IDEAS home Printed from https://ideas.repec.org/a/spr/agfoec/v3y2015i1p1-1610.1186-s40100-014-0024-z.html
   My bibliography  Save this article

Case study analysis on supplier commitment to added value agri-food supply chains in New Zealand

Author

Listed:
  • Nic Lees
  • Peter Nuthall

Abstract

This research identifies what attracts suppliers to be committed to long-term relationships in New Zealand agri-food supply chains where suppliers are required to consistently deliver to high product specifications. It also looks at what factors determine supplier’s ongoing commitment and how to build strong enduring supply chain relationships. Semi structured interviews were undertaken with suppliers from New Zealand agri-food exporting companies. The main factors that attracted suppliers to these supply chains were; increased price certainty, premium prices and relationship quality. Many suppliers wanted to break away from the agricultural commodity cycle, which they saw as disconnected from customer demand, and characterised by price volatility. They saw themselves as better than average producers with the ability to produce high quality products. They valued the relationship with the companies they supplied as this gave them access to premium markets where they felt they would be rewarded for their effort. There was a high level of trust in these relationships and this was built on openness and transparency in communications and confidence in the character of the company personnel. The success of differentiated agri-food supply chains requires capable and committed suppliers. Companies that are developing a differentiated strategy need to identify suppliers who have the ability to produce high quality products and want to be involved in a customer focused supply chain enables them to access to premium markets. Copyright Lees and Nuthall; licensee Springer. 2015

Suggested Citation

  • Nic Lees & Peter Nuthall, 2015. "Case study analysis on supplier commitment to added value agri-food supply chains in New Zealand," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-16, December.
  • Handle: RePEc:spr:agfoec:v:3:y:2015:i:1:p:1-16:10.1186/s40100-014-0024-z
    DOI: 10.1186/s40100-014-0024-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1186/s40100-014-0024-z
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1186/s40100-014-0024-z?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. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Fynes, Brian & Voss, Chris & de Burca, Sean, 2005. "The impact of supply chain relationship quality on quality performance," International Journal of Production Economics, Elsevier, vol. 96(3), pages 339-354, June.
    3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    4. Christian Fischer & Monika Hartmann & Nikolai Reynolds & Philip Leat & César Revoredo-Giha & Maeve Henchion & Luis Miguel Albisu & Azucena Gracia, 2009. "Factors influencing contractual choice and sustainable relationships in European agri-food supply chains," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 541-569, December.
    5. Bart Nooteboom & Gjalt De Jong & Robert Vossen & Susan Helper & Mari Sako, 2000. "Network Interactions And Mutual Dependence: A Test In The Car Industry," Industry and Innovation, Taylor & Francis Journals, vol. 7(1), pages 117-144.
    6. Lai, Kee-hung & Cheng, T.C.E. & Yeung, A.C.L., 2005. "Relationship stability and supplier commitment to quality," International Journal of Production Economics, Elsevier, vol. 96(3), pages 397-410, June.
    7. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    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. Hobbs, J., 2018. "Transaction Costs, Institutions and the Organization of Supply Chains: Three Good Questions," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277411, International Association of Agricultural Economists.
    2. Graham, Penny & Baker, Derek & Griffith, Garry, 2021. "Relationship Quality in a Lamb Production Network," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 29(5), December.
    3. Shuo Gao & Ming Kim Lim & Renlu Qiao & Chensi Shen & Chentao Li & Li Xia, 2022. "Identifying critical failure factors of green supply chain management in China’s SMEs with a hierarchical cause–effect model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5641-5666, April.
    4. Lees, Nic & Nuthall, Peter & Wilson, Mark M.J., 2020. "Relationship quality and supplier performance in food supply chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    5. Gyula Kasza & Judit Oláh & József Popp & Zoltán Lakner & László Fekete & Enikő Pósa & Widya Satya Nugraha & Dávid Szakos, 2024. "Food miles on the shelves: the share of local food products in the Hungarian retail sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 12(1), pages 1-24, December.

