IDEAS home Printed from https://ideas.repec.org/p/ags/eaae08/44066.html
   My bibliography  Save this paper

Co-operation and economic relationship as determinants for competitiveness in the food sector: the Spanish wheat to bread chain

Author

Listed:
  • de Magistris, Tiziana
  • Gracia, Azucena

Abstract

The objective of the paper is to investigate the impact of co-operation amongst stakeholders of the food chain on enterprise competitiveness. The analysis focuses on the Spanish wheat to bread chain. A theoretical model is developed which covers the main components that define competitiveness (profitability, turnover, market share, customer loyalty and product quality), quality supply chain relationship (trust, commitment and satisfaction) and the main factors explaining supply chain relationship (i.e. quality and frequency of the communication, personal bounds, etc.). The Spanish wheat to bread supply chain has been chosen to empirically test the model. This sector is very fragmented all along the chain, with a high number of wheat farmers, millers and bakers. Exchanges in the sector are mainly done in the open market but there is an increasing tendency to maintain stable relationships with suppliers to assure quality. Therefore, stakeholders in the wheat to bread chain are mainly using two types of economic relationships: “repeated market transactions” and “spot market” but the former is by far the most used. Based on data from a standardised survey with farmers, processors and retailers a structural equation modelling approach has been applied to empirically test the influence of relationship quality on stakeholders’ competitiveness in the Spanish wheat to bread chain. The main conclusion of the study is that, as the quality of the relationship in the Spanish wheat to bread chain improves the stakeholder’ competitiveness increases. The results also reveal that quality of the relationship in the Spanish wheat to bread chain is based on trust, satisfaction and commitment with buyers/sellers and strongly influenced by communication quality and quantity. In addition, the outcome shows that the quality of communication has an indirect positive effect on stakeholders’ competitiveness through the relationship quality. Finally, the only factor that will influence the quality of the relationship is the equal power distribution along the chain. Moreover, personal bounds positively influence the quality of communication in the bread Spanish supply chain.

Suggested Citation

  • de Magistris, Tiziana & Gracia, Azucena, 2008. "Co-operation and economic relationship as determinants for competitiveness in the food sector: the Spanish wheat to bread chain," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44066, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44066
    DOI: 10.22004/ag.econ.44066
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/44066/files/314.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.44066?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
    ---><---

    References listed on IDEAS

    as
    1. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    2. Thomas Hatzichronoglou, 1996. "Globalisation and Competitiveness: Relevant Indicators," OECD Science, Technology and Industry Working Papers 1996/5, OECD Publishing.
    3. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-19.
    4. Larry Martin & Randall Westgren & Erna van Duren, 1991. "Agribusiness Competitiveness across National Boundaries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(5), pages 1456-1464.
    5. Linda M. Young & Jill E. Hobbs, 2002. "Vertical Linkages in Agri-Food Supply Chains: Changing Roles for Producers, Commodity Groups, and Government Policy," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 428-441.
    6. Lages, Carmen & Lages, Cristiana Raquel & Lages, Luis Filipe, 2005. "The RELQUAL scale: a measure of relationship quality in export market ventures," Journal of Business Research, Elsevier, vol. 58(8), pages 1040-1048, August.
    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. Oriana Gava & Francesca Galli & Fabio Bartolini & Gianluca Brunori, 2018. "Linking Sustainability with Geographical Proximity in Food Supply Chains. An Indicator Selection Framework," Agriculture, MDPI, vol. 8(9), pages 1-22, August.

    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. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    2. Lees, Nic J. & Nuthall, P.L. & Wilson, M.M.J., 2016. "The impact of relationship quality on supplier performance in New Zealand agri-food supply chains," 26th International Food and Agribusiness Management Association (IFAMA) World Forum, 2016, Aarhus, Denmark 273035, International Food and Agribusiness Management Association (IFAMA).
    3. 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.
    4. Małgorzata Juchniewicz & Katarzyna Łukiewska, 2021. "Diversity of the international competitive performance of the food industry of the European Union member states," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 422-437, April.
    5. Zrinka Režić Tolj & Lucijana Leoni & Jasenka Maslek, 2016. "E-Learning of Foreign Languages at the University of Dubrovnik, Experiences and Attitudes of Users," European Journal of Social Sciences Education and Research Articles, Revistia Research and Publishing, vol. 3, ejser_v3_.
    6. Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ,Jason Daniel & Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ, 2015. "Transport infrastructure and welfare : an application to Nigeria," Policy Research Working Paper Series 7271, The World Bank.
    7. Hooks Teresa & Macken-Walsh Áine & McCarthy Olive & Power Carol & Henchion Maeve, 2018. "Co-Operation among Irish Beef Farmers: Current Perspectives and Future Prospects in the Context of New Producer Organisation (PO) Legislation," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    8. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Lips, Markus & Gazzarin, Christian, 2008. "What are the preferences of Dairy Farmers regarding their Work? A Discrete Choice Experiment in the Eastern Part of Switzerland," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44132, European Association of Agricultural Economists.
    10. Götz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2010. "What makes countries initiate WTO disputes on food-related issues?," Food Policy, Elsevier, vol. 35(2), pages 154-162, April.
    11. Mogaka, Violet Moraa & Mbatia, O.L.E. & Nzuma, Jonathan M., 2012. "Feasibility of Biofuel Production in Kenya: The Case of Jatropha," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126427, International Association of Agricultural Economists.
    12. Katona-Kovacs, Judit & Dax, Thomas, 2008. "Sustainable Rural Development in Environmentally Protected Areas of Hungary and Austria: The Role of CAP payments," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44438, European Association of Agricultural Economists.
    13. Bulut, Harun & Lawrence, John D., 2007. "Meat Slaughter and Processing Plants’ Traceability Levels Evidence From Iowa," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37576, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    14. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    15. Nilsson, Jerker & Helgesson, Matilda & Rommel, Jens & Svensson, Ellinor, 2020. "Forest-owner support for their cooperative's provision of public goods," Forest Policy and Economics, Elsevier, vol. 115(C).
    16. James, Jennifer S. & Pardey, Philip G. & Alston, Julian M., 2008. "Agricultural R&D Policy: A Tragedy of the International Commons," Staff Papers 43094, University of Minnesota, Department of Applied Economics.
    17. Gebrezgabher, Solomie A. & Meuwissen, Miranda P.M. & Oude Lansink, Alfons G.J.M., 2010. "Costs of Producing Biogas at Dairy Farms in The Netherlands," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(1), pages 1-10.
    18. Franco, Juan Agustin & Calatrava-Requena, Javier, 2008. "Adoption and diffusion of no tillage practices in Southern Spain olive groves," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44014, European Association of Agricultural Economists.
    19. Lowe, Garfield G. & Davis, Carlton George, 2007. "CARICOM’s COMPETITIVENESS WITHIN THE US IMPORT MARKET FOR SPECIALTY CROPS: A SHIFT-SHARE ANALYSIS," 26th West Indies Agricultural Economics Conference, July 2006, San Juan, Puerto Rico 36922, Caribbean Agro-Economic Society.
    20. Zur, Andrew & Leckie, Civilai & Webster, Cynthia M., 2012. "Cognitive and affective trust between Australian exporters and their overseas buyers," Australasian marketing journal, Elsevier, vol. 20(1), pages 73-79.

    More about this item

    Keywords

    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:ags:eaae08:44066. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    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.