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The Impact of Supply Chain Relationship on Food Quality
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ScienceDirect ScienceDirect
Available online at www.sciencedirect.com Procedia Procedia Computer Computer Science00 Science00 (2018) (2018) 000–000 000–000
ScienceDirect
www.elsevier.com/locate/procedia www.elsevier.com/locate/procedia
Procedia Computer Science 131 (2018) 860–865
8th 8th International International Congress Congress of of Information Information and and Communication Communication Technology Technology (ICICT-2018) (ICICT-2018)
The The Impact Impact of of Supply Supply Chain Chain Relationship Relationship on on Food Food Quality Quality Gang Gang Liu一 Liu一 School School of of Economy Economy and and Management, Management, Tianjin Tianjin Agricultural Agricultural University, University, jinjing jinjing road road 22 22 in in Xiqing Xiqing district, district, Tianjin Tianjin 300384, 300384, china china
Abstract Abstract The The increasingly increasingly complex complex and and extended extended food food supply supply chain chain increases increases the the risk risk of of food food quality. quality. In In order order to to analyze analyze how how to to promote promote quality cooperation by improving the supply chain relationship, this study developes a conceptual model incorporating quality cooperation by improving the supply chain relationship, this study developes a conceptual model incorporating supply supply chain chain relationship relationship and and quality quality cooperation cooperation for for food food safety, safety, and and the the model model is is tested tested by by the the collecting collecting data data from from china. china. The The results results show which include include trust trust and and show that that supply supply chain chain relationship relationship management management for for food food safety safety can can be be defined defined as as aa construct construct which communication, communication, and and successful successful supply supply chain chain relationship relationship has has aa postive postive impact impact on on the the quality quality coperation coperation for for food food safety. safety. © B.V. © 2018 2018 The The Authors. Authors. Published Published by by Elsevier Elsevier Ltd. B.V. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/) Peer-review under responsibility of organizing Peer-review under responsibility of organizing committee committee of of the the 8th 8th International International Congress Congress of of Information Information and and Communication Communication Selection and(ICICT-2018). peer-review under responsibility of the scientific committee of the 8th International Congress of Information and Technology Technology (ICICT-2018). Communication Technology. Keywords: Keywords: Supply Supply chain chain relationship, relationship, food food safety, safety, quality quality cooperation, cooperation, supply supply chain chain management management
1. 1. Introduction Introduction Food Food quality quality problems problems have have been been paied paied more more attention attention by by public, public, government, government, and and food food industry industry in in past past 10 10 years. years. The increasingly complex and extended food supply chain increases the risk of food quality. Many The increasingly complex and extended food supply chain increases the risk of food quality. Many different different stakeholders stakeholders are are involved involved in in the the food food supply supply chain chain from from farmland farmland to to plate; plate; any any problem problem in in different different stage stage of of supply supply chain will lead to inferior food. For example, farmers are generally in weak position in food supply chain. The chain will lead to inferior food. For example, farmers are generally in weak position in food supply chain. The unfair unfair or or sharp sharp practice practice of of core core enterprises enterprises will will increase increase farmers' farmers' perceived perceived risk risk and and opportunism opportunism behavior. behavior. Thus Thus bring bring the the damage damage to to the the relationship relationship of of supply supply chain chain and and the the hidden hidden danger danger to to food food safety. safety. Many Many food food quality quality problems problems are are root root in in relational relational conflict conflict and and short-term short-term behavior behavior in in supply supply chain. chain. The The poor poor supply supply chain chain relationship relationship is is an an important driving force for suppliers to engage in opportunistic behavior. It is very necessary for firms to estabish important driving force for suppliers to engage in opportunistic behavior. It is very necessary for firms to estabish sucessful sucessful supply supply chain chain relationship relationship in in order order to to control control the the food food quality quality better. better.
