scholarly journals Farmers’ Bargaining Power and Input Prices: What Can We Learn from Self-Reported Assessments?

2019 ◽  
Vol 8 (2) ◽  
pp. 63 ◽  
Author(s):  
Agata Malak-Rawlikowska ◽  
Dominika Milczarek-Andrzejewska ◽  
Jan Fałkowski

One of the key challenges in improving our understanding of farmers’ relations with input suppliers is that we do not have direct information about farmers’ bargaining power vis-à-vis their input providers. To overcome this problem, this study used farmers’ self-reported assessments of their position in the supply chain. Using unique micro-survey data from the dairy sector in Poland, we constructed a proxy of farmers’ bargaining power and showed that it helps to explain discounts at which farmers buy feed from input suppliers, in addition to what is explained by the standard variables.

2021 ◽  
Vol 51 ◽  
pp. 100737
Author(s):  
Susana Gago-Rodríguez ◽  
Gilberto Márquez-Illescas ◽  
Manuel Núñez-Nickel

2007 ◽  
Vol 7 (2) ◽  
pp. 143-160 ◽  
Author(s):  
Guillermo Zúñiga-Arias ◽  
Sebastiaan Meijer ◽  
Ruerd Ruben ◽  
Gert Jan Hofstede

By the time a European consumer eats a Costa Rican mango, the product has been traded in several transactions between producers, traders, retailers and consumers. This paper investigates the position of Costa Rican smallholders in the mango supply chain in terms of bargaining power and revenue distribution. It examines data derived using a specially developed research tool: the Mango Chain Game (MCG), a gaming simulation that mimics the negotiation conditions in the Costa Rican mango supply chain. The MCG defines roles for all agents in the chain and records transaction attributes. Five sessions with the MCG were played with different groups of mango producers, resulting in a data set of 82 transactions and 43 bargaining power positions. Bargaining power was assessed at a 10-point Likert scale. Revenue distribution was measured in terms of value added. The results show that self-perceived bargaining power was dependent on negotiation skills, wealth and good partnership of the negotiators, but independent of market imperfections. Revenue distribution was related to the bargaining power of the trading partner, risk perception and the duration of the contract. Conclusions include that using a gaming simulation as data source can help identify less tangible issues in supply chain research, which is a new field of application for gaming simulations. Agency cooperation, skills and being able to bear risks play a role for improving the efficiency of the mango supply chain in Costa Rica as seen from a producers' perspective. The gaming results indicate that initiatives for improving the bargaining power of producers are more promising if they focus on improving skills and relations in trade rather than on solving market imperfections.


2013 ◽  
Vol 655-657 ◽  
pp. 1642-1645
Author(s):  
Tian Tian Chang ◽  
Ji Hui Zhang ◽  
Li Li Wang ◽  
Qing Yue Ma

Cooperation between schedulers plays a key role in supply chain manufacturing. We studied the assembly scheduling system where the non-dominator suppliers cooperate in a bargaining way. Regarding different combinations of the bargaining power factors, the efficiency of cooperation was investigated by numerical experiments. Study shows the relation between the bargaining power and the efficiency.


2015 ◽  
Vol 115 (5) ◽  
pp. 923-950 ◽  
Author(s):  
Zhi Cao ◽  
Baofeng Huo ◽  
Yuan Li ◽  
Xiande Zhao

Purpose – The purpose of this paper is to investigate the influence of competition on supply chain integration (SCI). Design/methodology/approach – Survey data from 617 manufacturers in China were used in this study. Taxonomy with cluster analysis was used to investigate the patterns of competition, and analysis of variance (ANOVA) was used to investigate the influence of these competition patterns on SCI. Findings – Seven competition patterns composed of local competition, international competition, and operational challenges were identified from the survey data. The ANOVA results showed that companies with different patterns achieved significantly different levels of SCI, indicating that higher levels of local competition, international competition, and operational challenges drove higher levels of SCI. Post hoc analyses revealed that international competition had stronger effects than local competition on SCI. Research limitations/implications – The data were collected from a single country, which may limit the generalization of the findings. The data were cross-sectional and thus lacked causal explanatory power. Practical implications – The findings provide suggestions for managers to use different configurations of SCI to adapt to different patterns of competition. Originality/value – This study makes three main contributions to the literature. First, it extends the research on the relationship between competition and cooperation to the supply chain management area. Second, it extends the concept of competition by incorporating not only competitive intensity, but also competitive scope and competitive capability. Third, the use of a configuration approach rather than a dimensional approach to investigate the effects of competition on SCI solves many methodological problems.


