SMEs strategy and scale constraints impact on agri-food supply chain collaboration and firm performance

Abstract

This study examined the impact of collaboration in agri-food supply chains on firm performance and the moderating role of scale constraints and firm strategy. Collaboration was measured by three constructs: horizontal collaboration, vertical collaboration, and customer engagement and SME performance with three variables: growth, value for money and innovativeness. Two strategies were evaluated: price strategy and quality strategy. Three types of scale constraints were assessed: financial, efficiency, and innovation. A survey of 504 agri-SMEs was conducted to test the research hypotheses developed according to the resource based view. Data analysis included a moderated hierarchical analysis. The results show that supply chain collaboration impacts positively on agri-SME performance, whilst it is partially accepted that scale constraints moderate the supply chain collaboration-SME performance relationship. The findings show that SME strategy moderates the supply chain collaboration-SME performance relationship. This study provides evidence that agri-SMEs can strategize their supply chain collaborations by removing scale constraints. When supply chain collaborations help SMEs to overcome financial, efficiency or innovation constraints, then SMEs’ performance improves. Second, this study contributes to the understanding of dynamic capabilities in SMEs using the extended resource based view, which has been overlooked by prior studies.

Keywords:

• Agri-SMEs
• supply chain collaboration
• firm performance
• strategy
• scale constraints
• survey

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

A. Zaridis

Apostolos D. Zaridis holds a B.Sc. in Agricultural Economics and a M.Sc. in Agricultural Economics & Rural Development. He has received a M.B.A. and a Ph.D. in Business Administration with a major in Business Strategy, Entrepreneurship & Innovation, and SMEs Management. He has many years of experience in the private, banking and public sector, and also teaching experience in Business Administration fields, teaching at Hellenic Open University, University of the Aegean, TEI of Epirus, University of Ioannina, National Center of Public and Local Administration, Schools of vocational training and in-house seminars. He has published papers in scientific journals and conferences. He was Session Chairman at International Conferences, and is Editorial Board Member/Reviewer in scientific journals and conferences.

I. Vlachos

Ilias Vlachos is Research Professor in Supply Chain Management at La Rochelle Business School, Excelia-Group, France. Ilias has extensive research and leadership experience and published over 120 articles and publications including 3 edited books on topics such as lean thinking, sustainability and the strategic use of technology in supply chains. Ilias advices companies and organisations such as: the European Technology Platform ´Food for Life´, Scientific Working Group on Sustainable Food Processing and Packaging to shape the Strategic Research Agenda that promotes innovation in Europe and OECD- International Transport Forum (Paris, France) on topics such as Resilience of Multi-modal Supply Chains.

M. Bourlakis

Professor Michael Bourlakis is the Director of Research for Cranfield School of Management and the Head of the Logistics, Procurement and Supply Chain Management Group. Michael is an internationally renowned and established authority in logistics and supply chain management especially in food, retail and sustainable supply chains.  He has been very successful in winning substantial external funding.  Specifically, he has won more than 28 research and consulting projects (as PI or Co-I) totalling more than £27.5 million. Professor Michael Bourlakis has generated more than 250 publications including 68 journal papers and 3 edited books and he sits on the Editorial Board of 15 journals.