Farm business financial performance in local foods value chains

2018 ◽  
Vol 78 (4) ◽  
pp. 470-488 ◽  
Author(s):  
Mary Clare Ahearn ◽  
Kathleen Liang ◽  
Stephan Goetz
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Food System ◽  
Choice Model ◽  
Direct Marketing ◽  
Small Samples ◽  
Local Foods ◽  
Content Type ◽  
Local Supply

PurposeThe purpose of this paper is to identify the factors associated with farm financial success for those farms known to produce for local supply chains. The analysis considers alternative measures of farm financial performance and considers the role of the local foods supply chain in the choice to market locally.Design/methodology/approachThe paper uses a two-stage Heckman approach which addresses the possibility of sample selection bias. In the first stage, the choice model to engage in direct marketing is estimated. In the second stage, the authors estimate a model of the financial performance of those in the sample that direct marketed which includes an IMR term calculated from the parameters of the first stage equation. The analysis uses national farm-level data from the Agricultural and Resource Management Survey of the US Department of Agriculture and combines data from 2009 to 2012 to overcome the constraint of small samples.FindingsIndicators of the development of a local foods supply were positively related to the choice to engage in direct marketing. Factors affecting farm financial performance varied significantly between a short-term and a long-term measure. The results emphasize the importance of considering multiple outcome measures, developing local supply chains and provide implications about beginning farms.Originality/valueIf a local foods system is going to thrive, the farms that market the agricultural products in the local food system must attain a certain level of profitability. The value of the analysis is an improved understanding of the financial performance of farms producing for a small, but growing segment of the food supply chain.

scholarly journals Supply chain inclusion in base of the pyramid markets

2019 ◽  
Vol 49 (5) ◽  
pp. 575-598 ◽  
Author(s):  
Eugenia Rosca ◽  
Guido Möllering ◽  
Arpan Rijal ◽  
Julia Christine Bendul
Keyword(s):  
Cluster Analysis ◽  
Supply Chain ◽  
Supply Chains ◽  
Social Impact ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Local Supply ◽  
Bop Markets

Purpose The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approach A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. Findings The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis. Research limitations/implications This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implications The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/value This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).

scholarly journals Integrating the Supply Chain … 25 years on

2016 ◽  
Vol 46 (1) ◽  
pp. 19-42 ◽  
Author(s):  
Graham C. Stevens ◽  
Mark Johnson
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Original Work ◽  
State Of The Art ◽  
Conceptual Approach ◽  
Content Type ◽  
Firm Financial Performance ◽  
Practical Implications ◽  
Selection Of

Purpose – Twenty-five years ago IJPDLM published “Integrating the Supply Chain” (Stevens, 1989). The purpose of that original work was to examine the state-of-the-art in supply chain management (SCM). There have been substantial changes to the landscape within which supply chains function and changes to supply chains themselves. Given these changes it is appropriate to re-visit what is the new state-of-the art and determine whether the 1989 conceptualization requires extending. The authors also attempt to assess whether the evolution of SCM is associated with improved financial performance. The paper aims to discuss these issues. Design/methodology/approach – The authors take a conceptual approach to suggest that SCM is undergoing a transition to devolved, collaborative supply chain clusters. In addition, the authors consider imperatives and models for supply chain change and development. In line with the 1989 work, many of the observations in this invited paper are based on the primary author’s experience. The authors use a selection of financial data from leading firms to assess whether benefits attributed to SCM and changes in supply chain operating models have affected financial performance. Findings – The authors formalize a model for the dynamics of SCM change. The authors also synthesize a number of models of SCM that extend the original, highly cited work. These include goal-oriented networks and devolved, collaborative supply chain clusters. The authors also find the associations between the evolution of SCM and measures of firm financial performance over time to be equivocal. Practical implications – This work proposes two additional operating models that firms can implement in order to improve the efficacy of their supply chains. Originality/value – The authors extend Stevens (1989) original work by synthesizing a number of additional models for SCI.

scholarly journals Chain coordinators’ strategic leadership and coordination effectiveness

