IDEAS home Printed from https://ideas.repec.org/a/eme/caerpp/v1y2009i2p136-154.html
   My bibliography  Save this article

A conceptual framework for supply chain governance

Author

Listed:
  • Xiaoyong Zhang
  • Lusine H. Aramyan

Abstract

Purpose - Chinese agri‐food chains consist of the millions of small scale farmers, who are not well structured and organized in the supply chain. Owing to market liberalization and globalization, one of the most challenging issues along agri‐food chains in China is becoming the issue of how to link these small‐scale farmers into the modern chains. Consequently, it is essential for both policy makers and private sectors to understand the governance structure in agri‐food supply chains. Therefore, the purpose of this paper is to develop a theoretical framework for supply chain governance, including its antecedents and consequences, as well as a series of hypotheses for empirical testing. Design/methodology/approach - A conceptual framework of chain governance is proposed in this study, where governance structure consists of two dimensions: contractual governance and relational governance. The study intends to propose a complementary relationship between contracts and relational aspects, such as trust, in the Chinese context. Future research is needed to empirically test this model. Findings - The proposed conceptual model is unique, since the majority of the articles addressing this topic focuses on contract farming while limited research touches upon the issues of trust and relations. However, a combination of both contracting and relationships are seldom addressed. Originality/value - This paper evaluates a novel concept of two dimensional governance structure in the agri‐food supply chain, where transaction cost economics theory and relational theory are combined to study the governance relationships between small scale producers in China and their buyers.

