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“Pivoting” by food industry firms to cope with COVID‐19 in developing regions: E‐commerce and “copivoting” delivery intermediaries

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  • Thomas Reardon
  • Amir Heiman
  • Liang Lu
  • Chandra S.R. Nuthalapati
  • Rob Vos
  • David Zilberman

Abstract

Coronavirus disease 2019 and related lockdown policies in 2020 shocked food industry firms’ supply chains in developing regions. Firms “pivoted” to e‐commerce to reach consumers and e‐procurement to reach processors and farmers. “Delivery intermediaries” copivoted with food firms to help them deliver and procure. This was crucial to the ability of the food firms to pivot. The pandemic was a “crucible” that induced this set of fast‐tracking innovations, accelerating the diffusion of e‐commerce and delivery intermediaries, and enabling food industry firms to redesign, at least temporarily, and perhaps for the long term, their supply chains to be more resilient, and to weather the pandemic, supply consumers, and contribute to food security. We present a theoretical model to explain these firm strategies, and then apply the framework to classify firms’ practical strategies. We focus on cases in Asia and Latin America. Enabling policy and infrastructural conditions allowed firms to pivot and copivot fluidly.

Suggested Citation

  • Thomas Reardon & Amir Heiman & Liang Lu & Chandra S.R. Nuthalapati & Rob Vos & David Zilberman, 2021. "“Pivoting” by food industry firms to cope with COVID‐19 in developing regions: E‐commerce and “copivoting” delivery intermediaries," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 459-475, May.
    • Handle: RePEc:bla:agecon:v:52:y:2021:i:3:p:459-475
    DOI: 10.1111/agec.12631
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    References listed on IDEAS

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    1. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
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    Cited by:

    1. Liang Lu & Ruby Nguyen & Md Mamunur Rahman & Jason Winfree, 2021. "Demand Shocks and Supply Chain Resilience: An Agent-Based Modelling Approach and Application to the Potato Supply Chain," NBER Chapters, in: Risks in Agricultural Supply Chains, National Bureau of Economic Research, Inc.
    2. Mac Clay, Pablo & Sellare, Jorge, 2022. "Value chain transformations in the transition to a sustainable bioeconomy," Discussion Papers 323957, University of Bonn, Center for Development Research (ZEF).
    3. Kruseman, Gideon & Dermawan, Ahmad & Diagne, Mandiaye & Enahoro, Dolapo & Frija, Aymen & Gatto, Marcel & Gbegbelegbe, Sika & Komarek, Adam M. & Mausch, Kai & Mottaleb, Khondoker, 2021. "Foresight for income and employment: What can we learn for agricultural research for development," SocArXiv 783rw, Center for Open Science.
    4. Pallavi Rajkhowa & Lukas Kornher, 2022. "COVID-19 and distortions in urban food market in India," Indian Economic Review, Springer, vol. 57(1), pages 133-164, June.
    5. Adah-Kole Emmanuel Onjewu & Sundas Hussain & Mohamed Yacine Haddoud, 2022. "The Interplay of E-commerce, Resilience and Exports in the Context of COVID-19," Information Systems Frontiers, Springer, vol. 24(4), pages 1209-1221, August.
    6. Jacques Bughin & Tobias Kretschmer & Nicolas van Zeebroeck, 2021. "Digital technology adoption drives strategic renewal for successful digital transformation," ULB Institutional Repository 2013/328855, ULB -- Universite Libre de Bruxelles.
    7. Johan Swinnen & Rob Vos, 2021. "COVID‐19 and impacts on global food systems and household welfare: Introduction to a special issue," Agricultural Economics, International Association of Agricultural Economists, vol. 52(3), pages 365-374, May.

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