Redefining Quality in Food Supply Chains via the Natural Resource Based View and Convention Theory

Abstract

This study develops and tests a novel product quality framework for food supply chains (FSCs) that addresses sustainability. Issues including climate change, population growth, and the resources required by industrialized agriculture, as well as changing consumer preferences contribute to concerns about the social, ecological, and economic sustainability of FSCs. FSCs, therefore, need to be adapted to address changing supply and demand characteristics. We integrate the natural resource-based view (NRBV) with convention theory (CT) to develop a new set of quality dimensions. Placing social and ecological considerations within the domain of quality management advances theory in two ways. First, while social and ecological considerations are typically peripheral to business models, this framework allows social responsibility and the natural environment to occupy a central place within FSC operations. Second, the framework reflects the fundamentally socially embedded nature of FSCs, including the geographic, historical, and cultural associations of food quality. We then construct a typology of quality conventions and FSCs. We empirically test the typology using a case study methodology with cases from the United States of America (USA). The analysis explores how firms bundle quality conventions across FSCs for competitive advantage. We also find a set of paths through which FSCs transition via exploitation, exploration and organizational ambidexterity to generate competitive advantage, highlighting tradeoffs that may arise as FSCs evolve. These tradeoffs, which relate to maintaining or adapting quality conventions, are practically important because, if not managed appropriately, may result in lower performance and less sustainable FSCs.