Suggested Citation

  • Xiaoyong Zhang & Lusine H. Aramyan, 2009. "A conceptual framework for supply chain governance," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 136-154, January.
    • Handle: RePEc:eme:caerpp:v:1:y:2009:i:2:p:136-154
    DOI: 10.1108/17561370910927408
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17561370910927408/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/17561370910927408/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/17561370910927408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Porter, Gina & Phillips-Howard[malt], Kevin, 1997. "Comparing contracts: An evaluation of contract farming schemes in Africa," World Development, Elsevier, vol. 25(2), pages 227-238, February.
    2. Fritz, Melanie & Fischer, Christian, 2007. "The Role of Trust in European Food Chains: Theory and Empirical Findings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-24.
    3. Sartorius, Kurt & Kirsten, Johann, 2007. "A framework to facilitate institutional arrangements for smallholder supply in developing countries: An agribusiness perspective," Food Policy, Elsevier, vol. 32(5-6), pages 640-655.
    4. Masakure, Oliver & Henson, Spencer, 2005. "Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe," World Development, Elsevier, vol. 33(10), pages 1721-1733, October.
    5. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    6. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    7. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-18.
    8. Han, Jiqin & Omta, S.W.F. (Onno) & Trienekens, Jacques H., 2007. "The Joint Impact of Supply Chain Integration and Quality Management on the Performance of Pork Processing Firms in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(2), pages 1-32.
    9. Allen, Douglas & Lueck, Dean, 1992. "Contract Choice in Modern Agriculture: Cash Rent versus Cropshare," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 397-426, October.
    10. Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255, Elsevier.
    11. Dennis R. Henderson, 1994. "Measuring and Assessing Vertical Ties in the Agro-food System," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(4), pages 549-560, December.
    12. Klein, Benjamin, 1980. "Transaction Cost Determinants of "Unfair" Contractual Arrangements," American Economic Review, American Economic Association, vol. 70(2), pages 356-362, May.
    13. repec:bla:devpol:v:22:y:2004:i::p:557-586 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pietro Cunha Dolci & Antonio Carlos Gastaud Maçada, 2014. "Information technology investments and supply chain governance," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 18(2), pages 217-235.
    2. Pfaff, Yuko Melanie & Birkel, Hendrik & Hartmann, Evi, 2023. "Supply chain governance in the context of industry 4.0: Investigating implications of real-life implementations from a multi-tier perspective," International Journal of Production Economics, Elsevier, vol. 260(C).
    3. Jun He & Kun Liang & Peng Wu, 2022. "Stability Governance of E-commerce Supply Chain: Social Capital and Governance Mechanism Design Perspective," Sustainability, MDPI, vol. 14(20), pages 1-17, October.
    4. Lucas Oliveira de Sousa & Marcelo Dias Paes Ferreira & Marcus Mergenthaler, 2018. "Agri-Food Chain Establishment as a Means to Increase Sustainability in Food Systems: Lessons from Sunflower in Brazil," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    5. Marianne Hubeau & Fleur Marchand & Guido Van Huylenbroeck, 2017. "Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success," Sustainability, MDPI, vol. 9(6), pages 1-23, June.
    6. Leat, Philip M.K. & Lamprinopoulou-Kranis, Chrysa & Revoredo-Giha, Cesar & Kupiec-Teahan, Beata, 2011. "Agri-food supply chains and sustainability-related issues: evidence from across the Scottish agri-food economy," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108952, Agricultural Economics Society.
    7. Gumataw Kifle Abebe, 2020. "Effects of institutional pressures on the governance of food safety in emerging food supply chains: a case of Lebanese food processors," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1125-1138, December.
    8. Ebru Seckin, 2013. "The comparison in terms of trust of modern and traditional supply chains in fresh fruit and vegetable," ERSA conference papers ersa13p388, European Regional Science Association.
    9. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Calum G. Turvey & Rong Kong, 2009. "Business and financial risks of small farm households in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 155-172, January.
    2. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    3. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.
    5. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    6. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    7. Bryan W. Husted & Robert Folger, 2004. "Fairness and Transaction Costs: The Contribution of Organizational Justice Theory to an Integrative Model of Economic Organization," Organization Science, INFORMS, vol. 15(6), pages 719-729, December.
    8. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    9. Mungandi, Sepiso & Conforte, Daniel & Shadbolt, Nicola M., 2012. "Integration of Smallholders in Modern Agri-food Chains: Lessons from the KASCOL Model in Zambia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-22, September.
    10. Vroegindewey, Ryan & Theriault, Veronique & Staatz, John, 2015. "A Framework for Analyzing Coordination in African Agricultural Value Chains," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205327, Agricultural and Applied Economics Association.
    11. Vanesa Solís-Rodríguez & Manuel González-Díaz, 2017. "Differences in contract design between successful and less successful franchises," European Journal of Law and Economics, Springer, vol. 44(3), pages 483-502, December.
    12. Thomas Kopp & Ashok K. Mishra, 2022. "Perishability and market power in Nepalese food crop production," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 518-540, June.
    13. repec:oup:apecpp:v:40:y:2018:i:3:p:353-378. is not listed on IDEAS
    14. Henningsen, Arne & Mpeta, Daniel F. & Adem, Anwar S. & Kuzilwa, Joseph A. & Czekaj, Tomasz G., 2015. "The Effects of Contract Farming on Efficiency and Productivity of Small-Scare Sunflower Farmers in Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212478, International Association of Agricultural Economists.
    15. Tamura, Yu, 2021. "Contexts behind differentiated responses to contract farming and large-scale land acquisitions in Central Mozambique: Post-war experiences, social relations, and power balance of local authorities," Land Use Policy, Elsevier, vol. 106(C).
    16. Rui Fragoso, 2013. "Planning Marketing Channels: Case of the Olive Oil Agribusiness in Portugal," CEFAGE-UE Working Papers 2013_07, University of Evora, CEFAGE-UE (Portugal).
    17. Isaac Maina Kariuki & Jens‐Peter Loy, 2016. "Contractual Farming Arrangements, Quality Control, Incentives, and Distribution Failure in Kenya's Smallholder Horticulture: A Multivariate Probit Analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 547-562, November.
    18. Fanny Widadie & Jos Bijman & Jacques Trienekens, 2022. "Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    19. Ola, Oreoluwa & Menapace, Luisa, 2020. "Smallholders' perceptions and preferences for market attributes promoting sustained participation in modern agricultural value chains," Food Policy, Elsevier, vol. 97(C).
    20. Iffat Abbas Abbasi & Hasbullah Ashari & Amin Jan & Ahmad Shabudin Ariffin, 2021. "Contract Farming towards Social Business: A New Paradigm," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    21. Xiaoyong Zhang & Dinghuan Hu, 2011. "Farmer-buyer relationships in China: the effects of contracts, trust and market environment," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 42-53, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:1:y:2009:i:2:p:136-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.