Chain Governance Research Articles

Study on the Indirect Effect Mechanism of Supply Chain Governance on Firm Performance

This paper constructs a theoretical model on the influence mechanism of supply chain governance on firm performance, with information sharing, supplier trust and supply chain integration as intermediary variables and government support as moderating variables. Taking enterprises in Sichuan Province as the investigation objects, this paper empirically studies the relationships among supply chain governance, information sharing, supplier trust, supply chain integration, firm performance, and government support by means of questionnaire survey. The results show that supply chain governance has significant positive effects on information sharing, supplier trust, supply chain integration and firm performance. Government support plays a positive moderate role between supply chain governance and supply chain integration. Supply chain governance will indirectly affect enterprise performance through information sharing, supplier trust and supply chain integration, and the indirect effect is stronger than the direct effect. This indicates that enterprises should standardize supply chain governance, share information efficiently with partners, form a good trust relationship with suppliers, and promote a series of supply chain integration, so as to improve the overall performance of enterprises.

Yield of Bunches of Fresh Oil Palm Fruits (Elaeis Guineenses JACQ.) Grown in Pará: Barrier to Illegal Transport

Objective: The goal of this study was to generate technical and scientific information to support the inspection of transportation of fresh fruit bunches (FFB) of oil palm in the state of Pará and to estimate the average yield curve (AYC) of FFB of varieties of oil palm cultivated in the municipalities of Pará. Theoretical framework: Theories about limited rationality and asymmetric information was applied to production and commercialization negotiations of FFB oil palm in the state of Pará. Econometric modelling and statistical tests were used to estimate the AY curve and to compare the sample averages among the business production, family farming, and the Brazilian Institute of Geography and Statistics (IBGE). Results and conclusion: The maximum AY of FFB oil palm were estimated for the state of Pará, Brazil (16.27 ± 1.46 t/ha), and to the most productive variety, Compacta-Nigeria (23.86 ± 2.24 t/ha). It was evident that AY of FFB for the Family farmers (average 22.63 ± 3.17 t/ha) was higher than that obtained by companies (average of 17.10 ± 4.05 t/ha) and that reported by IBGE (average of 15.98 ± 1.25 t/ha). The IBGE data are not different or superior to those of companies. Research implications: The study estimated the FFB oil palm AY curve by variety cultivated in the state of Pará to enable the traceability of FFB oil palm production and transportation. It validates IBGE data as a mechanism for monitoring the transit of CFF. Originality/value: The CFF yield curve adds unprecedented scientific knowledge to support the traceability of oil palm production. The data provided by this research contributes to reduce the information asymmetry, and to improve the efficiency of chain Governance.

How does supplier digitalization improve customer resource allocation efficiency? The role of supply chain entrainment

PurposeCustomer resource allocation efficiency (RAE) refers to the ability of customers to use, allocate and manage their available resource inputs to produce valuable outputs. This study draws on organizational entrainment theory (OET) to examine how the implementation of supplier digitalization affects customer RAE through supply chain entrainment.Design/methodology/approachBased on supplier and customer data disclosed by Chinese A-share listed firms from 2009 to 2022, this study uses fixed effects panel data models to empirically examine the impact of supplier digitalization on customer RAE and the mechanistic role of supply chain entrainment.FindingsThe results show that supplier digitalization significantly increases customer RAE. It improves RAE by influencing the three dimensions of supply chain entrainment (the bullwhip effect, inventory management coordination and risk management coordination).Practical implicationsThis study provides important insights into how managers can adapt the external digital environments and maintain synchronous operations with their supply partners. Our findings demonstrate how managers can fully leverage the advantages of digitalization of their suppliers to improve their own RAE through supply chain entrainment strategies.Originality/valueThis study introduces the concept of supply chain entrainment to reveal how firms optimize their own resource allocation strategies and achieve efficient operations. Our research enriches the understanding of supply chain governance in the digital age and contributes to the literature on supply chain digitalization.

