IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v209y2019icp360-373.html
   My bibliography  Save this article

Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry

Author

Listed:
  • Ding, Huiping
  • Fu, Yanan
  • Zheng, Lucy
  • Yan, Zhu

Abstract

In this study, we use an evidence-based approach to examine the factors that determine the competitive advantage of dairy supply chains using evidence from the Chinese dairy industry. We focus on the quality assurance of dairy products, which is considered one of the fundamental influential factors. We investigate interrelationships among the identified determinants, which include dairy production behavior, dairy cow culture model, government regulations, corporate social responsibility, and quality assurance, and examine how these determinants influence the competitive advantage of dairy supply chains. We employ the structural equation modeling approach in which grouped observable variables that represent the identified determinants are extrapolated from primary data collected through a questionnaire survey. Our key findings show that by mediating the effects of dairy production behavior and the dairy cow culture model, government regulation and corporate social responsibility significantly affect the quality assurance of dairy products. In turn, dairy production behavior and the dairy cow culture model significantly affect the competitive advantage of the dairy supply chain via the fully mediated effects of the quality assurance of dairy products. Specifically, the dairy cow culture model helps ensure the safety and quality of milk supply, allowing core dairy firms to control product quality throughout the dairy supply chain. Our empirical study shows that the identified determinants interact to assure the quality of dairy products and enhance the competitive advantage of the dairy supply chain in China.

