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Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry

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  • Ding, Huiping
  • Fu, Yanan
  • Zheng, Lucy
  • Yan, Zhu

Abstract

In this study, we use an evidence-based approach to examine the factors that determine the competitive advantage of dairy supply chains using evidence from the Chinese dairy industry. We focus on the quality assurance of dairy products, which is considered one of the fundamental influential factors. We investigate interrelationships among the identified determinants, which include dairy production behavior, dairy cow culture model, government regulations, corporate social responsibility, and quality assurance, and examine how these determinants influence the competitive advantage of dairy supply chains. We employ the structural equation modeling approach in which grouped observable variables that represent the identified determinants are extrapolated from primary data collected through a questionnaire survey. Our key findings show that by mediating the effects of dairy production behavior and the dairy cow culture model, government regulation and corporate social responsibility significantly affect the quality assurance of dairy products. In turn, dairy production behavior and the dairy cow culture model significantly affect the competitive advantage of the dairy supply chain via the fully mediated effects of the quality assurance of dairy products. Specifically, the dairy cow culture model helps ensure the safety and quality of milk supply, allowing core dairy firms to control product quality throughout the dairy supply chain. Our empirical study shows that the identified determinants interact to assure the quality of dairy products and enhance the competitive advantage of the dairy supply chain in China.

Suggested Citation

  • Ding, Huiping & Fu, Yanan & Zheng, Lucy & Yan, Zhu, 2019. "Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 360-373.
    • Handle: RePEc:eee:proeco:v:209:y:2019:i:c:p:360-373
    DOI: 10.1016/j.ijpe.2018.02.013
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    4. Zizhong Shi & Junru Li & Xiangdong Hu, 2023. "From Large to Powerful: International Comparison, Challenges and Strategic Choices for China’s Livestock Industry," Agriculture, MDPI, vol. 13(7), pages 1-21, June.
    5. Xu Jing & Yao Guanxin & Dai Panqian, 2020. "Quality Decision-Making Behavior of Bodies Participating in the Agri-Foods E-Supply Chain," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    6. Yongbo Li & Ali Diabat & Chung-Cheng Lu, 2020. "Leagile supplier selection in Chinese textile industries: a DEMATEL approach," Annals of Operations Research, Springer, vol. 287(1), pages 303-322, April.
    7. Kazancoglu, Yigit & Sagnak, Muhittin & Mangla, Sachin Kumar & Sezer, Muruvvet Deniz & Pala, Melisa Ozbiltekin, 2021. "A fuzzy based hybrid decision framework to circularity in dairy supply chains through big data solutions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    8. Szilvia Botos & Róbert Szilágyi & János Felföldi & Mihály Tóth, 2020. "Readiness for ICT Based B2C Information Flow – Case Study of the Hungarian Food Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(2), June.
    9. Liu, Hongda & Huang, Feipeng & Huang, Jialiang, 2022. "Measuring the coordination decision of renewable energy as a natural resource contracts based on rights structure and corporate social responsibility from economic recovery," Resources Policy, Elsevier, vol. 78(C).

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