Regulatory design and interactions in worker‐driven social responsibility initiatives: The Dindigul Agreement

This article explores the rise of worker‐driven social responsibility (WSR) initiatives to combat labour and human rights abuse in global supply chains. We focus on the Dindigul Agreement, a pioneering WSR agreement initiated by an independent, majority Dalit trade union run by women in Dindigul, India, which seeks to address gender‐based violence in garment supply chains. Through key informant interviews and documentary analysis including coding in NVivo 12, we explore the establishment of the Dindigul Agreement, its distinctiveness in relation to other WSR agreements and its interactions with other supply chain governance tools.

Research on Knowledge Payment Product Supply Chain Governance Based on Blockchain: An Evolutionary Game Model

ABSTRACTBlockchain provides a new opportunity to govern the dilemmas in the knowledge payment product supply chain. This paper introduces blockchain into the evolutionary game to explore the behavioral strategies of knowledge providers, platforms, and consumers and to analyze in depth the influence of initial willingness and blockchain‐related factors by the system dynamics. The analysis shows that (1) improving the tripartite initial willingness is conducive to accelerating the process of supply chain governance and making the system reach an ideal state: knowledge providers choose compliance creation, platforms adopt blockchain, and consumers buy authorized product; (2) there are specific thresholds for the blockchain adoption cost and the premium of product brought by blockchain, only when the cost and premium are lower than the thresholds, the system evolves towards the ideal state; (3) when blockchain is adopted, it can effectively inhibit knowledge providers' illegal creation behavior and consumers' piracy behavior by increasing the punishments of platforms on knowledge providers and consumers. The results provide guidance to implement effective governance and the orderly development of knowledge payment industry.

Supply Chain Management for Electric Vehicles: Challenges, Opportunities, and the Path to Scalability

Abstract—As electric vehicles (EVs) gain momentum as a solution to reduce greenhouse gas emissions and fossil fuel dependence, their supply chains become increasingly complex, particularly for lithium-ion batteries (LIBs), which are crucial for EV performance, safety, and longevity. This paper reviews existing literature on several key aspects of the EV supply chain, focusing on thermal management systems (TMS), lifecycle environmental assessments, closed- loop supply chains (CLSCs), and the impacts of global disruptions like the COVID-19 pandemic. Research by Murugan et al. (2022) underscores the importance of improving TMS for LIBs, noting that experimental validation remains sparse despite advances in numerical modeling. In addition, Rüdisüli et al. (2022) highlight the environmental benefits and limitations of different mobility technologies, emphasizing the need for advancements in seasonal energy storage systems. Gu et al. (2018) discuss the challenges of establishing profitable CLSCs for EV batteries, where reuse improves sustainability, but recycling faces economic hurdles. Finally, the analysis of Wen et al. (2021) on the COVID-19 pandemic’s impact shows significant disruptions to the Chinese EV market and raises concerns about the global EV supply chain’s resilience. This review identifies gaps in the literature, such as the need for real-world validation of models, exploration of alternative battery chemistries, and improved supply chain governance, all of which are essential for advancing the EV industry toward sustainability. Keywords—Electric Vehicles, Supply Chain Management, Lithium-ion Batteries, Thermal Management Systems, Closed-Loop Supply Chains, Sustainability, Greenhouse Gas Emissions, Lifecycle Assessment, Resource Dependencies, Circular Economy.

Managing resources for digital transformation in supply chain integration: The role of hybrid governance structures

Digital transformation (DT) plays a crucial role in shaping operations and supply chain management. Through real-time data sharing and automated decision-making systems, DT fosters supply chain integration (SCI), facilitated by key digital technologies like Internet of Things (IoT), cloud computing, big data, and artificial intelligence. Effective DT necessitates managing organizational digital resources encompassing technical domains such as software, hardware, and data science, alongside financial resources and managerial capabilities. Navigating the complexities of DT requires strategic decisions in supply chain governance regarding the management of these digital resources. While in-house development offers control and differentiation, it entails organizational and financial risks. Conversely, outsourcing digital activities reduces risks but increases technological dependence. Hybrid governance (concurrently sourcing in-house and outsourcing activities) presents a reconciliatory approach that can be valuable for DT in SCI. This study investigates the contribution of hybrid governance for DT, focusing on its effects on SCI and delivery performance. Through quantitative analysis of 379 manufacturing companies, our findings reveal that hybrid governance positively influences the digitalization of SCI and contributes to delivery performance through a digitalized SCI. Our research contributes to the theoretical understanding of hybrid governance in DT, offering insights into strategic digital resource management for SCI. It underscores the importance of balancing internal and external resources to optimize supply chain performance in the digital era.