Suggested Citation

  • Ding, Huiping & Fu, Yanan & Zheng, Lucy & Yan, Zhu, 2019. "Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry," International Journal of Production Economics, Elsevier, vol. 209(C), pages 360-373.
    • Handle: RePEc:eee:proeco:v:209:y:2019:i:c:p:360-373
    DOI: 10.1016/j.ijpe.2018.02.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318301026
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.02.013?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. Bailey, Alison P. & Garforth, Chris, 2014. "An industry viewpoint on the role of farm assurance in delivering food safety to the consumer: The case of the dairy sector of England and Wales," Food Policy, Elsevier, vol. 45(C), pages 14-24.
    2. Dries, Liesbeth & Germenji, Etleva & Noev, Nivelin & Swinnen, Johan F.M., 2009. "Farmers, Vertical Coordination, and the Restructuring of Dairy Supply Chains in Central and Eastern Europe," World Development, Elsevier, vol. 37(11), pages 1742-1758, November.
    3. M. den Ouden & Aalt A. Dijkhuizen & Ruud B.M. Huirne & Peter J.P. Zuurbier, 1996. "Vertical cooperation in agricultural production-marketing chains, with special reference to product differentiation in pork," Agribusiness, John Wiley & Sons, Ltd., vol. 12(3), pages 277-290.
    4. A.G.J. Velthuis & M. Meuwissen & R.B.M. Huirne, 2009. "Distribution of direct recall costs along the milk chain," Agribusiness, John Wiley & Sons, Ltd., vol. 25(4), pages 466-479.
    5. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    6. Chen, Chialin & Zhang, Jun & Delaurentis, Teresa, 2014. "Quality control in food supply chain management: An analytical model and case study of the adulterated milk incident in China," International Journal of Production Economics, Elsevier, vol. 152(C), pages 188-199.
    7. Valeeva, Natalia I. & Huirne, Ruud B.M. & Meuwissen, Miranda P.M. & Oude Lansink, Alfons G.J.M., 2007. "Modeling farm-level strategies for improving food safety in the dairy chain," Agricultural Systems, Elsevier, vol. 94(2), pages 528-540, May.
    8. Kong, Dongmin, 2012. "Does corporate social responsibility matter in the food industry? Evidence from a nature experiment in China," Food Policy, Elsevier, vol. 37(3), pages 323-334.
    9. Henrik Vetter & Kostas Karantininis, 2002. "Moral hazard, vertical integration, and public monitoring in credence goods," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(2), pages 271-279, June.
    10. Christophe Charlier & Egizio Valceschini, 2008. "Coordination for traceability in the food chain. A critical appraisal of European regulation," European Journal of Law and Economics, Springer, vol. 25(1), pages 1-15, February.
    11. David A. Hennessy & Jutta Roosen & John A. Miranowski, 2001. "Leadership and the Provision of Safe Food," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 862-874.
    12. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    13. Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
    14. Vanessa von Schlippenbach & Isabel Teichmann, 2012. "The Strategic Use of Private Quality Standards in Food Supply Chains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1189-1201.
    15. Starbird, S. Andrew, 2000. "Designing Food Safety Regulations: The Effect Of Inspection Policy And Penalties For Noncompliance On Food Processor Behavior," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-20, December.
    16. Gale, H. Frederick, Jr. & Hu, Dinghuan, 2009. "Supply Chain Issues in China’s Milk Adulteration Incident," 2009 Conference, August 16-22, 2009, Beijing, China 51613, International Association of Agricultural Economists.
    17. Dervillé, Marie & Allaire, Gilles, 2014. "Change of competition regime and regional innovative capacities: Evidence from dairy restructuring in France," Food Policy, Elsevier, vol. 49(P1), pages 347-360.
    18. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    19. Marie Dervillé & Gilles Allaire, 2014. "Change of competition regime and regional innovative capacities: Evidence from dairy restructuring in France," Post-Print hal-01525845, HAL.
    20. Glover, J.L. & Champion, D. & Daniels, K.J. & Dainty, A.J.D., 2014. "An Institutional Theory perspective on sustainable practices across the dairy supply chain," International Journal of Production Economics, Elsevier, vol. 152(C), pages 102-111.
    21. Buzby, Jean C. & Frenzen, Paul D., 1999. "Food safety and product liability," Food Policy, Elsevier, vol. 24(6), pages 637-651, December.
    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. Xu Jing & Yao Guanxin & Dai Panqian, 2020. "Quality Decision-Making Behavior of Bodies Participating in the Agri-Foods E-Supply Chain," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    2. Yuhang Bai & Kuixing Han & Lichun Xiong & Yifei Li & Rundong Liao & Fengting Wang, 2022. "Differences and Factors of Raw Milk Productivity between China and the United States," Agriculture, MDPI, vol. 12(11), pages 1-13, November.
    3. Milena Bojovic & Andrew McGregor, 2023. "A review of megatrends in the global dairy sector: what are the socioecological implications?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 373-394, March.
    4. Yongbo Li & Ali Diabat & Chung-Cheng Lu, 2020. "Leagile supplier selection in Chinese textile industries: a DEMATEL approach," Annals of Operations Research, Springer, vol. 287(1), pages 303-322, April.
    5. Kazancoglu, Yigit & Sagnak, Muhittin & Mangla, Sachin Kumar & Sezer, Muruvvet Deniz & Pala, Melisa Ozbiltekin, 2021. "A fuzzy based hybrid decision framework to circularity in dairy supply chains through big data solutions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    6. Szilvia Botos & Róbert Szilágyi & János Felföldi & Mihály Tóth, 2020. "Readiness for ICT Based B2C Information Flow – Case Study of the Hungarian Food Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(2), June.
    7. Liu, Hongda & Huang, Feipeng & Huang, Jialiang, 2022. "Measuring the coordination decision of renewable energy as a natural resource contracts based on rights structure and corporate social responsibility from economic recovery," Resources Policy, Elsevier, vol. 78(C).
    8. Zizhong Shi & Junru Li & Xiangdong Hu, 2023. "From Large to Powerful: International Comparison, Challenges and Strategic Choices for China’s Livestock Industry," Agriculture, MDPI, vol. 13(7), pages 1-21, June.