    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. Lo, Fang-Yi, 2015. "Transaction cost determinants and advantage transferability's effect on international ownership strategy," Journal of Business Research, Elsevier, vol. 68(11), pages 2312-2316.
    2. Xiaoqing Li & Yu Zheng & Catherine L. Wang, 2016. "Inter-firm collaboration in new product development in Chinese pharmaceutical companies," Asia Pacific Journal of Management, Springer, vol. 33(1), pages 165-193, March.
    3. Patrizia Fanasch, 2019. "Survival of the fittest: The impact of eco‐certification and reputation on firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 611-628, May.
    4. Sharma, Sunil, 2015. "Relevance of Resource Based View Themes for Capability Evolution," IIMA Working Papers WP2015-03-30, Indian Institute of Management Ahmedabad, Research and Publication Department.
    5. Manuel Gonzalez-Diaz & Marta Fernandez Barcala & Benito Arrunada, 2003. "Quality assurance mechanisms in agrifood: the case of the Spanish fresh meat sector," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 2(3/4), pages 361-382.
    6. Laaksonen, Toni & Jarimo, Toni & Kulmala, Harri I., 2009. "Cooperative strategies in customer-supplier relationships: The role of interfirm trust," International Journal of Production Economics, Elsevier, vol. 120(1), pages 79-87, July.
    7. Cholez, Celia & Magrini, Marie-Benoit & Galliano, Danielle, 2016. "Technical knowledge and production contracts between a company and its suppliers: lessons from a French case-study," 149th Seminar, October 27-28, 2016, Rennes, France 244775, European Association of Agricultural Economists.
    8. Tate, Wendy L. & Ellram, Lisa M. & Bals, Lydia & Hartmann, Evi, 2009. "Offshore outsourcing of services: An evolutionary perspective," International Journal of Production Economics, Elsevier, vol. 120(2), pages 512-524, August.
    9. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    10. Leo Sleuwaegen & Peter M. Smith, 2021. "Service characteristics and the choice between exports and FDI: Evidence from Belgian firms," International Economics, CEPII research center, issue 168, pages 115-131.
    11. Alain Verbeke & Vincent Tung, 2013. "The Future of Stakeholder Management Theory: A Temporal Perspective," Journal of Business Ethics, Springer, vol. 112(3), pages 529-543, February.
    12. Binder, Mario & Clegg, Ben, 2007. "Enterprise management: A new frontier for organisations," International Journal of Production Economics, Elsevier, vol. 106(2), pages 409-430, April.
    13. Mohammad Moshtari & Evelyne Vanpoucke, 2021. "Building Successful NGO–Business Relationships: A Social Capital Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 104-129, July.
    14. Liu, Wei-hua & Xie, Dong & Xu, Xue-cai, 2013. "Quality supervision and coordination of logistic service supply chain under multi-period conditions," International Journal of Production Economics, Elsevier, vol. 142(2), pages 353-361.
    15. Weseen, Simon & Hobbs, Jill & Kerr, William A., 2014. "Reducing Hold-up Risks in Ethanol Supply Chains: A Transaction Cost Perspective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-24, May.
    16. Patrick Gianfaldoni, 2019. "Économie sociale d'entreprise versus Économie sociale politique : Un cheminement théorique," Post-Print hal-03555831, HAL.
    17. Jung-sik Hong & Hyeongyu Yeo & Nam-Wook Cho & Taeuk Ahn, 2018. "Identification of Core Suppliers Based on E-Invoice Data Using Supervised Machine Learning," JRFM, MDPI, vol. 11(4), pages 1-13, October.
    18. Setene, Letlama & Jordaan, Daniel du P.S., 2021. "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    19. Stephen Standifird & Marc Weinstein, 2007. "The Transaction Cost Economics of Market-based Exchange: The Impact of Reputation and External Verification Agencies," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(3), pages 409-431.
    20. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.

    More about this item

    Keywords

    Q13; Supplier relationships; Commitment; Trust; New Zealand; Competitive advantage; Resource based view; Social capital;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    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:spr:agfoec:v:3:y:2015:i:1:p:1-16:10.1186/s40100-014-0024-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.