2017 ◽  
Vol 29 (5) ◽  
pp. 515-533 ◽  
Author(s):  
Pervaiz Akhtar ◽  
Sushil Kaur ◽  
Khanyapuss Punjaisri
Keyword(s):  
Supply Chain ◽  
New Zealand ◽  
Financial Performance ◽  
Supply Chains ◽  
Food Supply ◽  
Supply Chain Coordination ◽  
Strategic Leadership ◽  
Content Type ◽  
Food Supply Chains ◽  
Practical Implications

Purpose Although suitable leadership is crucial for chain coordinators (chief executive officers (CEOs), managing directors and heads of departments) to achieve the effectiveness of supply chain coordination (operational and social performances contributing to financial performance), the potential caveats in New Zealand-Euro agri-food supply chains are the lack of theoretical as well as empirical investigations that scrutinize the linkages between leadership styles, their interactions and the effectiveness of supply chain coordination. The purpose of this study is therefore to address the above knowledge gap. Design/methodology/approach Structural equation modelling and interaction effects are applied to the data collected from chain coordinators working in the selected New Zealand-Euro agri-food supply chains (dairy, meat, fruits and vegetables). Findings The results indicate that participative leadership is more strongly correlated with the effectiveness of supply chain coordination than directive leadership. The directive leadership is also significant, which leads towards the adoption of strategic leadership. Interaction effects further conclude that companies perform better when their chain coordinators apply strategic leadership practices. Moreover, operational (service quality and product quality) and social (trust in and satisfaction with supply chain partners) performances are the key determinants of financial performance (increased sales, profit and market share). Practical implications The results enhance the understanding of chain coordinators and help them to achieve coordination effectiveness among agri-food supply chain partners. Therefore, the study provides practical implications linked with contemporary international agri-food supply chains. Originality/value This study provides in-depth analysis to develop a comprehensive theoretical framework, which helps to confirm the complicated linkages between the underlying constructs, with the specific characteristics of New Zealand-Euro agri-food supply chains. Consequently, the results also clarify the earlier ambiguous findings from other industries and countries.

scholarly journals Building reputation through sustainable supplier selection: the case of an emerging economy

2020 ◽  
Vol 29 (3) ◽  
pp. 315-332
Author(s):  
Mohammad Asif Salam ◽  
Murad Ali
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Supplier Selection ◽  
Emerging Economy ◽  
Equation Modeling ◽  
Content Type ◽  
Sustainable Supply Chains ◽  
Sustainable Supplier Selection ◽  
The Impact

PurposeThe purpose of this research is to examine the drivers of sustainable supplier selection (SSS) and investigate the extent to which it is associated with a buyer's financial performance within an emerging economy context.Design/methodology/approachThe data were collected from 235 supply chain and procurement professionals in Thailand. The structural relationship was tested using partial least squares based structural equation modeling (PLS-SEM) and PROCESS tool.FindingsBased on the empirical findings, firms that pursue sustainability initiatives during supplier selection process enjoy better financial performance than their competitors. The analysis suggests six hypothetical paths explain SSS. Suppliers' human rights and safety focus are the most powerful determinants of SSS. Significantly, positive support was found for the SSS and buyers' financial performance relationship. Finally, there is a significant moderating effect of resource investment on sustainability efforts.Research limitations/implicationsData for the study were collected from a single industry, so the findings are indicative but not representative of all supply chains. Due to this limitation, the findings cannot be generalized across other countries and industries. This study is a starting point in understanding the role of SSS in creating a sustainable supply chain. Future research may develop a comprehensive understanding of the nature and magnitude of the impact of SSS on sustainable supply chains.Originality/valueThis paper contributes toward an understanding of the determinants of SSS and its consequences for sustainable supply chains.

scholarly journals The linkages between leadership approaches and coordination effectiveness

2015 ◽  
Vol 117 (1) ◽  
pp. 443-460 ◽  
Author(s):  
Pervaiz Akhtar ◽  
Zaheer Khan
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Food Supply ◽  
Supply Chain Coordination ◽  
Participative Leadership ◽  
Food Supply Chain ◽  
Content Type ◽  
Food Supply Chains ◽  
Multiple Dimensions

