
The network perspective is rapidly becoming a lingua franca across virtually all of the sciences from anthropology to physics. In this paper, we provide supply chain researchers with an overview of social network analysis, covering both specific concepts (such as structural holes or betweenness centrality) and the generic explanatory mechanisms that network theorists often invoke to relate network variables to outcomes of interest. One reason for discussing mechanisms is to facilitate appropriate translation and context-specific modification of concepts rather than blind copying. We have also taken care to apply network concepts to both “hard” types of ties (e.g., materials and money flows) and “soft” types of ties (e.g., friendships and sharing-of-information), as both are crucial (and mutually embedded) in the supply chain context. Another aim of the review is to point to areas in other fields that we think are particularly suitable for supply chain management (SCM) to draw network concepts from, such as sociology, ecology, input–output research and even the study of romantic networks. We believe the portability of many network concepts provides a potential for unifying many fields, and a consequence of this for SCM may be to decrease the distance between SCM and other branches of management science.
This article builds a theoretical framework to help explain governance patterns in global value chains. It draws on three streams of literature – transaction costs economics, production networks, and technological capability and firm-level learning – to identify three variables that play a large role in determining how global value chains are governed and change. These are: (1) the complexity of transactions, (2) the ability to codify transactions, and (3) the capabilities in the supply-base. The theory generates five types of global value chain governance – hierarchy, captive, relational, modular, and market – which range from high to low levels of explicit coordination and power asymmetry. The article highlights the dynamic and overlapping nature of global value chain governance through four brief industry case studies: bicycles, apparel, horticulture and electronics.
If The Machine That Changed the World is a description of the Toyota system in the industry of its origin, Lean Thinking is a generalization of the basic concepts so they can be applied to any company in any industry. The authors begin by summarizing the five inherent principles in any lean system: 1 correctly specify value so you are providing what the customer actually wants, 2 identify the value stream for each product family and remove the wasted steps that don't create value but do create muda (waste), 3 make the remaining value-creating flow continuously to drastically shorten throughput times, 4 allow customer to pull value from your rapid-response value streams as needed (rather than pushing products toward the customer on the basis of forecasts), and 5 never relax until you reach perfection, which is the delivery of pure value instantaneously with zero muda. (The first part of Lean Thinking devotes a chapter to each of these principles.) In the second part, the authors describe in detail how managers in a wide range of companies and industries - small, medium and large, North American, European and Japanese - transformed their business by applying the principles of lean thinking. Chapters are devoted to Pratt and Whitney, Wiremold, Lantech in North America, Porsche in Germany, and Showa Manufacturing in Japan. Lean Thinking has sold more than 300,000 copies in the English language hard-cover version alone, because it's an indispensable companion for every manager making the lean journey.
Purpose
The purpose of this paper is to explore how structural and economic issues of organising inter-firm relationships influence a supply chain (SC) performance, by using the insight of organisational theories and institutional economics.
Design/methodology/approach
The study is an exploratory field study in the Australian agri-food industries. Using a conceptual model and a set of semi-structured interview questions, data collection was done through in-depth interviews with eight agri-food firms from the agri-food SCs in Western Australia (WA).
Findings
The findings demonstrated the requirement of higher coordination and integration from the downstream industries to include upstream producers as the integral part of the SC.
Research limitations/implications
The study is based on eight in-depth interviews on cross-sectional food SCs in WA and generalises the result for the overall food industry in WA.
Originality/value
The study provides valuable information to the existing literature on industrial management and has important value to the users of agri-food SCs. It provides empirical evidence of the factors of SC performance for agri-food producers, processors and retailers, other stakeholders and government agencies for their planning and benchmarking.
The situation and performance of agricultural enterprises is an often discussed topic in the Czech Republic. Internationalisation, in other words the process of increasing involvement in international activities, is considered as one way enterprises can achieve growth and maintain their competitiveness. In this connection, the paper aims to explore the answer to the research question: What are the specifics of internationalisation of Czech agricultural SMEs? The attention is especially paid to the motives, barriers and risk factors of internationalisation of these enterprises. The paper deals with both agricultural SMEs that already expanded in foreign markets as well as with those that do not operate in foreign markets with stress on the reasons why they do not take part in internationalisation. The paper is based on primary data that were collected via questionnaire survey and personal interviews with Czech agricultural enterprises during 2014.
This paper analyzes the phenomenon of cooperation in modern supply chains in the light of Cooperative Game Theory. The author provides a detailed discussion on the meaning of cooperation in supply chains, its motives, outcomes and barriers. A review of recent studies that analyze the cooperation in supply chains by means of cooperative game theory is provided with a special emphasis on inventory centralizations games. Gaps in the literature are identified to clarify and to suggest future research opportunities.