** Corresponding Corresponding author. author. Tel.: Tel.: +86-022-23781287; +86-022-23781287; fax: fax: +86-022-23781287. +86-022-23781287. E-mail E-mail address address :[email protected] :[email protected] © © 2018 2018 The The Authors. Authors. Published Published by by Elsevier Elsevier B.V. B.V. This This is is an an open open access access article article under under the the CC CC BY-NC-ND BY-NC-ND license license https://creativecommons.org/licenses/by-nc-nd/4.0/) https://creativecommons.org/licenses/by-nc-nd/4.0/) Selection and peer-review under responsibility of the scientific committee of the 8th International Selection and peer-review under responsibility of the scientific committee of the 8th International Congress Congress of of Information Information and and Communication Communication Technology Technology 1877-0509 © 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/) Selection and peer-review under responsibility of the scientific committee of the 8th International Congress of Information and Communication Technology 10.1016/j.procs.2018.04.286
2
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
861
2. Literature Review Successful business relationship is very important for stakeholders in food supply chain. Indexs, such as time, cost, flexibility and quality are important indicators for evaluating supply chain performance (Cai, 2009). Beth et al. (2003) pointed out that developing long-term partnership is the key to the management of supply chain, even more important than investing in modern technology. A good supply chain relationship has a positive impact on product quality improvement and cost reduction (Fynes, 2005). Handfield&Bechtel (2002) proposed that relationship structure and trust can play an important role in improving supply chain responsiveness. Keller (2002) suggested that the performance of supply chain maybe improved through long-term, mutually beneficial relationships in supply chain. Maintaining high food quality is the most important index for the performance of food supply chain (Rong et al., 2011). Fynes et al. (2004) identified four elements to measure the quality of supply chain relationship including trust, communication, cooperation and adaptation. Lages et al. (2005) developed a conceptual model to analyze the key dimensions for supply chain relationship which include communication, information sharing, satisfaction with relationship and long-term relationship oriented. Su et al. (2008) suggested that supply chain relationship quality has an important postive impact on relationship frequency and relationship persistence, and it contains five dimensions: trust, communication, adaptation, cooperation, and atmosphere. Ding et al. (2014) fined that four elements in food supply chain management are positively related to food quality and safety, including trust, strategic alliance, commitment, and information quality. This study intends to investigate how supply chain relationship impact on food quality and safety. In the paper, the author will analyze the construct of supply chain relationship on quality cooperation for food safety, develop the theoretical model and carry out empirical test; finally the paper proposes the main findings of research and practical implications. 3. Hypotheses Development Supply chian relationship can be defined as an agreement formed between two or more independent stakeholders within a supply chain to ensure that a specific goal or interests is achieved. The paper reviews the literature related to supply chain relationship (table1), and develops the concept framework shown in Fig1. In the following sections, the paper discusses each of components of supply chain relationship, and develops hypotheses about how supply chain relationship affect food quality. Table 1.Summary of Supply Chian Relationship Dimensions Authors Fynes et al(2004) Min and Mentzer (2004) Lages et al (2005) Su et al(2008) Prajogo and Olhager (2012) Ding et al (2014)
Key dimensions trust, communication, cooperation and adaptation information sharing, long-term relationship, agreed vision&goals, risk&reward sharing, agreed supply chain leadership, process integration, cooperation communication, information sharing, satisfaction with relationship, long-term relationship oriented communication, trust, cooperation, adaptation, atmosphere long-term relationships, information technology and sharing, logistics integration trust, strategic alliance, commitment, and information quality
Communication Trust
Quality cooperation
Adaption Fig. 1. Conceptual framework
Food quality
862
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
3
