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Information Sharing in Food Supply Chains

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  • Hamid Mohtadi

Abstract

Information sharing among firms within many industries accounts for a substantial part of the gains from information technology adoption in these industries. In this paper we examine the determinants of information sharing between retailers and their suppliers, in the food industry supply chain. Using a data set known as the Super Market Panel Data gathered by the University of Minnesota's Food Industry Center, the behavior of food retailers is examined in their adoption of information sharing technologies that facilitate vertical exchange of information with suppliers. Evidence supports the hypothesis that retail firms with larger number of suppliers are more inclined to share, rather than to withhold, information. Prior theoretical work suggests that this happens because retail firms with large number of suppliers are less concerned about opportunistic behavior of suppliers from the misuse of retailer information by the supplier. We also find that self‐distribution chains are more inclined to share information. Finally, the structure of the market plays an interesting role in the type of information sharing platforms that the retailers adopt. Dans de nombreux secteurs, l'échange d'information entre entreprises représente une part substantielle des gains issus de l'adoption des technologies de l'information. Dans le présent article, nous avons examiné les déterminants de l'échange d'information entre les détaillants de la chaîne d'approvisionnement alimentaire et leurs fournisseurs. À l'aide de l'ensemble de données Supermarket Panel Data, établi par le Food Industry Center de l'University of Minnesota, nous avons examiné le comportement des détaillants en alimentation quant à l'adoption des technologies d'échange d'information facilitant l'échange d'information vertical avec les fournisseurs. Les observations appuient l'hypothèse selon laquelle les détaillants qui comptent de nombreux fournisseurs sont plus disposés àéchanger qu’à retenir l'information. D'après des études théoriques antérieures, cette situation serait attribuable au fait que les détaillants qui comptent de nombreux fournisseurs sont moins préoccupés par le comportement opportuniste de fournisseurs qui utiliseraient de façon malveillante de l'information sur le détaillant. Nous avons également observé que les chaînes d'autodistribution étaient plus enclines àéchanger de l'information. Finalement, la structure du marché joue un rôle intéressant dans le type de plateformes d'échange d'information qu’adoptent les détaillants.

Suggested Citation

  • Hamid Mohtadi, 2008. "Information Sharing in Food Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 163-178, June.
  • Handle: RePEc:bla:canjag:v:56:y:2008:i:2:p:163-178
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    File URL: https://doi.org/10.1111/j.1744-7976.2008.00123.x
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    1. Srinagesh Gavirneni & Roman Kapuscinski & Sridhar Tayur, 1999. "Value of Information in Capacitated Supply Chains," Management Science, INFORMS, vol. 45(1), pages 16-24, January.
    2. Raith, Michael, 1996. "A General Model of Information Sharing in Oligopoly," Journal of Economic Theory, Elsevier, vol. 71(1), pages 260-288, October.
    3. Dooley, Frank J. & Roucan, Maud & King, Robert P., 2004. "Ecr And The Importance Of Collaboration For Supermarkets," 2004 Annual meeting, August 1-4, Denver, CO 20368, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Hau L. Lee & Kut C. So & Christopher S. Tang, 2000. "The Value of Information Sharing in a Two-Level Supply Chain," Management Science, INFORMS, vol. 46(5), pages 626-643, May.
    5. Erik Brynjolfsson & Lorin M. Hitt, 2003. "Computing Productivity: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 793-808, November.
    6. Fangruo Chen, 1998. "Echelon Reorder Points, Installation Reorder Points, and the Value of Centralized Demand Information," Management Science, INFORMS, vol. 44(12-Part-2), pages 221-234, December.
    7. Jean Kinsey, 2000. "A Faster, Leaner, Supply Chain: New Uses of Information Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1123-1129.
    8. Lode Li, 1985. "Cournot Oligopoly with Information Sharing," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 521-536, Winter.
    9. Lode Li, 2002. "Information Sharing in a Supply Chain with Horizontal Competition," Management Science, INFORMS, vol. 48(9), pages 1196-1212, September.
    10. Gal-Or, Esther, 1985. "Information Sharing in Oligopoly," Econometrica, Econometric Society, vol. 53(2), pages 329-343, March.
    11. Hamid Mohtadi & Jean D. Kinsey, 2005. "Information Exchange and Strategic Behavior in Supply Chains: Application to the Food Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 582-599.
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