Local and Sustainable Food Businesses: Assessing the Role of Supply Chain Coordination

Abstract

In food supply chains, products and services are continuously expanded and adapted according to changing customer demands. As concerns for environmental and social issues within societies grow, sustainable business practices in supply chains are coming to the fore. Altogether customers’ growing demand for local food has led to an increased importance of local food production and distribution networks. In this context, the present study analyzes sustainability-related practices in two local food production and distribution networks in Germany and Austria applying a multiple-case study approach to understand how business models can facilitate sustainable practices within the food industry. By comparing the selected cases, insights were derived with regard to sustainable business model elements in local food networks, in particular promoting logistics and financial coordination in the supply chain. Thus, the article builds on academic literature by identifying and describing key elements of sustainable business models in local food networks. At the same time, it can be argued that sustainable business models have to be accepted by consumers such that sustainability advantage aspects need to be stressed through external communication. Managerial implications with regard to transferability and scaling of regional food businesses are provided accordingly.