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Social Networks and Supplychain Management in Rural Areas: A Case Study Focusing on Organic Olive Oil

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  • Medicamento, Umberto
  • De Gennaro, Bernardo

Abstract

In recent years, due to the growing supply of organic production, the economic performances and the competitive advantages of the farms, have become more dependent on network organisations in the supply chains. This evolution equires methodological approaches able to capture all the variables involved in the generating value processes. The network dimension of the supply chain has become a key element, and enables us to understand better the competitive performances of firms. The relationships of firms, among intangible assets, are recently considered one of the main sources of profit. So the relational capital forms the essence of the value of the firm and it is advantages on the whole coming out by occupying a specific position (role) in the network of social relationships, the social network (Costabile, 2001). The goods present in a context are not enough to explain the wealth of a firm or a supply chain or a sector, so it is necessary to understand the nature of exchanges and how do they work trough the network. For these reasons our study compares supply chains of organic olive oil in Italy and in Spain using the Social Network Analysis. The data was collected by survey in two areas: the Sierra de Segura (Andalucia, Spain) and the province of Bari (Puglia, Italy). By the results of our study we can assert that the Sierra de Segura shows a simple network which allows, trough a cooperative organisation, to generate value for the farms. On the other hand, in the province of Bari the network organisation is quite disperse, denoting a luck of organisation which bring to a low level in competitiveness of the whole supply chain. At the same time, firms with a good economic results have also a central position in the network.

Suggested Citation

  • Medicamento, Umberto & De Gennaro, Bernardo, 2006. "Social Networks and Supplychain Management in Rural Areas: A Case Study Focusing on Organic Olive Oil," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25266, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25266
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    Cited by:

    1. Yan, Zhen & Yu, Xiaohua & Zhou, Jiehong, 2016. "Measure consumer preferences for pork attributes under different media coverage in China," GlobalFood Discussion Papers 232028, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Yan, Zhen & Zhou, Jie-hong, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China," 2015 Conference, August 9-14, 2015, Milan, Italy 211884, International Association of Agricultural Economists.
    3. Yan, Zhen & Zhou, Jie-hong, 2015. "Measuring consumer heterogeneous preferences for pork traits under media reports: choice experiment in sixteen traceability pilot cities, China," 2015 Conference, August 9-14, 2015, Milan, Italy 212609, International Association of Agricultural Economists.
    4. Luisa Menapace & Gregory Colson & Carola Grebitus & Maria Facendola, 2011. "Consumers' preferences for geographical origin labels: evidence from the Canadian olive oil market," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(2), pages 193-212, June.

    More about this item

    Keywords

    Industrial Organization;

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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