Strategic information sharing in Australian fresh produce chains

Abstract

Fresh produce chains are unique as value attributes such as size, flavour, colour and appearance are determined upstream in the chain. Fresh produce chains differ from manufacturing chains, not only in where value attributes are created but also in product transformation. Fresh produce changes very little as the product moves through the chain, compared to manufacturing, where the product changes form. Fresh produce has the added elements of perishability, food safety and product variability making information sharing an essential element to manage the supply chain. The competitive environment in which firms operate is increasingly chain verses chain. To achieve a sustainable competitive advantage requires chain collaboration, cooperation and strategic information sharing. Despite the importance of strategic information exchanges between firms in a fresh produce supply chain, there is limited research on interfirm strategic information sharing.Prior research has focused on operational information, including how specifications, product quality and quantity is shared between firms. Antecedents and barriers to information flows and the use of information technology systems within dyadic relationships have been extensively researched. The specific gap this research addressed was interfirm strategic information sharing in fresh produce supply chains within Australia. The research focused on why strategic information was or was not shared, what strategic information was shared and the mechanisms which improved the quality of strategic information sharing.Twenty-six owners, directors, and managers from twenty-three firms involved in six diverse perishable fresh fruit and vegetable chains in Australia were interviewed. The firms which participated included seed suppliers, plant nurseries, growers, grower-packers, market agents, food processors, retailers, and input suppliers (agro-chemical suppliers and transport companies). Additionally, fourteen experts, with a minimum of ten years of experience in fresh produce chains in Australia, were interviewed and provided an additional data source to improve the trustworthiness and credibility of the findings. Using NVivo, interview transcripts were analysed and data categorised into codes. Further analysis identified themes and answers to the research questions.This research extended existing theories of information sharing by applying relational and contingent resource-based view theories. Trust, commitment, and collaboration were essential for information sharing however the exchange of strategic information was contingent on internal and external factors. This research identified internal factors including the firms’ culture towards information sharing and the strategy and orientation of the firm and chain influenced strategic information sharing. Industry bodies were identified as an external influence on strategic information sharing. Findings from this research indicated industry bodies influenced the availability of data, information, and strategic forums as well as the level of market orientation of the industry. The application of multiple theories (relational view, contingency theory, and resource-based view) extends recent empirical research in using multiple theories to understand the complex system of information sharing in supply chains.This research extends existing information sharing literature by providing empirical evidence that information sharing extends beyond dyadic exchanges. In the supply chains studied, multi-tier information sharing occurred, which contradicts existing supply chain information sharing studies. Precursors, facilitators, and barriers to strategic information sharing were identified through this research. Precursors to strategic information sharing in fresh produce chains were (1) having information available to share, (2) understanding the benefits for the firm and the chain, (3) trust, (4) market orientation, and (5) a culture and belief that information sharing is beneficial. Information technology, industry bodies and pro-active individuals can facilitate strategic information exchanges when the precursors are not limiting the exchanges.The main facilitator of strategic information exchanges was multi-tier face-to-face meetings as they (1) built relationships and trust, and (2) enabled accurate and timely sharing of strategic information. At each point in the chain, the information needed for strategic decision making was different therefore two-way communication is essential to understand what information is important, to whom, and when.