Purpose – A suitable leadership approach and multiple dimensions of performance (operational and social dimensions contributing to financial performance – the effectiveness of international agri-food supply chain coordination) are important because of significant linkages between them. However, there has been no such empirical research to explore the linkages in five selected New Zealand-UK international agri-food supply chains (dairy, meat, vegetables and fruits). Therefore, the purpose of this paper is to address this knowledge gap. Design/methodology/approach – Before applying covariance-based structural equation modelling (a path analysis) on the data collected from 112 chain coordinators (CCs) (chief executive officers, managing directors and head of departments) of the selected agri-food supply chains, a comprehensive process of exploratory factor analysis, reliability and validity tests is used to develop the constructs. Findings – The findings suggest that CCs’ participative leadership approach is highly significantly (β=0.60; p=0.00) associated with the effectiveness of international agri-food supply chain coordination. Directive leadership does not have a significant relationship and its interaction effect with participative leadership resulted in a significant negative relationship with the effectiveness of agri-food supply chain coordination. Moreover, social (satisfaction with and trust in supply chain partners) and operational (service and product quality) dimensions are the major determinants of financial performance (profit, sales and market share) with β=0.44 (p=0.00) and β=0.44 (p=0.05), respectively. These variables jointly explain 70 per cent of the variance in financial performance, and leadership explains 36 per cent of the variance in coordination effectiveness. Practical implications – In order to understand the multiple dimensions of performance and their linkages, the study enhances the understanding of CCs and contributes to determine the best practices for modern agri-food supply chains. Originality/value – This study is the first step in developing and confirming complicated linkages with the specific characteristics of selected international agri-food supply chains. As a result, the empirical evidence also clarifies the earlier ambiguous results on the topic raised from other industries or countries.

scholarly journals Do network capabilities improve corporate financial performance? Evidence from financial supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liukai Wang ◽  
Ji Yan ◽  
Xiaohong Chen ◽  
Qifa Xu
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Service Providers ◽  
Financial Service ◽  
Corporate Financial Performance ◽  
Network Centrality ◽  
Tobin's Q ◽  
Content Type ◽  
Network Power

PurposeThe purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial performance (CFP) in financial supply chains (FSCs).Design/methodology/approachThe authors collect panel data and adopt regression analysis to analyse the joint investment activities among 1359 manufacturing firms and 289 financial service providers in China to explore how network capabilities, both network power and network centrality, improve CFP in the FSCs.FindingsUnder the FSCs environments, network centrality (i.e. eigenvector centrality, closeness centrality and betweenness centrality) raises CFP (ROA, ROE and Tobin's Q) and network power (node degree, clustering coefficient) also improves CFP. However, node strength from the network power stream has a negative effect on Tobin's Q, indicating that when the partner of a firm has an extremely strong influence in FSCs; this weakens the bargaining ability and flexibility of the focal firm, thus reducing its long-term financial performance.Practical implicationsThe joint investment activities among supply chain partners and financial service providers help managers understand the advanced financing solutions generated by internal and external network organisations as well as be aware of network capabilities' impact on CFP in FSCs.Originality/valueThis study answers the call for more empirical research on SCF to provide a broader sample to examine financial supply chain management. This is one of the earliest studies to shed light on a new perspective – how network capabilities improve CFP in the FSCs.

Financial performance measurement of supply chains: a review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masoud Rahiminezhad Galankashi ◽  
Farimah Mokhatab Rafiei
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Financial Performance ◽  
Supply Chains ◽  
Economic Value ◽  
Value Added ◽  
Assessment Process ◽  
Publication Date ◽  
Content Type ◽  
Financial Performance Measures

PurposeThis study provides a systematic review on performance measurement of supply chains from a financial perspective.Design/methodology/approachThis study systematically reviews the financial performance measures of supply chains. More specifically, this research reviews a total of 100 papers published in more than 50 peer-reviewed journals. The reviewed papers are categorized into three major areas of engineering, business and management. Additionally, the papers are investigated based on country, journal frequency, applied methods, publication date and research type (application or developmental).FindingsAccording to the obtained results, cost, return on assets (ROA), sales, asset turnover, return on investment (ROI), market share, inventory turnover, profit margin, revenue growth, economic value added (EVA) and cash-to-cash cycle are the most common metrics of financial performance measurement. Next, a framework is developed based on different categories of performance measurement and decision levels of the supply chain. Finally, some research directions are suggested to be further investigated by other scholars.Originality/valueAlthough available studies on supply chain performance measurement are very vast and comprehensive, the majority of the studies have neglected to highlight the importance of financial measures. In other words, with the advent of nonfinancial measures, however, the majority of supply chain managers still prefer to consider financial issues in their performance assessment process.