Cattle supply chain fidelity in the Brazilian Amazon: key considerations for deforestation monitoring

Abstract Supply chain governance (SCG) is an increasingly important approach to man- age environmental protection and human rights in agricultural systems across the tropics. SCG helps relay the preferences of international consumers to producers and fills environmental policy gaps. Brazil’s Zero-Deforestation Cattle Agreements (CA) are one of the longest-standing examples of SCG but shortcomings in implementation have reduced their conservation impacts. Chief among the reasons for their limited effect is that slaughterhouses monitor only the suppliers they buy from directly. This does not account for the complex supply network upstream of the direct sale, whose dynamics are also poorly understood. We provide the first comprehensive characterization of the strength and duration of cattle supply chain relationships based on animal transaction records from across the Brazilian Amazon. Whereas direct supply relationships (from ranchers to slaughterhouses) are relatively few and long-lasting, upstream relationships between ranchers are numerous and short-lived. Expanding monitoring to include these upstream sup- pliers increases the number of monitored transactions by an order of magnitude. However, 1% of the largest direct suppliers sell nearly half of cattle to CA slaughterhouses. More comprehensive upstream monitoring of only these prolific suppliers could greatly increase coverage at a fraction of the cost. While it may be challenging to monitor the entire supply network, significant advancements are within reach.

Will the EU deforestation-free products regulation (EUDR) reduce tropical forest loss? Insights from three producer countries

The European Union regulation on deforestation-free products (EUDR) represents a policy innovation with important implications for the governance of global commodity chains. We discuss the risks and limitations of this policy derived from an ex-ante assessment of the robustness of its theory of change. For doing so, we use insights from the literature on zero-deforestation commitments and other private standards in value chains and from trade and deforestation patterns in three relevant producer countries (Brazil, Colombia and Indonesia). Despite the potentially positive symbolic effect in mobilizing a global agenda for combating deforestation, the EUDR faces several drawbacks and risks associated with three of its constitutive features: To be demand-oriented, having the value chain as the unit of intervention and holding a high degree of unilateralism. We conclude that to be effective in curbing tropical deforestation, the Regulation must be complemented with international cooperation aiming to strengthen national policies with a territorial approach, as well as social movements addressing the underlying causes of forest loss and human rights violations in the territories where it takes place.

Smallholder Challenges of Social and Economic Upgrading in Agricultural Value Chains: A Cross-country, Cross-crop Comparison

This study is based on field research conducted by an international team of researchers investigating the opportunities for social upgrading of smallholder farm owners and tenants and their workers in the Global South. The main objective has been to assess the influence of crop characteristics, end markets, and value chain governance (including product and process standards), as well as national political, economic, and cultural contexts, on the conditions of farmers and farmworkers. Accordingly, the selected crops differ along the axes of domestic versus international end markets and short versus long shelf-life: coffee (cash crop), rice (staple crop), and mangoes (perishable crop). The selected countries are Bangladesh, Brazil, Colombia, Ghana, India, Pakistan, and Vietnam. Our main findings relate to the importance of collective action by key stakeholders, including smallholders and a supportive state, for economic and social upgrading.

