Weather Risk–Reward Contract for Sustainable Agri-Food Supply Chain with Loss-Averse Farmer

Fu, Hongyong; Teo, Kok Loy; Li, Yujie; Wang, Lei

doi:10.3390/su10124540

Cited by 13 publications

(8 citation statements)

References 30 publications

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“…Active engagement with consortia to accumulate social capital is also an effective method of helping AFSC stakeholders to recover from weather-related risks [104]. To achieve a win-win situation under the influence of adverse weather, it is suggested that a guaranteed price mechanism-based risk-reward contract should be signed between farmers and wholesalers [105], enabling extreme weather conditions to be hedged and farmers' profits to be guaranteed. To reduce the risk of uncertain exchange rates to an acceptable level, Nyamah et al [62] suggested building collaborative relationships with financial companies and using a range of financial instruments, such as financial hedges and operational hedges.…”

Section: A Thematic Analysismentioning

confidence: 99%

Links Between Risk Source Identification and Resilience Capability Building in Agri-Food Supply Chains: A Comprehensive Analysis

Zhao

Olan

Liu

et al. 2024

IEEE Trans. Eng. Manage.

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Agri-food supply chain (AFSC) resilience is receiving increasing attention as AFSC stakeholders perceive its benefits in recovering from unexpected disruptions. However, which resilience capabilities are more effective in mitigating AFSC risks remains unclear. To address this gap, this article presents a novel AFSC risk and resilience analysis based on a systematic literature review (SLR). In total, 95 journal articles on AFSC risk and resilience management published between 2004 and 2020 are analyzed to identify key risks and resilience capabilities in AFSCs, the relationships, correlations and causalities between them, and research gaps and future research directions in the field. Our SLR reveals eight types of AFSC risk and seven types of AFSC resilience capability, and enables us to develop a one-to-one resilience-risk correspondence model. Suggestions for future research include: cross-country comparative analysis to gain a deeper understanding of risk and resilience management; identification of risk and resilience strengthening strategies through a multi-sectoral approach; longitudinal studies to determine the long-term effects of resilience capabilities; research to understand resilience from the perspectives of supplychain collaboration, traceability, redundancy, knowledge management, innovation, leadership, and flexibility; investigations of the positive effects of AFSC risks in triggering resilience capabilities; and cross-disciplinary research to understand the relationships between resilience and other disciplines.

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Section: A Thematic Analysismentioning

confidence: 99%

Links Between Risk Source Identification and Resilience Capability Building in Agri-Food Supply Chains: A Comprehensive Analysis

Zhao

Olan

Liu

et al. 2024

IEEE Trans. Eng. Manage.

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“…Many studies have focused on government power and regulations (e.g. Fu et al, 2018;Srivastava et al, 2015), coordination between channel members (e.g. Ye et al, 2018) and the structure of stakeholder networks as ways to control risk (e.g.…”

Section: Process Ambidexterity To Reduce Organisation Risksmentioning

confidence: 99%

Process ambidexterity driven by environmental uncertainty: balancing flexibility and routine

Cadeaux

Luo

et al. 2023

IJOPM

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PurposeThis study aims to extend ambidexterity theory from the perspective of organisational learning and examine how process ambidexterity, which comprises operational flexibility and operational routine, responds to environmental uncertainty and ultimately reduces organisational risks.Design/methodology/approachThis study tests the hypotheses by analysing 464 annual reports of 115 listed companies in the Chinese agricultural and food industry using content and secondary data analyses. Four case studies are also provided.FindingsThe results show that (1) environmental uncertainty has a positive effect on either operational flexibility or operational routine; (2) both operational flexibility and operational routine have negative effects on organisational risks, supporting the view that process ambidexterity mediates the relationship between environmental uncertainty and organisational risks; and (3) organisational slack plays the role of “double-edged sword” by negatively moderating the effect of environmental uncertainty on operational flexibility and positively moderating the effect of environmental uncertainty on operational routine.Originality/valueIn an uncertain environment, companies are exposed to greater risk. This study contributes to risk management in three ways: first, it extends ambidexterity theory to process management and proposes how process ambidexterity balances operational flexibility and routines. Second, it distinguishes between the different conditions under which flexibility or routines are superior. Third, it explains the mechanisms related to how organisations can resolve environmental uncertainty into risk through process ambidexterity.

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“…Several factors, including quality and safety certification, green supplier evaluation and selection, marketing channel management, and government regulation, can influence the quality behavior of participants in the agri-food supply chain [28][29][30][31]. In a two-echelon decision-making model consisting of a loss-averse farmer and a loss-neutral company, Fu et al [32] found that a high guaranteed price decided by the company can reduce the losses of farmers caused by price uncertainty; however, such pricing may breed laziness among the farmers in sustainable agricultural practice and reduce their activeness in supplying agri-foods. As an important indicator of the quality of fresh produce, freshness preservation also influences the quality of agri-foods and revenue of participants [33].…”

Section: Relevant Literature Reviewmentioning

confidence: 99%

Quality Decision-Making Behavior of Bodies Participating in the Agri-Foods E-Supply Chain

Panqian

2020

Sustainability

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The quality of agri-foods in e-supply chains confronts more threats than that in the traditional agri-food supply chain. However, most of the existing studies focusing on the quality problems of fresh agri-products are mainly cases studies and statistical analyses, and they do not take into account the farmers’ willingness to comply with safe agri-food supply procedures. To solve the supply quality problems of fresh agri-foods and help participators make a better choice, the decision-making behavior on the supply quality of agri-foods in the e-supply chain was deeply studied in this paper using game theory. Some factors related to the decision behavior of the supply chain were analyzed, including the supervision intension of the government, the rights protection consciousness of consumers, and the intensity of punishment for poor-quality agri-foods. These factors have an important influence on the farmers’ willingness to provide high-quality products and e-business’ probability of inspection. Compared with three different decision models of agri-food e-supply chains, the results show that the decentralized decision model is better than the centralized model from the view of quality protection. The behavior of members of the supply chain is as follows: the farmers’ willingness to supply high-quality agri-foods increases with the increase in the consumers’ consciousness of their rights and the government’s supervision intensity. The “experience deviation” phenomenon also occurs when a new e-business makes a decision about its quality inspection behavior in this e-supply chain where the quality information is traceable. As such, e-business enterprises should reduce their quality inspection behavior based on the increase in the government’s supervision intensity. This happens to be opposite to the traditional experience where quality information is not traceable. This study not only extends the research framework of the novel electronic supply chain, but also provides a certain reference for the subsequent research and e-business practices of fresh produce in developing countries.

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Weather Risk–Reward Contract for Sustainable Agri-Food Supply Chain with Loss-Averse Farmer

Cited by 13 publications

References 30 publications

Links Between Risk Source Identification and Resilience Capability Building in Agri-Food Supply Chains: A Comprehensive Analysis

Links Between Risk Source Identification and Resilience Capability Building in Agri-Food Supply Chains: A Comprehensive Analysis

Process ambidexterity driven by environmental uncertainty: balancing flexibility and routine

Quality Decision-Making Behavior of Bodies Participating in the Agri-Foods E-Supply Chain

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