3.1. Supply chain relationship and quality cooperation In the papper, quality cooperation means that the cooperation and concerted effort of the members within food supply chain to improve the quality of food. First, quality cooperation is based on a good supply chain relationship; the members of food supply chain should establish a long-term, stable partnership. One time game is easy to stimulate opportunism behavior. Second, as the core enterprise of supply chain, some measures of supply chain management should be taken to improve supply chain relationship quality, and then guaranteeing food safety in supply chain. 3.2. Trust Trust can be described as the degree to which a firm believe that the supplier is competent and honest. There exists information asymmetry in food supply chain, which can reduce mutual trust. Mutual distrust between members in supply chain may lead to short term act and poor supply chain relationship. Trust building is the foundation of long-term cooperation in supply chain. Trust can affect the behaviors of partners in food supply chain. Many food safety problems lie in the lack of trust in the supply chain, then carrying out the immoral behavior. The higher the degree of trust, the easier to take quality cooperation behavior by partners in food supply chain. H1 trust will be positively related to quality cooperation. 3.3. Communication Anderson and Narus (1990) defined communication as ‘‘sharing meaningful information between firms timely through formal as well as informal ways.” Communication enable stakeholders in food supply chain to share critical and proprietary information in order to reduce conflict and distrust among them. Timely and efficient communication has a positive effect on quality control in food supply chain. Effective communication enable partners better understangding the common goal of food quality, and dealing with the conflict in food supply chain. H2 communication will be positively related to quality cooperation. 3.4. Adaption Adaptation refers to the extent to which partners make specific investment in the relationship of supply chain (Ford and Håkansson, 2006). Relationship-specific investments could reduce the distrust and opportunistic behavior of memebers in supply chain. Relationship-specific investments can be seen as a commitment in business, and enhance mutual trust in supply chain. The extent of adaption is the basis for quality cooperation, especially when the power of member in supply chain is not equal. It is know that the adaption involve technical support, financial support, and sales support. H3 adaption will be positively related to quality cooperation. 4. Methodology The instrument for examining the previously stated hypotheses was a questionnaire survey. All items in the questionnaire were measured by Likert five-point scales(5 means strongly agree, and 1 means strongly disagree ). The formal survey was conducted by students based on the guidance of the teacher. Most of questionnaires were collected from Shandong province in china. Finally 129 questionnaires were usable. 5. Analysis and findings In the study, the structural equation model is used to verify the theoretical model, taking LISREL as software tool. Before estimating the structural model, the measurement model which including convergent validity and discriminant validity assessment should be constructed. Therefore the confirmatory factor analysis (CFA) approach
4
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
863
is taken for estimating the convergent validity and discriminant validity, and then the paper will verify the theoretical model through path analysis method. 5.1. Measurement model The validity of the fitness and the scales of the measurement model were estimated through the method of confirmatory factor analysis (CFA) on 4 latent variables (communication, trust, adaption, quality cooperation). The goodness of fit index of the estimated model is shown in table2 below: Table 2. Fit Statistics for Structural Model
Fit statistics
3.080
RMSEA
CFI
NFI
GFI
AGFI
0.0
1.0000
0.8413
0.9574
0.9409
Validity analysis generally includes construct validity and content validity. All items used in the questionnaire are come from the existing literature, therefore they have been verified by related researchs, and have good content validity. The construction validity is mainly used to theoretical hypothesis and the test of the theoretical hypothesis. Construct validity can be divided into convergent validity and discriminant validity. Convergent validity is such validity when multiple indicators of the same structure are measured to be aggregated or connected to each other. Discriminant validity is also called the divergent validity, which is contrary to the aggregation validity, means there is no correlation. As shown in table3, all standardized loadings are statistically significant (P<0.1), therefore, the convergent validity was demonstrated. Table3. Confirmatory factor analysis Construct Trust T1 T2 T3 T4 T5 T6 Communication C1 C2 C3 C4 Adaption A1 A2 A3 Quality cooperation Q1 Q2 Q3
Standardized loading
t value
0.6170 0.3126 0.2695 0.3216 0.4963 0.4492
6.2299 3.0483 2.6146 3.1403 4.9694 4.4676
0.2416 0.2534 0.2497 0.4429
2.3589 2.4588 2.4284 3.7151
0.3398 0.2374 0.4136
3.0702 2.3526 3.4545
0.2819 0.3210 0.3680
1.8700 1.9482 2.0604
5.2. structural model As seen from the empirical results (table 4), hypothesess H1 and H2 are supported, but H3 isn’t supported. The adaption has no significant contribution to the improvement of quality cooperation in food supply chain. The study suggests that the reason for the above results may be due to the low sustainability of the trade between the leading enterprises and the suppliers. Rokkan et al. (2003) suggested that the effect of specific investment may vary with the sustainability of relationship. The specific investment has no effect on reducing opportunism behavior if the sustainability of relation is low.The validated model is shown in Fig 2.
