How do well-performed food businesses manage suppliers in emerging economies?

Abstract

PurposeThis study aims to investigate the supplier selection criteria, relationship quality and level of collaboration in Asian food businesses, while also examining the link between these practices and business performance. The research focusses on food manufacturing and exporting companies in two emerging economies, China and Vietnam.Design/methodology/approachFood manufacturing and exporting companies in two emerging economies – China and Vietnam were surveyed and analysed to extract factors that reflect supplier management and business performance along with their relationship by factor analysis and hierarchical regression. Then, a two-step cluster analysis was applied to identify clusters based on supplier management and explore how different business performance groups manage their suppliers.FindingsFour clusters that are distinct sets of food firms with detailed references about their typical characteristics revealing their business performance and supplier management practices. Also, the study confirms that certificates, reliability and inspection results constitute the factor of quality-related criteria for food firms. It is an interesting insight into what firms prioritise in selecting and maintaining collaboration and relationships with suppliers that reflect actual demanding specifications for supplier conformity.Research limitations/implicationsThe study reveals the business status of the studied companies and each group's specific references, such as the criteria they prefer to select suppliers, the relationship quality and the level of collaboration.Originality/valueThe study is a useful reference for both researchers and practitioners to have a comprehensive view of supplier management in the food industry based on the viewpoint of Asian food manufacturers.