2019 ◽  
Vol 31 (2) ◽  
pp. 559-574
Author(s):  
Yung-Heng Lee ◽  
Min-Ren Yan

Purpose The purpose of this paper is to identify the factors influencing bargaining decisions and systematically develop a framework to support collaborative innovation within a strategic alliance. This framework can help companies resolve bargaining problems and facilitate cooperation and effective negotiation of strategic alliances to build successful business relationships. Design/methodology/approach The study considers Taiwanese agents’ bargaining power during negotiations with suppliers, using decision analysis to identify the variables affecting judgment. It uses Delphi–AHP methods to evaluate and develop a multi-criteria model explaining the critical factors to increase agents’ bargaining power and collaborative capability in the negotiation process. Findings Two significant differences between supply chain management practices and managerial specialty are found. Results suggest that better supply chain management practices of agents could assist suppliers in reducing their stock and processing delivery costs, and suppliers could offer more of their marketing planning and strategies to agents to increase confidence in each other’s products. Research limitations/implications It is hoped that this study will encourage more academics in the supply chain management field to investigate the extent to which other bargaining considerations act as facilitating or constraining factors in other Asian and non-Asian economies and other industries. Practical implications This study focuses on collaborative thinking and cooperation to develop and improve positive and relational outcomes in agent–supplier relationships. Originality/value The study analyzed the bargaining power of agents and collaborative innovation in the semiconductor industry from three major perspectives: professional competence, managerial competence and channel efficiency. The study provides effective suggestions for enhancing profits in agency-based cooperation.


2013 ◽  
Vol 694-697 ◽  
pp. 3466-3471
Author(s):  
Qin Lv

A supply chain profit coordination mechanism based on JIT lot-splitting, which involves a two stage supply chain consisted of a supplier and a buyer, is discussed. Based on the bargaining power of supplier, the profit coordination with and without incentives are respectively explored. For the total cost minimizations of buyer and supplier separately, two stage stackelberg leader-follower game models, in which buyer is the leader and supplier is the follower, are established. Supplier applies JIT delivery to reduce buyer’s cost and the total cost of the supply chain via dividing buyer’s order per batch into some batches to deliver. Finally, a numerical example and a simulation analysis are given and the impact of the variation of relative parameters on the total cost saving of buyer, supplier and system is discussed. In addition, the efficiency of game decision on the basis of JIT lot-splitting is proved.


2015 ◽  
Vol 2015 ◽  
pp. 1-15 ◽  
Author(s):  
Yonghong Cheng ◽  
Zhongkai Xiong

To examine when the manufacturer and dominant retailer open their own Internet stores and how setting prices to ensure opening Internet stores are profitable. We consider a two-echelon supply chain with one manufacturer and one dominant retailer. The retailer has a physical store in a monopolist market. Depending on whether the Internet stores are opened successfully by them, we firstly obtain equilibrium prices and profits under four possible supply chain structures. Secondly, we identify several strategic conditions when it is optimal to open an Internet store for the manufacturer and dominant retailer and discuss its implications. It is interesting to note that multichannel retailing is not necessarily the best strategy for the dominant retailer. In addition, we investigate the impacts of problem parameters (the dominant retailer’s bargaining power and consumers’ disutility of purchasing a product from Internet store) on the manufacturer and dominant retailer’s pricing policies. We find that the manufacturer’s optimal price at her Internet store is not always being lower than the dominant retailer’s. Finally, we conduct numerical examples to illustrate the theoretical results.


Author(s):  
Afresco Brazhkin

Numerous studies have stressed the critical nature of aligning a product's attributes to its supply chain design (i.e., supply chain fit). Fisher (1997) developed the concept of supply chain fit, stating that enterprises must evaluate the nature of their products' demand before constructing a supply chain. I extend Fisher's (1997) paradigm by providing a more thorough understanding of when firms should invest in supply chain fit. I argue that assuming that perfect supply chain fit always results in enhanced financial performance is oversimplistic, as the benefits of perfect supply chain fit may be outweighed by the resources expended to attain it. To conduct this research, I will use archival and survey data to examine the moderating effects of six dimensions of environmental uncertainty on the relationship between supply chain fit and financial performance (e.g., munificence, market dynamism, technological dynamism, technical complexity, product diversity, and geographic dispersion).


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