Russian railways on the Eurasian market: issue of sustainability

2017 ◽  
Vol 29 (6) ◽  
pp. 664-679 ◽  
Author(s):  
Yulia Panova ◽  
Eugene Korovyakovsky ◽  
Anton Semerkin ◽  
Ville Henttu ◽  
Weidong Li ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Environmental Aspects ◽  
New Approach ◽  
Content Type ◽  
Factors Affecting ◽  
Local Supply ◽  
Regulatory Bodies ◽  
Quantitative Analyses ◽  
Practical Implications

Purpose This research examines factors that determine the improvement of the Russian supply chain sustainability. The strategic business model incorporates ecological, social and economic aspects. Design/methodology/approach Considering Trans-Siberian Railway as a typical case, the study selected several cases or the parts of the primary rail connection with the affiliation of important neighbouring countries. The study uses quantitative analyses of a variety of size parameters (e.g. volumes of traffic, logistics costs, delivery distance and air pollutants). Findings The empirical findings stress that supply chains should favour in the future railway (or intermodal) connections for piggyback and containerised cargo. Herein lays the reason for the examination of all traditional factors affecting the modal choice and their complementation by the parameters to measure sustainability throughout the supply chains. The inclusion of the green practices positively affected the environmental, social and economic performance of the new approach. Research limitations/implications This research focuses on the delivery of cargo in containers and semi-trailers within wagons through the overland corridors. Despite the restrictive empirical findings within the national transport system, some elements can be representative of the international supply chains, provided that intermodal services are the most appropriate for the transportation over long distances. Practical implications Clients, media and regulatory bodies stress the consideration of environmental aspects at all stages of a global supply chain. Therefore, their adoption into strategic imperatives of local supply chains becomes inevitable. Originality/value An assessment of supply chains for longer distance transportation in Russia has not taken sustainability into account within cost analyses.

An empirical examination of firm financial performance along dimensions of supply chain resilience

2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Three Dimensions ◽  
Empirical Examination ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Critical Dimensions ◽  
Firm Financial Performance ◽  
Supply Chain Agility ◽  
The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

Propagation of risks and their impact on performance in fresh food retail

2015 ◽  
Vol 26 (3) ◽  
pp. 568-602 ◽  
Author(s):  
Samir K Srivastava ◽  
Atanu Chaudhuri ◽  
Rajiv K. Srivastava
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Performance Measures ◽  
Theory And Practice ◽  
Food Retail ◽  
Content Type ◽  
Fresh Food ◽  
Retail Supply Chains ◽  
And Performance ◽  
Supply Chain Risks

Purpose – The purpose of this paper is to carry out structural analysis of potential supply chain risks and performance measures in fresh food retail by applying interpretive structural modeling (ISM). Design/methodology/approach – Inputs were taken from industry experts in identifying and understanding interdependencies among food retail supply chain risks on different levels (sourcing and logistics outside the retail stores; storage and customer interface at the stores). Interdependencies among risks and their impact on performance measures are structured into a hierarchy in order to derive subsystems of interdependent elements to derive useful insights for theory and practice. Findings – Using the ISM approach the risks and performance measures were clustered according to their driving power and dependence power. Change in/inadequate government regulations’ are at the bottom level of the hierarchy implying highest driving power and require higher attention and focussed mitigation strategies. Risks like lack of traceability, transport delays/breakdowns and temperature abuse, cross-contamination in transport and storage have medium driver and dependence powers. Research limitations/implications – The approach is focussed on food retail supply chains in the Indian context and thereby limits the ability to generalize the findings. The academics and experts were selected on convenience and availability. Practical implications – It gives managers a better understanding of the risks and performance measures that have most influence on others (driving performance measures) and those measures which are most influenced by others (dependent performance measures) in fresh food retail and also a tool to prioritize them. This kind of information is strategic for managers who can use it to identify which performance measures they should concentrate on managing the trade-offs between measures. The findings and the applicability for practical use have been validated by both experts and practicing managers in food retail supply chains. Originality/value – The work is perhaps the first to link supply chain risks with performance and explains the propagation of risks in food retail supply chains. It contributes to theory by addressing a few research gaps and provides relevant managerial insights for practitioners.

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