Role of power in supply chain performance: evidence from agribusiness SMEs in Uganda

Odongo, Walter; Dora, Manoj; Molnár, Adrienn; Ongeng, Duncan; Gellynck, Xavier

doi:10.1108/jadee-09-2016-0066

Cited by 20 publications

(15 citation statements)

References 67 publications

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“…On the other hand, when the intermediaries exercise their POQ, it imposes specific and strict conditions on how the product should be harvested, stored and delivered, which small-scale farmers [4] might not be able to fulfil. These results converge with Odongo et al (2017), who state that managers of agribusiness companies should be aware of their power position in the chain and use appropriate influence based on their chain position. Thus, exercising power beyond their chain position and not being open about it with other chain members could have detrimental effects on trading relationships (e.g.…”

Section: Discussionsupporting

confidence: 78%

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How intermediaries' power affects contract farming decisions: evidence from the medicinal and aromatic plant sector in Albania

Xhoxhi

Stefanllari²,

Skreli

et al. 2020

JADEE

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PurposeIn the debate on rural development, contract farming (CF) is pointed out as a mechanism that reduces constraints on farmers' access to resources and improves farmers' welfare. However, the role of intermediaries' power in farmers' contracting decisions has not been investigated thoroughly. Considering that intermediaries' power affects farmers' businesses, livelihoods, risk and profit sharing, it becomes imperative to understand its effects on contracting decisions. Thus, the purpose of this paper is to investigate the dimensions over which intermediaries exercise the power they hold over farmers and how these power dimensions influence farmers' participation in CF.Design/methodology/approachA survey was conducted in the leading Albanian MAP production region, Malësi e Madhe, with 168 sage producers interviewed using a structured questionnaire. Exploratory factor analysis (EFA) is employed to develop measures for the latent variables of the study (e.g. intermediaries' power), and a logit regression is used to assess CF determinants.FindingsThe study finds that intermediaries exercise their power over different dimensions of farmers' activities, namely profit margin and activities related to product quality. The results point out that intermediaries' exercised power over farmers' margins and product quality-related activities decreased farmers' likelihood to engage in CF. On the other hand, a farmer's commitment to the intermediary and investment in specific assets increased the likelihood of participation. Furthermore, the analysis shows that CF does not leave small farmers out of high-value agricultural commodity chains (HVAC) for highly labour-intensive crops.Research limitations/implicationsThe analysis focuses only on one sector with export orientation. Generalisation to other sectors is limited due to the specific features of the MAPs value chain.Originality/valueThe paper expands the debate on CF by adding the concept of intermediaries' power and its different dimensions of influence on farmers' participation in CF.

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Section: Discussionsupporting

confidence: 78%

“…Thus, exercising power beyond their chain position and not being open about it with other chain members could have detrimental effects on trading relationships (e.g. reduced cooperation and coordinationno contracts/agreements) and performance of chain members, as well as the performance of the whole chain (Odongo et al, 2017).…”

Section: Discussionmentioning

confidence: 99%

How intermediaries' power affects contract farming decisions: evidence from the medicinal and aromatic plant sector in Albania

Xhoxhi

Stefanllari²,

Skreli

et al. 2020

JADEE

View full text Add to dashboard Cite

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“…Bhattarai et al (2013) also assessed the performance of a supply chain for organic vegetables from a smallholder perspective in Kathmandu region, Nepal. Odongo et al (2017) examine the role of power in SCP in the context of small-and medium-sized agri-business enterprises. Important factors that have spurred interest in food value chain include growing urban demand for added-value foodstuffs in developing countries, more stringent quality and food safety standards by governments and private firms (Donovan et al, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Wholesalers perspectives on mango supply chain efficiency in India