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
864
5
Table4. Path analysis of structural model Hypotheses H1 H2 H3
Path communication-quality cooperation trust- quality cooperation adaption- quality cooperation
Communication Trust Adaption
Path Standardized loading 0.2436 0.6883 -0.0305
result Supported Supported Unsupported
0.2436 0.6883
Quality cooperation
Food quality
-0.0305 Fig. 2. Validated model and path coefficients
6. Disussion and implications The relationship of supply chain has an important impact on the quality of food. The paper identifies two key factors for improving the relationship of food supply chain which are trust and communication. The main conclusions of the study are as follows: Firstly, mutual trust between the members of supply chain will directly affect the supply chain cooperation. Trust is a prerequisite for the commitment of members within supply chain to ensure the quality of food. To estabish mutual trust, the firm should view the suppliers as the partners, but not regard them as competitors. If the firm only consider their own interests, it will be difficult to establish long-term partnerships with suppliers, and then more difficult to realize mutual trust. So the benefit of suppliers should be taken into account in the decision-making process. Meanwhile, honour an agreement is the most important way for firms to be trusted by partners. Secondly, good communication mechanism should be established among the members of food supply chain. Communication is the process of transmitting information and influencing each other between individuals or groups. Communication contributes to the stability and development of relationships among partners. It is very necessary for firms in food supply chain to establish a perfect communication mechanism for overcoming the problem of inconsistency of interests and goals. The stakeholders of food supply chain should agree on the importance of food safety goals. Establishing the system of information sharing is the useful way to communication, including shared content, shared channel (regular meetings or online channel), et al. At the same time, the conflict resolution mechanism should be set up, which is designed for conciliating conflict and risk. Another effective way for strengthening the communication is collaborative decision-making, some key elements such as income distribution, risk sharing, and food quality standards are agreed among members in food supply chain before production, so as to ensure that the whole supply chain works hard for the goal of food safety. Acknowledgements This work was partially supported by the key base of the humanities and social sciences—the open fund project of the rural modernization research center in Tianjin, also supported by the innovation and entrepreneurship training program for college students in Tianjin(Project No: 201510061029), and supported by the investigation and research project of Tianjin Rural Work Committee(TJNWY2017001-02), china. References 1. Cai J, Liu X, Xiao Z, Liu J. Improving supply chain performance management: a systematic approach to analyzing iterative KPI accomplishment. Decision Support Systems 2009;46:512-521. 2. Beth S, Burt DN, Copacino W, Gopal C, Lee HL, Lynch RP, Morris S. Supply chain challenges—Building relationships. Harvard Bus. Rev2003;.81: 64–73.
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3. Fynes B, Voss C, Búrca S. The impact of supply chain relationship dynamics on manufacturing performance. International Journal of Production Economics 2005;96:339-354. 4. Handfielda RB, Bechtel C. The role of trust and relationship structure in improving supply chain responsiveness. Industrial Marketing Management 2002;31: 367– 382 5. Keller SB. Internal relationship marketing: a key to enhanced supply chain relations. International Journal of Physical Distribution & Logistics Management 2002; 32:649-668. 6. Rong A, Akkerman R, Grunow M. An optimization approach for managing fresh food quality throughout the supply chain. International Journal of Production Economics 2011;131: 421-429 7. Fynes B, Búrca S, Marshall D. Environmental uncertainty, supply chain relationship quality and performance. Journal of Purchasing & Supply Management 2004;10(4-5):179-190. 8. Large RO. External communication behaviour of purchasers—effect on supplier management performance. Journal of Purchasing&Supply Management 2005;11:28-41.. 9. Su Q, Song YT, Li Z, Dang JX. The impact of supply chain relationship quality on cooperative strategy. Journal of Purchasing & Supply Management 2008;14:263-272. 10. Ding MJ, Matanda MJ, Parton KA, Jie F. Relationships between quality of information sharing and supply chain food quality in the Australian beef processing industry. International Journal of Logistics Management 2014; 25: 85-108 11. Min S, Mentzer JT. Developing and measuring supply chain management concepts. Journal of Business Logistics 2004; 25:63-99. 12. Prajogo D, Olhager J. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. International Journal of Production Economics 2012;135:514-522. 13. Anderson JC, Narus JA. A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing 1990;54:42-58. 14. Ford D, Håkansson H. IMP—some things achieved: much more to do. European Journal of Marketing 2006; 40(3-4):.248-258. 15. Rokkan A, Wathne K. Specific investments in marketing relationships: expropriation and bonding effects. Journal of Marketing Research 2003;40:210-224.
