IDEAS home Printed from https://ideas.repec.org/p/ags/iefi10/100502.html
   My bibliography  Save this paper

Impact of Firm Characteristics on Expected and Actual Traceability Costs and Benefits in the Italian Fishery Supply Chain

Author

Listed:
  • Asioli, Daniele
  • Boecker, Andreas
  • Canavari, Maurizio

Abstract

Since 2005, the implementation of a traceability system is mandatory to all European food chain operators. The balance of costs to build and maintain the traceability system and benefits of traceability depends on the firm's traceability objectives and its resources, as reflected in characteristics, such as adopted quality management systems (QMS) or firm size. Mora and Menozzi (2005) mention that the cost of traceability is lower when firms already have a QMS in place. Moreover, US producers exporting to multiple destinations, in particular EU and Japan, need to comply with more stringent traceability regulations (De Souza Monteiro and Caswell 2004). This may request the adoption of more sophisticated and costly traceability systems. Food operators tend to have a good understanding of traceability cost, while performance benefits are usually more difficult to grasp (Verdenius 2006). This research aims at improving the understanding of how expected and actual costs and perceived benefits are influenced by firm characteristics (Meuwissen et al. 2003). This paper proposes a conceptual decision model that incorporates firm characteristics and both expected and actual costs and benefits of traceability. It is hypothesized that firm characteristics influence both expected and actual costs and benefits, while the level of traceability is influenced by expected and actual costs and perceived benefits as well as firms' characteristics. Costs can be divided into implementation and operation/maintenance costs. Benefits can arise from compliance with regulatory requirements, enhanced recall performance, improved marketing performance and increased supply chain efficiency (Sparling and Sterling 2004). The analysis uses a sample of 60 Italian fish processing businesses that were surveyed in 2008. Indicators of firm's characteristics such as number of QMS certifications, operations complexity, firm size and complexity of customer requirements, are entered as independent variables in regression analyses to predict expected and actual costs and perceived benefits which were measured on 90 point semantic scales and constant sum scales. The findings show that none of the firm characteristics investigated influence costs, while firm size and QMS certifications influence benefits in different ways. Somewhat surprisingly, firm size was found to be negatively correlated with expected and actual benefits; i.e. larger firms reported lower benefits both expected ex]ante and realized ex]post traceability system implementation. Finally, the number of QMS certifications is positively associated with expected benefits; i.e. expected benefits increase with the number of QMS certifications acquired by a firm, but no association with actual perceived benefits of traceability was found.

Suggested Citation

  • Asioli, Daniele & Boecker, Andreas & Canavari, Maurizio, 2010. "Impact of Firm Characteristics on Expected and Actual Traceability Costs and Benefits in the Italian Fishery Supply Chain," 2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria 100502, International European Forum on Innovation and System Dynamics in Food Networks.
  • Handle: RePEc:ags:iefi10:100502
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/100502
    Download Restriction: no

    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:ags:iefi10:100502. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://www.fooddynamics.org/ .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.