Food and grocery supply chains: a reappraisal of ECR performance

Abstract

PurposeThe paper aims to reappraise efficient consumer response (ECR) in the grocery and food industry to determine whether financial and operating performance improves with ECR adoption.Design/methodology/approachThe paper uses a time‐series multiple regression model. The methodology overcomes historical shortcomings in ECR and supply chain management research related to small sample size, one‐tier investigation, and short‐longitudinal focus.FindingsECR adoption has beneficial impacts for both financial and operational performance.Research limitations/implicationsTwo limitations exist. First, determining the actual time of implementation for supply chain management strategies by firms in the food industry is extremely difficult. The method used to classify firms as ECR adopters in this paper is believed to be sound and unbiased, but errors may exist. Second, this analysis does not account for differences in the implementation level for ECR. For simplicity, a binary variable is used to distinguish firms adopting or not adopting supply chain management strategies (ECR). Further study is needed to determine how differences in the level of ECR implementation impacts firm performance.Practical implicationsThe paper overcomes historical shortcomings in ECR performance research. The paper provides academics and practitioners in the food and grocery industry definitive evidence that ECR has beneficial impacts for both financial and operational performance in the food and grocery industry.Originality/valueBy placing greater attention on overcoming historical shortcomings in supply chain management research related to small sample size, one‐tier investigation, and longitudinal study, the paper improves upon previous evaluations of ECR.