ScienceDirect ScienceDirect
Available online at www.sciencedirect.com Procedia Procedia Computer Computer Science00 Science00 (2018) (2018) 000–000 000–000
ScienceDirect
www.elsevier.com/locate/procedia www.elsevier.com/locate/procedia
Procedia Computer Science 131 (2018) 860–865
8th 8th International International Congress Congress of of Information Information and and Communication Communication Technology Technology (ICICT-2018) (ICICT-2018)
The The Impact Impact of of Supply Supply Chain Chain Relationship Relationship on on Food Food Quality Quality Gang Gang Liu一 Liu一 School School of of Economy Economy and and Management, Management, Tianjin Tianjin Agricultural Agricultural University, University, jinjing jinjing road road 22 22 in in Xiqing Xiqing district, district, Tianjin Tianjin 300384, 300384, china china
Abstract Abstract The The increasingly increasingly complex complex and and extended extended food food supply supply chain chain increases increases the the risk risk of of food food quality. quality. In In order order to to analyze analyze how how to to promote promote quality cooperation by improving the supply chain relationship, this study developes a conceptual model incorporating quality cooperation by improving the supply chain relationship, this study developes a conceptual model incorporating supply supply chain chain relationship relationship and and quality quality cooperation cooperation for for food food safety, safety, and and the the model model is is tested tested by by the the collecting collecting data data from from china. china. The The results results show which include include trust trust and and show that that supply supply chain chain relationship relationship management management for for food food safety safety can can be be defined defined as as aa construct construct which communication, communication, and and successful successful supply supply chain chain relationship relationship has has aa postive postive impact impact on on the the quality quality coperation coperation for for food food safety. safety. © B.V. © 2018 2018 The The Authors. Authors. Published Published by by Elsevier Elsevier Ltd. B.V. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/) Peer-review under responsibility of organizing Peer-review under responsibility of organizing committee committee of of the the 8th 8th International International Congress Congress of of Information Information and and Communication Communication Selection and(ICICT-2018). peer-review under responsibility of the scientific committee of the 8th International Congress of Information and Technology Technology (ICICT-2018). Communication Technology. Keywords: Keywords: Supply Supply chain chain relationship, relationship, food food safety, safety, quality quality cooperation, cooperation, supply supply chain chain management management
1. 1. Introduction Introduction Food Food quality quality problems problems have have been been paied paied more more attention attention by by public, public, government, government, and and food food industry industry in in past past 10 10 years. years. The increasingly complex and extended food supply chain increases the risk of food quality. Many The increasingly complex and extended food supply chain increases the risk of food quality. Many different different stakeholders stakeholders are are involved involved in in the the food food supply supply chain chain from from farmland farmland to to plate; plate; any any problem problem in in different different stage stage of of supply supply chain will lead to inferior food. For example, farmers are generally in weak position in food supply chain. The chain will lead to inferior food. For example, farmers are generally in weak position in food supply chain. The unfair unfair or or sharp sharp practice practice of of core core enterprises enterprises will will increase increase farmers' farmers' perceived perceived risk risk and and opportunism opportunism behavior. behavior. Thus Thus bring bring the the damage damage to to the the relationship relationship of of supply supply chain chain and and the the hidden hidden danger danger to to food food safety. safety. Many Many food food quality quality problems problems are are root root in in relational relational conflict conflict and and short-term short-term behavior behavior in in supply supply chain. chain. The The poor poor supply supply chain chain relationship relationship is is an an important driving force for suppliers to engage in opportunistic behavior. It is very necessary for firms to estabish important driving force for suppliers to engage in opportunistic behavior. It is very necessary for firms to estabish sucessful sucessful supply supply chain chain relationship relationship in in order order to to control control the the food food quality quality better. better.
