How do well-performed food businesses manage suppliers in emerging economies?
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 September 2023
Issue publication date: 16 November 2023
Abstract
Purpose
This study aims to investigate the supplier selection criteria, relationship quality and level of collaboration in Asian food businesses, while also examining the link between these practices and business performance. The research focusses on food manufacturing and exporting companies in two emerging economies, China and Vietnam.
Design/methodology/approach
Food manufacturing and exporting companies in two emerging economies – China and Vietnam were surveyed and analysed to extract factors that reflect supplier management and business performance along with their relationship by factor analysis and hierarchical regression. Then, a two-step cluster analysis was applied to identify clusters based on supplier management and explore how different business performance groups manage their suppliers.
Findings
Four clusters that are distinct sets of food firms with detailed references about their typical characteristics revealing their business performance and supplier management practices. Also, the study confirms that certificates, reliability and inspection results constitute the factor of quality-related criteria for food firms. It is an interesting insight into what firms prioritise in selecting and maintaining collaboration and relationships with suppliers that reflect actual demanding specifications for supplier conformity.
Research limitations/implications
The study reveals the business status of the studied companies and each group's specific references, such as the criteria they prefer to select suppliers, the relationship quality and the level of collaboration.
Originality/value
The study is a useful reference for both researchers and practitioners to have a comprehensive view of supplier management in the food industry based on the viewpoint of Asian food manufacturers.
Keywords
Acknowledgements
The author would like to thank the experts who participated in this study and the colleagues who helped to contact and visit these firms in China and Vietnam. This work was sponsored by Project 777742 or “GOLF” (EC H2020-MSCA-RISE-2017). Also, the author is grateful to anonymous reviewers and the Editor-in-chief for their constructive and valuable comments on improving this article.
Citation
Nguyen, T.T.B. (2023), "How do well-performed food businesses manage suppliers in emerging economies?", International Journal of Physical Distribution & Logistics Management, Vol. 53 No. 10, pp. 1129-1157. https://doi.org/10.1108/IJPDLM-03-2022-0082
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited