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The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business

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  • Zhao, Xiaofei
  • Wang, Ping
  • Pal, Raktim

Abstract

Aiming at the unique characteristics of agro-food supply chain, this study builds a comprehensive model to investigate the impact of agro-food supply chain integration, composed of internal, supplier and customer integration, on agro-food product quality and financial performance. It explores the relationships among these factors using the data from 162 Chinese agro-food processing businesses. The findings reveal that internal integration and supplier integration are the critical factors to improve product quality within the context of agro-food supply chain. Moreover, the product quality fully mediates the relationship between internal integration and financial performance, and the relationship between supplier integration and financial performance. This study indicates that securing product quality and food safety is an effective way to achieve better financial performance for agro-food processing businesses. This study could help agro-food processing businesses understand the value creation roles of agro-food supply chain integration and provide valuable guidance for them to decide how to respond to various challenges and manage agro-food supply chain integration in order to improve product quality and achieve higher financial performance. A unique contribution of this study is to provide a theoretical framework for advancing the agro-food supply chain integration literature, which thereby could be expected to open a starting point for more agro-food supply chain integration research in the future.

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  • Zhao, Xiaofei & Wang, Ping & Pal, Raktim, 2021. "The effects of agro-food supply chain integration on product quality and financial performance: Evidence from Chinese agro-food processing business," International Journal of Production Economics, Elsevier, vol. 231(C).
    • Handle: RePEc:eee:proeco:v:231:y:2021:i:c:s0925527320302024
    DOI: 10.1016/j.ijpe.2020.107832
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    3. Chen, Meng & Tang, Xinlin & Liu, Hefu & Gu, Jibao, 2023. "The impact of supply chain concentration on integration and business performance," International Journal of Production Economics, Elsevier, vol. 257(C).
    4. Svitovyi, Oleksandr & Kirdan, Oleksandr & Gechbaia, Badri, 2022. "Organizational-economic foundations of formation of value added in grain production," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(3), September.
    5. Haolong Liu, 2022. "The Tripartite Evolutionary Game of Green Agro-Product Supply in an Agricultural Industrialization Consortium," Sustainability, MDPI, vol. 14(18), pages 1-19, September.
    6. Toušek, Zdeněk & Hinke, Jana & Malinská, Barbora & Prokop, Martin, 2022. "Shareholder Value Generation within the Agro-Food Financial Supply Chain," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(3), September.
    7. Lu Wang & Jianli Luo & Yuxia Liu, 2021. "Agricultural cooperatives participating in vegetable supply chain integration: A case study of a trinity cooperative in China," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-20, June.
    8. Hotlan Siagian & Zeplin Jiwa Husada Tarigan & Ferry Jie, 2021. "Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    9. Lee, Neil Chueh-An, 2021. "Reconciling integration and reconfiguration management approaches in the supply chain," International Journal of Production Economics, Elsevier, vol. 242(C).
    10. Donkor, Frank & Papadopoulos, Thanos & Spiegler, Virginia, 2021. "The supply chain integration – Supply chain sustainability relationship in the UK and Ghana pharmaceutical industry: A stakeholder and contingency perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    11. Guangxing Wei & Linrong Zhou & Binta Bary, 2022. "Operational Decision and Sustainability of Green Agricultural Supply Chain with Consumer-Oriented Altruism," Sustainability, MDPI, vol. 14(19), pages 1-25, September.

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