** Corresponding Corresponding author. author. Tel.: Tel.: +86-022-23781287; +86-022-23781287; fax: fax: +86-022-23781287. +86-022-23781287. E-mail E-mail address address :[email protected] :[email protected] © © 2018 2018 The The Authors. Authors. Published Published by by Elsevier Elsevier B.V. B.V. This This is is an an open open access access article article under under the the CC CC BY-NC-ND BY-NC-ND license license https://creativecommons.org/licenses/by-nc-nd/4.0/) https://creativecommons.org/licenses/by-nc-nd/4.0/) Selection and peer-review under responsibility of the scientific committee of the 8th International Selection and peer-review under responsibility of the scientific committee of the 8th International Congress Congress of of Information Information and and Communication Communication Technology Technology 1877-0509 © 2018 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/) Selection and peer-review under responsibility of the scientific committee of the 8th International Congress of Information and Communication Technology 10.1016/j.procs.2018.04.286
2
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
861
2. Literature Review Successful business relationship is very important for stakeholders in food supply chain. Indexs, such as time, cost, flexibility and quality are important indicators for evaluating supply chain performance (Cai, 2009). Beth et al. (2003) pointed out that developing long-term partnership is the key to the management of supply chain, even more important than investing in modern technology. A good supply chain relationship has a positive impact on product quality improvement and cost reduction (Fynes, 2005). Handfield&Bechtel (2002) proposed that relationship structure and trust can play an important role in improving supply chain responsiveness. Keller (2002) suggested that the performance of supply chain maybe improved through long-term, mutually beneficial relationships in supply chain. Maintaining high food quality is the most important index for the performance of food supply chain (Rong et al., 2011). Fynes et al. (2004) identified four elements to measure the quality of supply chain relationship including trust, communication, cooperation and adaptation. Lages et al. (2005) developed a conceptual model to analyze the key dimensions for supply chain relationship which include communication, information sharing, satisfaction with relationship and long-term relationship oriented. Su et al. (2008) suggested that supply chain relationship quality has an important postive impact on relationship frequency and relationship persistence, and it contains five dimensions: trust, communication, adaptation, cooperation, and atmosphere. Ding et al. (2014) fined that four elements in food supply chain management are positively related to food quality and safety, including trust, strategic alliance, commitment, and information quality. This study intends to investigate how supply chain relationship impact on food quality and safety. In the paper, the author will analyze the construct of supply chain relationship on quality cooperation for food safety, develop the theoretical model and carry out empirical test; finally the paper proposes the main findings of research and practical implications. 3. Hypotheses Development Supply chian relationship can be defined as an agreement formed between two or more independent stakeholders within a supply chain to ensure that a specific goal or interests is achieved. The paper reviews the literature related to supply chain relationship (table1), and develops the concept framework shown in Fig1. In the following sections, the paper discusses each of components of supply chain relationship, and develops hypotheses about how supply chain relationship affect food quality. Table 1.Summary of Supply Chian Relationship Dimensions Authors Fynes et al(2004) Min and Mentzer (2004) Lages et al (2005) Su et al(2008) Prajogo and Olhager (2012) Ding et al (2014)
Key dimensions trust, communication, cooperation and adaptation information sharing, long-term relationship, agreed vision&goals, risk&reward sharing, agreed supply chain leadership, process integration, cooperation communication, information sharing, satisfaction with relationship, long-term relationship oriented communication, trust, cooperation, adaptation, atmosphere long-term relationships, information technology and sharing, logistics integration trust, strategic alliance, commitment, and information quality
Communication Trust
Quality cooperation
Adaption Fig. 1. Conceptual framework
Food quality
862
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
3