    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. 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.
    2. You-hua Chen & Zhuang Zhang & Ashok K. Mishra, 2023. "A flexible and efficient hybrid agricultural subsidy design for promoting food security and safety," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    3. E. Rouvière & K. Latouche, 2014. "Impact of liability rules on modes of coordination for food safety in supply chains," European Journal of Law and Economics, Springer, vol. 37(1), pages 111-130, February.
    4. Chen, You-hua & Chen, Liu-man & Mishra, Ashok K., 2021. "Information, Capacity Constraints and Quality on Firms Competition," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329427, Asian Society of Agricultural Economists (ASAE).
    5. Nguyen Thi Nha Trang & Thanh-Thuy Nguyen & Hong V. Pham & Thi Thu Anh Cao & Thu Huong Trinh Thi & Javad Shahreki, 2022. "Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review," Sustainability, MDPI, vol. 14(11), pages 1-28, May.
    6. Lichtenberg, Erik & Tselepidakis, Elina, 2014. "Prevalence and Cost of On-Farm Produce Safety Measures in the Mid-Atlantic," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168210, Agricultural and Applied Economics Association.
    7. Bailey, Alison P. & Garforth, Chris, 2014. "An industry viewpoint on the role of farm assurance in delivering food safety to the consumer: The case of the dairy sector of England and Wales," Food Policy, Elsevier, vol. 45(C), pages 14-24.
    8. Lambare, Pierre & Derville, Marie & You, Gerard, 2018. "Quelles conditions d’accès au marché des éleveurs après les quotas laitiers ?‪," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 364(April-Jun).
    9. Giang N. T. Nguyen & Tapan Sarker, 2018. "Sustainable coffee supply chain management: a case study in Buon Me Thuot City, Daklak, Vietnam," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-17, December.
    10. Souza Monteiro, Diogo M. & Caswell, Julie A., 2008. "Optimal choice of Voluntary traceability as a food risk management tool," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44394, European Association of Agricultural Economists.
    11. Fotios Misopoulos & Roula Michaelides & Mohammad Afiq Salehuddin & Vicky Manthou & Zenon Michaelides, 2018. "Addressing Organisational Pressures as Drivers towards Sustainability in Manufacturing Projects and Project Management Methodologies," Sustainability, MDPI, vol. 10(6), pages 1-28, June.
    12. Sundarakani, Balan & Ajaykumar, Aneesh & Gunasekaran, Angappa, 2021. "Big data driven supply chain design and applications for blockchain: An action research using case study approach," Omega, Elsevier, vol. 102(C).
    13. Rodica Chetroiu & Ana Elena Cișmileanu & Elena Cofas & Ionut Laurentiu Petre & Steliana Rodino & Vili Dragomir & Ancuța Marin & Petruța Antoneta Turek-Rahoveanu, 2022. "Assessment of the Relations for Determining the Profitability of Dairy Farms, A Premise of Their Economic Sustainability," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    14. Ramin Bashir Khodaparasti & Hooshmand Bagheri Garabollagh & Reza Mohammadpour, 2020. "Engagement in Green Procurement: Antecedents and Outcomes on Manufacturing Small and Medium-Sized Enterprises from Iran," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(53), pages 102-102, February.
    15. Wang, Di & Liu, Guangqiang & Xie, Linlin, 2023. "Can compulsory liability insurance reduce agency costs? Evidence from China," Research in International Business and Finance, Elsevier, vol. 65(C).
    16. Junqian Xu & Yuanyuan Wu, 2018. "A Comparative Study of the Role of Australia and New Zealand in Sustainable Dairy Competition in the Chinese Market after the Dairy Safety Scandals," IJERPH, MDPI, vol. 15(12), pages 1-24, December.
    17. Dubey, Rameshwar & Gunasekaran, Angappa & Samar Ali, Sadia, 2015. "Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain," International Journal of Production Economics, Elsevier, vol. 160(C), pages 120-132.
    18. Adalja, Aaron & Lichtenberg, Erik, 2018. "Produce growers’ cost of complying with the Food Safety Modernization Act," Food Policy, Elsevier, vol. 74(C), pages 23-38.
    19. Iveta Boskova & Samuel Ahado & Tomas Ratinger, 2020. "The effects of the participation in producer organisations on the performance of dairy farmers in the Czech Republic and future challenges," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(8), pages 345-354.
    20. Sabine Duvaleix & Marie Lassalas & Laure Latruffe & Vasilia Konstantidelli & Irene Tzouramani, 2020. "Adopting Environmentally Friendly Farming Practices and the Role of Quality Labels and Producer Organisations: A Qualitative Analysis Based on Two European Case Studies," Sustainability, MDPI, vol. 12(24), pages 1-16, 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:eee:proeco:v:209:y:2019:i:c:p:360-373. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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.