The role of small and medium enterprise and family business distinctions in decision‐making: Insights from the farm echelon

Abstract

AbstractSmall and medium enterprises (SMEs) and family businesses are ubiquitous in global supply chains but differ from large corporations along several dimensions touted as likely to influence their approach to supply chain management. Yet, little research exists that empirically examines how SME and family business distinctions manifest in operations and supply chain management (OSCM) decision‐making. Our study begins to address this important gap by investigating OSCM decisions in the farm echelon—a challenging but critical echelon overwhelmingly composed of small and midsize family farms. Using the hermeneutic method, we delve into the minds of 18 farmers to explore how SME and family business distinctions influence their production and storage decisions. We further examine how these distinctions interact with elements of the supply chain and the institutional environment in which farmers are embedded. Our contextualized understanding offers important implications for supply chain theory, practice, and public policy. We also provide timely guidance on the farmer's perspective amidst increased demands for a farm‐to‐fork experience.