IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i21p9460-d1778933.html
   My bibliography  Save this article

Traceability Decisions and Coordination Contracts in Agricultural Supply Chains Under Different Power Structures

Author

Listed:
  • Weixia Xue

    (Tan Kah Kee College, Xiamen University, Zhangzhou 363105, China
    School of Management, Xiamen University, Xiamen 361005, China)

  • Xiongyong Zhou

    (School of Economics and Management, Fuzhou University, Fuzhou 350108, China)

  • Zhiduan Xu

    (School of Management, Xiamen University, Xiamen 361005, China)

Abstract

Recent frequent food safety incidents have heightened consumer concern about agricultural product traceability, driving companies to build more robust supply chain traceability systems. However, enhancing traceability level is not only driven by consumer preferences but is also profoundly shaped by supply chain power structures and coordination mechanisms. In this study, we investigate how consumer preferences, power structures, and contractual mechanisms jointly shape traceability investment and coordination in agricultural supply chains. Using a two-tier supplier–retailer game-theoretic model, we compare traceability levels, pricing, and profit allocation under three governance structures: vertical Nash, supplier-led, and retailer-led. We also evaluate the effectiveness of cost-sharing and revenue-sharing contracts. The results reveal several key insights. First, consumer preference for traceable products serves as a critical market-driven force that enhances traceability investment across supply chain tiers. Second, power structures fundamentally determine traceability outcomes through threshold-dependent mechanisms: when consumer preference is weak, vertical Nash structures yield superior traceability via balanced cost-sharing; however, once preference intensity surpasses critical thresholds, retailer-led structures dominate in responsiveness, profit distribution, and capability building. In contrast, supplier-led structures deliver the weakest outcomes, as concentrated cost burdens suppress investment incentives, particularly in supply chains composed of small and medium-sized suppliers. Third, coordination contracts exhibit structure-specific efficacy. Cost-sharing contracts achieve full optimization in vertical Nash contexts and yield Pareto improvements in supplier-led chains, whereas traditional contracts exert minimal influence in retailer-led settings. These findings enrich our theoretical understanding of traceability governance and provide practical guidance for differentiated traceability design and contract formulation.

Suggested Citation

  • Weixia Xue & Xiongyong Zhou & Zhiduan Xu, 2025. "Traceability Decisions and Coordination Contracts in Agricultural Supply Chains Under Different Power Structures," Sustainability, MDPI, vol. 17(21), pages 1-37, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:21:p:9460-:d:1778933
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/21/9460/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/21/9460/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Supply chain channel strategies with quality and marketing effort-dependent demand," International Journal of Production Economics, Elsevier, vol. 144(2), pages 572-581.
    2. Sara Saberi & Mahtab Kouhizadeh & Joseph Sarkis & Lejia Shen, 2019. "Blockchain technology and its relationships to sustainable supply chain management," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 2117-2135, April.
    3. Dickinson, David L. & Bailey, DeeVon, 2002. "Meat Traceability: Are U.S. Consumers Willing To Pay For It?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-17, December.
    4. Ma, Peng & Wang, Haiyan & Shang, Jennifer, 2013. "Contract design for two-stage supply chain coordination: Integrating manufacturer-quality and retailer-marketing efforts," International Journal of Production Economics, Elsevier, vol. 146(2), pages 745-755.
    5. Jill E. Hobbs & DeeVon Bailey & David L. Dickinson & Morteza Haghiri, 2005. "Traceability in the Canadian Red Meat Sector: Do Consumers Care?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 47-65, March.
    6. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    7. Pan, Kewen & Lai, K.K. & Leung, Stephen C.H. & Xiao, Di, 2010. "Revenue-sharing versus wholesale price mechanisms under different channel power structures," European Journal of Operational Research, Elsevier, vol. 203(2), pages 532-538, June.
    8. Ghosh, Debabrata & Shah, Janat, 2012. "A comparative analysis of greening policies across supply chain structures," International Journal of Production Economics, Elsevier, vol. 135(2), pages 568-583.
    9. Golan, Elise H. & Krissoff, Barry & Kuchler, Fred & Calvin, Linda & Nelson, Kenneth E. & Price, Gregory K., 2004. "Traceability In The U.S. Food Supply: Economic Theory And Industry Studies," Agricultural Economic Reports 33939, United States Department of Agriculture, Economic Research Service.
    10. Chen, Jingxian & Liang, Liang & Yang, Feng, 2015. "Cooperative quality investment in outsourcing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 174-191.
    11. Heyder, Matthias & Theuvsen, Ludwig & Hollmann-Hespos, Thorsten, 2012. "Investments in tracking and tracing systems in the food industry: A PLS analysis," Food Policy, Elsevier, vol. 37(1), pages 102-113.
    12. Yi Zheng & Yaoqun Xu & Zeguo Qiu, 2023. "Blockchain Traceability Adoption in Agricultural Supply Chain Coordination: An Evolutionary Game Analysis," Agriculture, MDPI, vol. 13(1), pages 1-21, January.
    13. Zhi-Ping Fan & Xue-Yan Wu & Bing-Bing Cao, 2022. "Considering the traceability awareness of consumers: should the supply chain adopt the blockchain technology?," Annals of Operations Research, Springer, vol. 309(2), pages 837-860, February.
    14. Moises A. Resende-Filho & Brian L. Buhr, 2008. "A Principal-Agent Model for Evaluating the Economic Value of a Traceability System: A Case Study with Injection-site Lesion Control in Fed Cattle," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1091-1102.
    15. Yao Cui & Vishal Gaur, 2023. "Supply Chain Transparency Using Blockchain: Benefits, Challenges, and Examples," Springer Books, in: Rico Merkert & Kai Hoberg (ed.), Global Logistics and Supply Chain Strategies for the 2020s, pages 307-326, Springer.
    Full references (including those not matched with items on IDEAS)

