Multiple supply chain adoption under uncertainty

Abstract

Purpose The spatial and psychological distance within agri-food chains provides both profit and risk for supply chain members. Grounded on the transaction cost economics (TCE) and institutional theory (IT), the purpose of this paper is to test whether the adoption of multiple supply chains (MSCs), which adopt both traditional and shortened supply chains, can be used to manage uncertainty and mitigate the risk associated with a supply chain. Design/methodology/approach In order to test the hypothesis, matched questionnaire surveys were developed to collect the data from farm managers and consumers. Completed questionnaires were received from 112 respondents. The hierarchical regression analysis was performed to test hypotheses. Findings The result shows the positive effects of environmental and behavioral uncertainties on MSC adoption and represents the diminished moderating effects of institutions (industrial and consumption tendency) on the relationship between uncertainties and MSA adoption. Research limitations/implications This study only explored producers and their recommended consumers; future studies can undertake questionnaire designs (one producer-to-many consumers) and empirical analyses with analytic hierarchy process theory to reexamine the hypotheses proposed in this study. Practical implications MSC adoption is a way to manage uncertainties resulting from spatial and psychological distance in the supply chain. Producers and consumers show their risk preferences by SC adoption after considering pre-constructed societal norms. Therefore, the consumers’ and producers’ choice of a supply chain reflects a process of communicating risk. The adoption of a mixed governance mode (MSC adoption) and accessing information about common practices are two ways to decrease such uncertainties. Social implications There are multiple goals (traceability, fairness, efficiency, well-being) in the food supply chain that may be satisfied by MSC adoption. Therefore, policymakers should understand the different values of various supply chains and facilitate the development of various supply chain modes. Originality/value This study integrated the undersocialized and oversocialized perspectives (TCE and IT) to understand how uncertainties of supply chains may be diminished. Based on these perspectives, it found that the adoption of the mixed governance mode and accessing of institutional information are two ways to decrease such uncertainties.

Managers' risk perception of supply chain uncertainties

“…These models and methodologies have contributed to the development of supply chain management. However, as Liu and Lee (2019) suggested, empirical analyses that quantitatively incorporate risk perception remain to be explored.…”

“…Nevertheless, practical contributions covering cross-sectional differences are yet to emerge in the field. For the findings to be generalized, the questionnaire designs need to be refined and a further empirical analysis of the AHP is required (Liu and Lee, 2019). Hence, we propose the following research questions:…”

Traceability and Management Method of Supply Chain Information Based on Wireless Sensor Network

“…The members will develop toward a common goal, which saves time cost and response time in the supply chain. In short, the agility of the supply chain is enhanced; the transactions between supply chain enterprises have common standards and specifications, the development of competence trust can prompt partners to comply with requirements, the coordination workload is greatly reduced, and the supply chain can make rapid changes to the environment [23]. Second, the existence of competence trust can prompt enterprises to immediately organize the distribution and production of raw materials after receiving orders and then immediately deliver the finished products to wholesalers and retailers and finally to consumers, so as to satisfy customers.…”

“…In actual operations, factors such as the rapid changes in the market environment and the internal innovative technologies of node enterprises will affect market demand to a certain extent. Chen Ting [23] pointed out in the that the demand disturbance factors refer to the frequency of their occurrence, and the specific impact on demand and the timeliness and urgency of calming disturbances can be divided into frequent demand disturbances and sudden demand disturbances.…”

AI technologies and their impact on supply chain resilience during COVID-19

“…Social distancing and isolation measures adopted globally have resulted in a stark downward trend in business and consumer buying patterns (Anderson et al , 2020). One of the main concerns for most businesses is the uncertain duration of the current outbreak and the emergence of other waves (Gunessee and Subramanian, 2020; Liu and Lee, 2019). Different countries/regions are at different stages of handling the outbreak, putting the balance of supply and demand into jeopardy and having the potential to affect global business in the long run.…”