Blockchain-Enabled Provenance and Supply Chain Governance for Indigenous Foods and Botanicals: A Design Approach Study

Ensuring Indigenous producers realize and capture provenance value from the native foods and botanicals supply chain is a key part of achieving economic, community, and ecological sustainability for Indigenous communities. Utilizing blockchain technology to support validated provenance claims throughout supply chain processes is an important intervention toward achieving this objective. This paper presents the preliminary results of an ongoing project in which blockchain technology underpins a “whole of supply chain” approach to addressing issues of provenance value claims and how these are validated within a digitalized environment. The paper focuses on the overarching objectives of achieving provenance value-based growth, and sustainability within a collaborative governance framework that reflects Indigenous community practice. We discuss how technology design and application developments have been undertaken in the context of a cooperative governance model, with the long-term view of enabling ecosystem participants to share responsibility for system development, operations, and benefits. The paper presents a provenance claims approach anchored in a Resources, Events, and Agents (REA) framework. It showcases the first version of a digital application that was developed by engaging a user community. How the application may be applied to other sectors is also briefly explored.

The importance of performance measurement and management in sustainable supply chain governance among SMEs

PurposeThis study presents evidence of the role of performance measurement and management (PMM) in sustainable supply chain governance. This study tests a model hypothesizing whether it is the PMM itself or the mediating effect of supply chain governance that is essential for both business and sustainability performance.Design/methodology/approachThis study builds on a survey of 274 SMEs in Finland.FindingsThe findings indicate that PMM does not directly contribute to SMEs’ business or sustainability performance. Supply chain governance mediates the relationship between PMM and business performance. Business performance also enhances sustainability.Practical implicationsThese findings can guide managers in managing company relationships with customers and suppliers. The mediating role of supply chain governance highlights the potential of PMM to enhance performance. Without supply chain governance, the PMM, while efficient in traditional business practices, may lose its effectiveness because of the pressure to advance sustainability values within firm operations.Originality/valueThe role of PMM in enhancing supply chain sustainability is frequently overlooked in the existing research, necessitating an empirical evaluation of PMM’s impact on supply chain sustainability. This study addresses this gap by focusing on the SME context, where the pressure to adopt sustainable practices is increasing, yet SMEs employ PMM less frequently than larger firms.

Digital governance for supplier opportunism: The mediating role of supplier transparency

Curtailing supplier opportunism is a critical concern for both business practitioners and supply chain researchers. However, ambiguity remains regarding the effective deployment of digital technologies (DTs) within supply chain practices to address this issue. Drawing on the asset orchestration perspective, we consider two DT deployment manners (i.e., breadth and depth) and examine their impacts on supplier transparency and supplier opportunism. We investigate 323 Chinese firms and use structural equation modeling to test the proposed hypotheses. We also conduct a scenario-based experiment involving 144 business managers to improve the robustness of our results. We find that although two DT deployment manners positively affect suppliers' cost and relationship transparency, only relationship transparency exhibits a statistically significant negative association with suppliers’ weak opportunism, rather than strong opportunism. More interestingly, of the two DT deployment manners, relationship transparency merely mediates the breadth – weak opportunism association. We advance research on supply chain governance by elucidating the nuanced role of DT deployment in curbing supplier opportunism. We also offer significant insights for firms seeking to reassess their digital supply chain plans, improve engagement with suppliers, and curb unethical practices.

Family firms and the governance of global value chains

The current evolution of global value chains (GVCs) calls for moving beyond the “unipolar” view of lead multinational enterprises (MNEs) as sole rulers to examine how their characteristics and those of partner firms affect GVC governance. In response to this call, we focus on family firms, which are the most ubiquitous organizational form worldwide and represent the majority of firms participating in GVCs. Unlike non-family firms, these organizations face distinct mixed gambles, driven by both economic and non-economic goals. However, internalization theory and the associated global factory model, which explain GVC governance, rely solely on economic assessments, limiting our understanding and predictability of MNE behavior. Therefore, in this study, we show how location decisions, degree of internalization, and relationship management in GVCs differ from the conventional global factory model when family firms are involved as lead MNEs and/or partners. By analyzing how comparative efficiency considerations change when family firms are involved, we offer implications for internalization theory and provide a more comprehensive framework for understanding control and trust dynamics in GVCs. Thus, we pave the way for future research to revise and enrich international business theories, taking into account the distinctiveness and heterogeneity of family firms.

