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Power, supply chain integration and quality performance of agricultural products: evidence from contract farming in China

Fu, Shaoling; Zhan, Yuanzhu; Ouyang, Jun; Ding, Yalan; Tan, Kim Hua; Fu, Lingmei

Authors

Shaoling Fu

Yuanzhu Zhan

Jun Ouyang

Yalan Ding

KIM TAN kim.tan@nottingham.ac.uk
Professor of Operations and Innovation Management

Lingmei Fu



Abstract

Improving the quality of agricultural products is crucial for facilitating sustainable agricultural development. One widely embraced approach is contract farming, which generates guarantees – necessary for sustaining the continuous operations of vulnerable farmers – while enabling manufacturers to manage the aggregate supply chain risks and prices. Although management researchers have investigated power and quality performance issues between organisations, few have examined their impact on contract farming. This paper extends the literature by examining the relationships between power, supply chain integration and the quality performance of agricultural products, from the perspectives of farm households and agribusiness companies in contract farming. This study proposes and empirically examines a model, applying survey data from 78 agricultural companies and 321 peasant householders in China. The results show that different types of power have different effects on contract farming. In particular, non-economic power significantly and positively affects supply chain integration. Its impact on process coordination is greater than its impact on information sharing. The effect of economic power on supply chain integration is different from the binary perspective. These findings have positive theoretical and practical significance for agribusiness and will help farmers to improve the quality of primary agricultural products and achieve sustainable agricultural development.

Journal Article Type Article
Publication Date Jul 16, 2020
Journal Production Planning & Control
Print ISSN 0953-7287
Electronic ISSN 1366-5871
Publisher Taylor & Francis Open
Peer Reviewed Peer Reviewed
Pages 1-17
APA6 Citation Fu, S., Zhan, Y., Ouyang, J., Ding, Y., Tan, K. H., & Fu, L. (2020). Power, supply chain integration and quality performance of agricultural products: evidence from contract farming in China. Production Planning and Control, 1-17. https://doi.org/10.1080/09537287.2020.1794074
DOI https://doi.org/10.1080/09537287.2020.1794074
Keywords Management Science and Operations Research; Strategy and Management; Industrial and Manufacturing Engineering; Computer Science Applications
Publisher URL https://www.tandfonline.com/doi/abs/10.1080/09537287.2020.1794074
Additional Information Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline....ope&journalCode=tppc20; Received: 2019-03-27; Accepted: 2020-07-06; Published: 2020-07-16
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