    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. Weixia Xue & Zhiduan Xu, 2022. "The Impacts of Government Subsidies and Consumer Preferences on Food Supply Chain Traceability under Different Power Structures," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    2. Amirhosein Patoghi & Ata Allah Taleizadeh & Mohammad Sadegh Moshtagh & Seyed Meysam Mousavi, 2024. "Integrated pricing model of new and remanufactured products with joint considerations of quality, sales and collection effort, and return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 2035-2067, January.
    3. Diogo M. Souza-Monteiro & Julie A. Caswell, 2010. "The Economics of Voluntary Traceability in Multi-Ingredient Food Chains," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 122-142.
    4. Fan, Jianchang & Ni, Debing & Fang, Xiang, 2020. "Liability cost sharing, product quality choice, and coordination in two-echelon supply chains," European Journal of Operational Research, Elsevier, vol. 284(2), pages 514-537.
    5. Yuling Sun & Xiaomei Song & Yihao Jiang & Jian Guo, 2023. "Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences," Mathematics, MDPI, vol. 11(5), pages 1-18, February.
    6. Emad Sane Zerang & Ata Allah Taleizadeh & Jafar Razmi, 2018. "Analytical comparisons in a three-echelon closed-loop supply chain with price and marketing effort-dependent demand: game theory approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 451-478, February.
    7. Changhong Li & Jialuo Wang & Yifan Shi, 2022. "The Impact of Government Intervention and Cap-and-Trade on Green Innovation in Supply Chains: A Social Welfare Perspective," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    8. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    9. Chung, Hwan & Lee, Eunkyu, 2017. "Asymmetric relationships with symmetric suppliers: Strategic choice of supply chain price leadership in a competitive market," European Journal of Operational Research, Elsevier, vol. 259(2), pages 564-575.
    10. Zengxian Li & Aijun Liu & Jiaxin Li & Jiamin Xiong & Hui Lu, 2023. "Manufacturer encroachment strategies and decision timing considering the product traceability preferences under e‐commerce," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(7), pages 4041-4067, October.
    11. Resende Filho, Moises de Andrade & Buhr, Brian L., "undated". "Economics of Traceability for Mitigation of Food Recall Costs," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126193, International Association of Agricultural Economists.
    12. Zhou, Xiongyong & Zhu, Qinghua & Xu, Zhiduan, 2023. "The role of contractual and relational governance for the success of digital traceability: Evidence from Chinese food producers," International Journal of Production Economics, Elsevier, vol. 255(C).
    13. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    14. Biswas, Debajyoti & Jalali, Hamed & Ansaripoor, Amir H. & De Giovanni, Pietro, 2023. "Traceability vs. sustainability in supply chains: The implications of blockchain," European Journal of Operational Research, Elsevier, vol. 305(1), pages 128-147.
    15. Souza Monteiro, Diogo M. & Caswell, Julie A., 2005. "The Economics of Traceability for Multi-Ingredient Products: A Network Approach," 2005 Annual meeting, July 24-27, Providence, RI 19143, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Emad Sane-Zerang & Jafar Razmi & Ata Allah Taleizadeh, 2020. "Coordination in a closed-loop supply chain under asymmetric and symmetric information with sales effort-dependent demand," Journal of Business Economics, Springer, vol. 90(2), pages 303-334, March.
    17. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2014. "Product variety and channel structure strategy for a retailer-Stackelberg supply chain," European Journal of Operational Research, Elsevier, vol. 233(1), pages 114-124.
    18. Reza-Gharehbagh, Raziyeh & Hafezalkotob, Ashkan & Makui, Ahmad & Sayadi, Mohammad Kazem, 2022. "Financing green technology development and role of digital platforms: Insourcing vs. outsourcing," Technology in Society, Elsevier, vol. 69(C).
    19. Dou, Guowei & Wei, Kun & Sun, Tingting & Ma, Lijun, 2024. "Blockchain technology adoption in a supply chain: Channel leaderships and environmental implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 192(C).
    20. Lin Chen & Jin Peng & Zhibing Liu & Ruiqing Zhao, 2017. "Pricing and effort decisions for a supply chain with uncertain information," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 264-284, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:17:y:2025:i:21:p:9460-:d:1778933. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.