Digital product passport for sustainable and circular supply chain management: a structured review of use cases

ABSTRACT Digital product passport (DPP) is a key regulatory element of the latest European Union’s Circular Economy Action Plan. By enhancing product traceability and supply chain transparency, its upcoming mandatory implementation aspires to improve resource circularity, cut emissions, and strengthen supply chain governance. However, the extant literature lacks a comprehensive understanding of DPP use cases in the supply chain and how they enable sustainable and circular supply chain management (SCM). To address this knowledge gap, this study first provides an overview of the current state of DPP in policy and practice. Based on a structured review of 82 DPP supply chain use cases in academic literature, we synthesise the functional areas that DPP can add value to improving supply chain sustainability and circularity. Informed by the review findings, we first discuss theoretical and practical implications of DPP-enabled sustainable and circular SCM, and then prioritise research needs in the emerging research domain.

How quality conventions shape the governance of the dairy value chains of Senegal

How quality conventions shape the governance of the dairy value chains of Senegal

The Influence of value chain governance on innovation performance: A study of Italian suppliers

The Influence of value chain governance on innovation performance: A study of Italian suppliers

Building responsible and sustainable supply chain frameworks: limits of international investment law and the CSR initiatives taken by the EU and China

ABSTRACT Supply chains play a pivotal role in global economic relations, fostering growth, employment, and poverty alleviation. Multinational enterprises (MNEs) are central actors in these chains, bearing responsibilities towards workers and the environment. Corporate Social Responsibility (CSR) standards guide MNEs in assessing the societal and environmental impacts of their activities, though these standards remain largely voluntary. Recent investment treaty practice shows a trend to incorporate CSR provisions in international investment agreements (IIAs), but such clauses fail to impose direct human rights, labour and environmental obligations on investors. Amidst this landscape, the EU and China, major players in global trade and investment, have established diverging legal and policy frameworks to build responsible and sustainable supply chains. Considering these developments, the objectives of this article are twofold. First, the article explores the integration of CSR in international investment law. Second, it evaluates the different CSR initiatives taken by the EU and China that frame their foreign direct investments. Focusing on EU–China FDI relations, the article delineates implications for global supply chain governance offering insights into the evolving landscape of CSR frameworks, and the plagued path in adopting mandatory corporate responsibility standards.

Bioeconomic innovations breeding more sustainable innovations: A value chain perspective from Argentina

AbstractInnovations are crucial for the transition to a sustainable bioeconomy. They are embedded in and linked to complex value chains, but these interrelationships have not received much attention in the empirical literature yet. Using current typologies of four bioeconomic innovation types and six value chain models, this case study analyzes detailed data from 11 companies in Argentina to identify the drivers of sustainable innovations, their linkage to different value chain characteristics, and the main innovation types. The results show that certain factors such as supply and demand, interindustry cooperation and R&D, diversification strategies, personal values and the search for sustainable solutions particularly shape certain types of innovation. The structure and governance of the value chains influence the type of sustainable innovation. Innovations take place at different levels, and in succession, they complement each other and can thus make the bioeconomy more sustainable. Therefore, appropriate policies to promote the bioeconomy in Argentina and beyond should consider the type of value chains and specific innovation systems involved.

Smart mix politics: business actors in the formulation of global supply chain regulation

The European Union and other advanced economies are turning to mandatory due diligence regulation to address environmental and human rights risks in their global supply chains. This shift is accompanied by calls for ‘smart regulation’ that combines public legislation with private governance instruments and new supporting measures in the producer countries of the Global South. We study the smart regulation agenda in the case of the European Union Deforestation Regulation. We reveal how its progressive rhetoric masks a conservative undertone as business actors and their civil society partners aim to safeguard their vested interests in the age of public supply chain regulation. However, by tracing their lobbying efforts throughout the policy formulation process, we show how this does not imply en bloc support for voluntary, softer forms of regulation. Moreover, these actors exhibit varying motivations and preferences for involving Southern actors in such a mix. Consequently, rather than forming a cohesive policy coalition, their preferences span from conservative to progressive, resulting in new alliances and divisions in this time of regulatory change. By untangling the complexities of ‘smart mix politics’, this article advances critical research into the evolving role, positioning, and influence of business actors in global supply chain governance.