Senior Lecturer in Strategic Management, Business School, Birmingham City University • Covers all the core topics of Strategic Management in 12 manageable chapters, fitting perfectly with 1-semester modules, and including separate chapters on current issues such as Corporate Governance and Globalization. • The emphasis is on strategic analysis throughout -focussing on the fundamental analytical tools required by future managers to assess their organisations in their competitive environment, thus preparing students for dealing with strategic management in practice. • Packed with real life examples to illustrate the core concepts, students will more readily understand the theory behind strategic management. Understanding Strategic Management is the perfect introduction to this subject. It explains, analyses, and evaluates important strategic concepts within 12 concise chapters. It's packed with real life examples, including fascinating case studies on companies such as Apple, Tesco, Gillette, and Virgin. Through this approach, Understanding Strategic Management helps readers new to strategy to see how theoretical concepts are actually applied in the real world of business. This very readable book will take students through all the key stages of strategic management: analysis, formulation, and implementation. Classic subjects such as industry analysis and strategic leadership are thoroughly investigated, alongside contemporary issues such as corporate governance and globalization. Concepts, models, and frameworks are rigorously evaluated, encouraging readers to think critically, and to appreciate the different perspectives in the field. The emphasis of the book is on helping students gain the tools of analysis essential for understanding the competitive and internal environments that organisations face.
In buyer–seller relationships, the focus has moved beyond individual firms to value-creating networks formed by key firms in the value chain that deliver value to the end consumer. The article develops a rationale for value-creating networks using three core building blocks: superior customer value, core competencies, and relationships. The rationale is developed based upon an understanding of the value-creation process and its links to core capabilities of firms in the network. The importance of inter-firm relationships in realizing the true potential of the value-creation networks is also highlighted. The authors argue based on their sample analysis of some examples that competition in the future will shift to the network level from the firm level. The influence of some emerging business tools such as electronic commerce on redefining value creation is also discussed.
Presents the need for the European agribusiness and food industries to redesign and reposition their activities in the food supply chain, both at a technical and organizational level, in order to achieve customer satisfaction and business efficiency. Focuses on the findings of ten supply chain projects in the Dutch horticultural sector and on the results of a benchmarking project in five different European countries. Describes the activities of the “Agri Chain Competence” programme in The Netherlands. Stresses that more attention should be paid to international food supply chains and that chain reversal asks for new methods, tools and expertise on chain analysis and chain management.
This paper introduces and provides an overview of social network theory and social network analysis (SNA) and its potential applications to logistics and supply chain management research. It then provides an example of the use of SNA via the introduction of hypotheses related to informal and formal structure and influence within a social network. These hypotheses are tested within the context of the development and implementation of a complex reporting system that evolved as the result of warehousing safety and environmental concerns within an organization.
A system of interconnected buyers and suppliers is better modeled as a network than as a linear chain. In this paper we demonstrate how to use social network analysis to investigate the structural characteristics of supply networks. Our theoretical framework relates key social network analysis metrics to supply network constructs. We apply this framework to the three automotive supply networks reported in Choi and Hong (2002). Each of the supply networks is analyzed in terms of both materials flow and contractual relationships. We compare the social network analysis results with the case-based interpretations in Choi and Hong (2002) and conclude that our framework can both supplement and complement case-based analysis of supply networks.
Purpose
The purpose of this paper is to briefly review earlier contributions to partner/cooperative innovation with the aim of evaluating the application of the concept to the increasingly popular virtual/value chain business model.
Design/methodology/approach
A number of example cases of partner/cooperative innovation are examined and, although these are limited in number, it would appear that a classification of types of partner/cooperative innovation is possible.
Findings
Partner/cooperative innovation combines elements of process and product innovation management within a “network structure” to create a product‐service response that neither partner could create using its own resources. They extend in both directions of the supply chain (upstream and down stream) and include supplier relationship management such as that demonstrated between Dell and its myriad of suppliers, and examples of customer relationship management such as the relationship that Caterpillar has built with its distributor/service network.
Research limitations/implications
The findings need further validation through empirical data analysis in appropriate industrial settings.
Practical implications
The paper includes a model that facilitates the evaluation of the “total efficacy” of partner/cooperative innovation alternatives. As such, the paper offers a viewpoint to be considered by management.
Originality/value
The paper describes partnership/cooperative innovation that combines elements of process innovation management and product innovation management within a network structure. Neither partner can independently create this network using its own resources to meet customer/market determined expectations for product and/or service performance at an economic (viable) cost. Third party involvement is typical.
Across the European Union, concentration in food retailing at the national level has been increasing for some time, but increasingly multinational retailers have been extending their international reach. In the process, aggregate concentration has risen sharply over the last few years. In addition, the presence of buyer groups, representing different retail interests, adds to the characterisation of procurement markets as highly concentrated. Also at the aggregate level, cross-border buyer alliances amongst large retailers have emerged. We consider the implications of these features for the changing patterns of retail competition and the impact on food producers, supplier competition and economic welfare.
Integrated Value Chain Risk Management
- A Calatayud
- J A Ketterer
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- Faostat
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- N Minot
- C Delgado
- S Bora
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Problems and prospects sustainable agricultural development in Solok District
- Mahdi
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- World Bank
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