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A conceptual framework for supply chain governance

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  • Xiaoyong Zhang
  • Lusine H. Aramyan

Abstract

Purpose - Chinese agri‐food chains consist of the millions of small scale farmers, who are not well structured and organized in the supply chain. Owing to market liberalization and globalization, one of the most challenging issues along agri‐food chains in China is becoming the issue of how to link these small‐scale farmers into the modern chains. Consequently, it is essential for both policy makers and private sectors to understand the governance structure in agri‐food supply chains. Therefore, the purpose of this paper is to develop a theoretical framework for supply chain governance, including its antecedents and consequences, as well as a series of hypotheses for empirical testing. Design/methodology/approach - A conceptual framework of chain governance is proposed in this study, where governance structure consists of two dimensions: contractual governance and relational governance. The study intends to propose a complementary relationship between contracts and relational aspects, such as trust, in the Chinese context. Future research is needed to empirically test this model. Findings - The proposed conceptual model is unique, since the majority of the articles addressing this topic focuses on contract farming while limited research touches upon the issues of trust and relations. However, a combination of both contracting and relationships are seldom addressed. Originality/value - This paper evaluates a novel concept of two dimensional governance structure in the agri‐food supply chain, where transaction cost economics theory and relational theory are combined to study the governance relationships between small scale producers in China and their buyers.

Suggested Citation

  • Xiaoyong Zhang & Lusine H. Aramyan, 2009. "A conceptual framework for supply chain governance," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 136-154, January.
    • Handle: RePEc:eme:caerpp:v:1:y:2009:i:2:p:136-154
    DOI: 10.1108/17561370910927408
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    3. Lucas Oliveira de Sousa & Marcelo Dias Paes Ferreira & Marcus Mergenthaler, 2018. "Agri-Food Chain Establishment as a Means to Increase Sustainability in Food Systems: Lessons from Sunflower in Brazil," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    4. Marianne Hubeau & Fleur Marchand & Guido Van Huylenbroeck, 2017. "Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success," Sustainability, MDPI, vol. 9(6), pages 1-23, June.
    5. Leat, Philip M.K. & Lamprinopoulou-Kranis, Chrysa & Revoredo-Giha, Cesar & Kupiec-Teahan, Beata, 2011. "Agri-food supply chains and sustainability-related issues: evidence from across the Scottish agri-food economy," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108952, Agricultural Economics Society.
    6. Gumataw Kifle Abebe, 2020. "Effects of institutional pressures on the governance of food safety in emerging food supply chains: a case of Lebanese food processors," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1125-1138, December.
    7. Pfaff, Yuko Melanie & Birkel, Hendrik & Hartmann, Evi, 2023. "Supply chain governance in the context of industry 4.0: Investigating implications of real-life implementations from a multi-tier perspective," International Journal of Production Economics, Elsevier, vol. 260(C).
    8. Ebru Seckin, 2013. "The comparison in terms of trust of modern and traditional supply chains in fresh fruit and vegetable," ERSA conference papers ersa13p388, European Regional Science Association.
    9. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

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