IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i19p10815-d646036.html
   My bibliography  Save this article

The Dynamics of Brand-Driven Quality Improvement Decision-Making in Multi-Small-Supplier Agri-Food Supply Chain: The Case of China

Author

Listed:
  • Jing Mu

    (Food Supply Chain Research Institute, Tianjin University of Science and Technology, Tianjing 300457, China)

  • Jing Li

    (School of Economics and Management, Tianjin University of Science and Technology, Tianjing 300457, China)

  • Yaze Li

    (School of Economics and Management, Tianjin University of Science and Technology, Tianjing 300457, China)

  • Chao Liu

    (Food Supply Chain Research Institute, Tianjin University of Science and Technology, Tianjing 300457, China)

Abstract

This paper develops a system dynamics framework for the closed-loop agri-food brand supply chain (AFBSC) with multiple small farmer suppliers and one core brand manufacturer, and investigates the influences of various factors including brand effort, quality elasticity, price elasticity, revenue sharing, and the number of suppliers on the system behavior. The results show: (i) food quality is determined by all farmer suppliers, who might choose hitchhiking with the prisoner’s dilemma game in a decentralized decision-making mode; (ii) brand effort to improve brand value for food quality is mainly made by the core brand manufacturer, who presents a goal-seeking system dynamics (SD) manner with oscillation behavior around the expected quality of consumers; (iii) whether farmer suppliers or brand manufacturers, the centralized decision-making mode is more useful for them to increase revenue than the decentralized one; furthermore, the shared centralized decision-making mode is most useful for them to obtain more revenue, and the brand manufacturer is still the biggest beneficiary.

Suggested Citation

  • Jing Mu & Jing Li & Yaze Li & Chao Liu, 2021. "The Dynamics of Brand-Driven Quality Improvement Decision-Making in Multi-Small-Supplier Agri-Food Supply Chain: The Case of China," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10815-:d:646036
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/19/10815/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/19/10815/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chunyan Gao & T.C. Edwin Cheng & Houcai Shen & Liang Xu, 2016. "Incentives for quality improvement efforts coordination in supply chains with partial cost allocation contract," International Journal of Production Research, Taylor & Francis Journals, vol. 54(20), pages 6216-6231, October.
    2. Peng, Yala & Li, Jiajie & Xia, Hui & Qi, Siyuan & Li, Jianhong, 2015. "The effects of food safety issues released by we media on consumers’ awareness and purchasing behavior: A case study in China," Food Policy, Elsevier, vol. 51(C), pages 44-52.
    3. Murat Kaya & Özalp Özer, 2009. "Quality risk in outsourcing: Noncontractible product quality and private quality cost information," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(7), pages 669-685, October.
    4. Alexander E. Saak, 2012. "Collective Reputation, Social Norms, and Participation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 763-785.
    5. Yan Dong & Kefeng Xu & Yi Xu & Xiang Wan, 2016. "Quality Management in Multi-Level Supply Chains with Outsourced Manufacturing," Production and Operations Management, Production and Operations Management Society, vol. 25(2), pages 290-305, February.
    6. Pio Baake & Vanessa Schlippenbach, 2011. "Quality distortions in vertical relations," Journal of Economics, Springer, vol. 103(2), pages 149-169, June.
    7. Krystyna Stave & Birgit Kopainsky, 2015. "A system dynamics approach for examining mechanisms and pathways of food supply vulnerability," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 5(3), pages 321-336, September.
    8. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    9. Yi He & Qingyun Xu & Bing Xu & Pengkun Wu, 2016. "Supply chain coordination in quality improvement with reference effects," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(9), pages 1158-1168, September.
    10. Hsieh, Chung-Chi & Liu, Yu-Te, 2010. "Quality investment and inspection policy in a supplier-manufacturer supply chain," European Journal of Operational Research, Elsevier, vol. 202(3), pages 717-729, May.
    11. Olafsdottir, Anna Hulda & Gudbrandsdottir, Ingunn & Sverdrup, Harald U. & Bogason, Sigurdur G. & Olafsdottir, Gudrun & Stefansson, Gunnar, 2018. "Applying System Analysis and System Dynamics Modelling In Complex Research Projects - The Case Of VALUMICS," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276883, International European Forum on System Dynamics and Innovation in Food Networks.
    12. Gary H. Chao & Seyed M. R. Iravani & R. Canan Savaskan, 2009. "Quality Improvement Incentives and Product Recall Cost Sharing Contracts," Management Science, INFORMS, vol. 55(7), pages 1122-1138, July.
    13. Joshua Aboah & Mark M.J. Wilson & Kathryn Bicknell & Karl M. Rich, 2021. "Identifying the precursors of vulnerability in agricultural value chains: A system dynamics approach," International Journal of Production Research, Taylor & Francis Journals, vol. 59(3), pages 683-701, February.
    14. Trienekens, Jacques H., 2011. "Agricultural Value Chains in Developing Countries A Framework for Analysis," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-32, May.
    15. Yoo, Seung Ho & Cheong, Taesu, 2018. "Quality improvement incentive strategies in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 331-342.
    16. Rong, Aiying & Akkerman, Renzo & Grunow, Martin, 2011. "An optimization approach for managing fresh food quality throughout the supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 421-429, May.
    17. Shotaro Minegishi & Daniel Thiel, 2000. "System dynamics modeling and simulation of a particular food supply chain," Post-Print hal-02158574, HAL.
    Full references (including those not matched with items on IDEAS)