Negi

Anand

2019

JADEE

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Purpose The purpose of this paper is to identify the factors and most significant reasons leading to supply chain inefficiency with respect to high cost, high lead time and poor quality at wholesale stage of mango supply chain in India, and also to find out the measures which may be taken to improve supply chain efficiency. Design/methodology/approach The paper opted for an exploratory study using the quantitative and qualitative method of research. The study was conducted at Asia’s largest and world’s second largest fruits and vegetable wholesale market (Mandi) in Azadpur, Delhi. Factors have been identified using factor analysis and the measures to improve supply chain efficiency in fruits sector have been found out through semi-structured interviews with agri- and food-supply chain experts. Findings Based on the factor analysis, three factors were identified for high cost, namely, operational charges, labour and resources; four factors were identified for high lead time, namely, operational issues, labour, resources and infrastructure; and four factors were identified for poor quality, namely, operational issues, infrastructure, resources and poor ambience. It was also found that operational factor is the most significant factor leading to supply chain inefficiency. The study also highlighted the measures for improving supply chain efficiency based on the outcome of the interviews. Research limitations/implications This study is limited to the wholesale stage of fruit supply chain with the focus on Azadpur Mandi, Delhi, India, with specific reference to mango. Also, the measures have been identified for only the most significant reasons under each factor leading to supply chain inefficiency with respect to cost, time and quality. Originality/value There is a dearth of literature on improving the supply chain efficiency pertaining to the wholesale stage of fruits and vegetable sector in India. This paper tries to fulfil the gap and contributed to the literature on agriculture supply chain, which may be helpful for the researchers as well as the practitioners to improve food supply chain pertaining to developing countries.

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“…In our study, the triadic supply chain with the manufacturer sitting on top of the structural hole and running the brokered network governance mechanism is the example of egocentric network. Likewise, the sampling logic used in our research is vital, as prior identification of suppliers and customers of the manufacturer is infeasible (Odongo et al , 2017). Furthermore, following the view of Tsanos et al (2014), the matched approach gave us the opportunity to collect information that is based on the revealed (not perceived) responses of all three supply chain actors.…”

Section: Methodsmentioning

confidence: 99%

The effects of brokered network governance on relational embeddedness in the triadic supply chains: is there a room for the “Coleman rent”?

Świerczek

2019

SCM

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Purpose The purpose of this paper is to explore whether brokered network governance, run by the manufacturer, affects relational embeddedness and thus contributes to yielding the Coleman rent in the triadic supply chains. Design/methodology/approach Building upon the theoretical tenets of transaction cost analysis, complemented by the underpinnings of social capital theory, this study involves an empirical investigation that uses survey data collected from the triadic supply chains in Europe. The research covers a two-step analysis. In the first step, the Coleman rent was estimated through the regression analysis with the interaction effects. Then, partial least squares–structural equation modeling was used to estimate the reflective-formative nature of higher component model and test the research hypotheses. Findings The results of the study demonstrate that the distribution of three mechanisms in network governance is relatively even; however, market and hierarchy still emerge as the most impactful dimensions. Interestingly, though, this study shows that social capital can actually coexist with market and hierarchy in the triadic supply chains with the structural hole. Likewise, the research indicates that the impact of brokered network governance on the strength of network relational embeddedness is significant, but relatively weak, whereas network relational embeddedness has a strong and positive effect on the Coleman rent. Research limitations/implications This study makes three major contributions. First, this study is one of very few that explicitly considers brokered network governance, run by the manufacturer positioned on the structural hole in its triadic supply chain. Second, as the triadic perspective is still uncommon in the supply chain studies, this research investigates a triad with the structural hole within the manufacturing setting. Third, the paper seeks to investigate the ability to yield the Coleman rent in the triadic supply chains with the structural hole, although this type of rent is typically linked to another arrangement called closure. Originality/value Given the increasing attention paid to the role of social capital within supply chains, this study investigates how relational embeddedness can be used by the manufacturer, sitting on the structural hole and running the network governance mechanism, to yield the Coleman rent in the triadic supply chain.

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Role of power in supply chain performance: evidence from agribusiness SMEs in Uganda

Cited by 20 publications

References 67 publications

How intermediaries' power affects contract farming decisions: evidence from the medicinal and aromatic plant sector in Albania

How intermediaries' power affects contract farming decisions: evidence from the medicinal and aromatic plant sector in Albania

Wholesalers perspectives on mango supply chain efficiency in India

The effects of brokered network governance on relational embeddedness in the triadic supply chains: is there a room for the “Coleman rent”?

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