    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. Yoo, Seung Ho & Cheong, Taesu, 2018. "Quality improvement incentive strategies in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 331-342.
    2. Zhang, Manman & Zhang, Juliang & Sun, Yue & Cheng, T.C.E., 2022. "How to outsource production considering quality management: Turnkey or buy-sell?," Omega, Elsevier, vol. 113(C).
    3. Yunjuan Liang & Xin Liang & Hua Wei, 2023. "Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    4. Prasenjit Mandal & Tarun Jain & Abhishek Chakraborty, 2021. "Quality collaboration contracts under product pricing strategies," Annals of Operations Research, Springer, vol. 302(1), pages 231-264, July.
    5. Xie, Gang & Wang, Shouyang & Lai, K.K., 2011. "Quality improvement in competing supply chains," International Journal of Production Economics, Elsevier, vol. 134(1), pages 262-270, November.
    6. Xiao, Wei & Li, Kai & Fu, Hong, 2021. "Quality investment in a decentralized assembly system with backward shareholding," International Journal of Production Economics, Elsevier, vol. 242(C).
    7. Seung Ho Yoo & Dawoon Jung & Kun Soo Park, 2022. "Product design outsourcing in a supply chain: impact of the design and conformance quality trade-off," Operational Research, Springer, vol. 22(4), pages 4029-4055, September.
    8. EuiBeom Jeong & GeunWan Park & Seung Ho Yoo, 2019. "Incentive Mechanism for Sustainable Improvement in a Supply Chain," Sustainability, MDPI, vol. 11(13), pages 1-18, June.
    9. Fan, Jianchang & Ni, Debing & Fang, Xiang, 2020. "Liability cost sharing, product quality choice, and coordination in two-echelon supply chains," European Journal of Operational Research, Elsevier, vol. 284(2), pages 514-537.
    10. Hongyu Wang & Xiaolei Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluating the Impacts of Smallholder Farmer’s Participation in Modern Agricultural Value Chain Tactics for Facilitating Poverty Alleviation—A Case Study of Kiwifruit Industry in Shaanxi, China," Agriculture, MDPI, vol. 11(5), pages 1-19, May.
    11. Susana López‐Bayón & Marta Fernández‐Barcala & Manuel González‐Díaz, 2020. "In search of agri‐food quality for wine: Is it enough to join a geographical indication?," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 568-590, October.
    12. He, Yi & Wang, Hang & Guo, Qiang & Xu, Qingyun, 2019. "Coordination through cooperative advertising in a two-period consumer electronics supply chain," Journal of Retailing and Consumer Services, Elsevier, vol. 50(C), pages 179-188.
    13. Olafsdottir, Anna Hulda & Gudbrandsdottir, Ingunn & Sverdrup, Harald U. & Bogason, Sigurdur G. & Olafsdottir, Gudrun & Stefansson, Gunnar, 2018. "System Dynamics Modelling and System Analysis Applied in Complex Research Projects - the Case of VALUMICS," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(5), December.
    14. Mariah Dolsen Ehmke & Alessandro Bonanno & Kathryn Boys & Trenton G. Smith, 2019. "Food fraud: economic insights into the dark side of incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 685-700, October.
    15. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    16. Ningzhou Shen & Yinghua Song & Dan Liu & Dalia Streimikiene, 2021. "Food Quality Competition Among Companies and Government Food Safety Supervision Under Asymmetric Product Substitution," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 221-221, February.
    17. Tzavara Dionisia & Heritier Adrienne, 2012. "Quality and Environmental Regulation: Verifying Compliance along the Supply Chain," Business and Politics, De Gruyter, vol. 14(2), pages 1-24, August.
    18. Li, Huashan & Bapuji, Hari & Talluri, Srinivas & Singh, Prakash J., 2022. "A Cross-disciplinary review of product recall research: A stakeholder-stage framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    19. McGarraghy, Seán & Olafsdottir, Gudrun & Kazakov, Rossen & Huber, Élise & Loveluck, William & Gudbrandsdottir, Ingunn Y. & Čechura, Lukáš & Esposito, Gianandrea & Samoggia, Antonella & Aubert, Pierre-, 2022. "Conceptual system dynamics and agent-based modelling simulation of interorganisational fairness in food value chains: Research agenda and case studies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(2).
    20. Guilan Yan & Yi He, 2020. "Coordinating pricing and advertising in a two-period fashion supply chain," 4OR, Springer, vol. 18(4), pages 419-438, December.

    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:gam:jsusta:v:13:y:2021:i:19:p:10815-:d:646036. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.