3.1. Supply chain relationship and quality cooperation In the papper, quality cooperation means that the cooperation and concerted effort of the members within food supply chain to improve the quality of food. First, quality cooperation is based on a good supply chain relationship; the members of food supply chain should establish a long-term, stable partnership. One time game is easy to stimulate opportunism behavior. Second, as the core enterprise of supply chain, some measures of supply chain management should be taken to improve supply chain relationship quality, and then guaranteeing food safety in supply chain. 3.2. Trust Trust can be described as the degree to which a firm believe that the supplier is competent and honest. There exists information asymmetry in food supply chain, which can reduce mutual trust. Mutual distrust between members in supply chain may lead to short term act and poor supply chain relationship. Trust building is the foundation of long-term cooperation in supply chain. Trust can affect the behaviors of partners in food supply chain. Many food safety problems lie in the lack of trust in the supply chain, then carrying out the immoral behavior. The higher the degree of trust, the easier to take quality cooperation behavior by partners in food supply chain. H1 trust will be positively related to quality cooperation. 3.3. Communication Anderson and Narus (1990) defined communication as ‘‘sharing meaningful information between firms timely through formal as well as informal ways.” Communication enable stakeholders in food supply chain to share critical and proprietary information in order to reduce conflict and distrust among them. Timely and efficient communication has a positive effect on quality control in food supply chain. Effective communication enable partners better understangding the common goal of food quality, and dealing with the conflict in food supply chain. H2 communication will be positively related to quality cooperation. 3.4. Adaption Adaptation refers to the extent to which partners make specific investment in the relationship of supply chain (Ford and Håkansson, 2006). Relationship-specific investments could reduce the distrust and opportunistic behavior of memebers in supply chain. Relationship-specific investments can be seen as a commitment in business, and enhance mutual trust in supply chain. The extent of adaption is the basis for quality cooperation, especially when the power of member in supply chain is not equal. It is know that the adaption involve technical support, financial support, and sales support. H3 adaption will be positively related to quality cooperation. 4. Methodology The instrument for examining the previously stated hypotheses was a questionnaire survey. All items in the questionnaire were measured by Likert five-point scales(5 means strongly agree, and 1 means strongly disagree ). The formal survey was conducted by students based on the guidance of the teacher. Most of questionnaires were collected from Shandong province in china. Finally 129 questionnaires were usable. 5. Analysis and findings In the study, the structural equation model is used to verify the theoretical model, taking LISREL as software tool. Before estimating the structural model, the measurement model which including convergent validity and discriminant validity assessment should be constructed. Therefore the confirmatory factor analysis (CFA) approach
4
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
863
is taken for estimating the convergent validity and discriminant validity, and then the paper will verify the theoretical model through path analysis method. 5.1. Measurement model The validity of the fitness and the scales of the measurement model were estimated through the method of confirmatory factor analysis (CFA) on 4 latent variables (communication, trust, adaption, quality cooperation). The goodness of fit index of the estimated model is shown in table2 below: Table 2. Fit Statistics for Structural Model
Fit statistics
3.080
RMSEA
CFI
NFI
GFI
AGFI
0.0
1.0000
0.8413
0.9574
0.9409
Validity analysis generally includes construct validity and content validity. All items used in the questionnaire are come from the existing literature, therefore they have been verified by related researchs, and have good content validity. The construction validity is mainly used to theoretical hypothesis and the test of the theoretical hypothesis. Construct validity can be divided into convergent validity and discriminant validity. Convergent validity is such validity when multiple indicators of the same structure are measured to be aggregated or connected to each other. Discriminant validity is also called the divergent validity, which is contrary to the aggregation validity, means there is no correlation. As shown in table3, all standardized loadings are statistically significant (P<0.1), therefore, the convergent validity was demonstrated. Table3. Confirmatory factor analysis Construct Trust T1 T2 T3 T4 T5 T6 Communication C1 C2 C3 C4 Adaption A1 A2 A3 Quality cooperation Q1 Q2 Q3
Standardized loading
t value
0.6170 0.3126 0.2695 0.3216 0.4963 0.4492
6.2299 3.0483 2.6146 3.1403 4.9694 4.4676
0.2416 0.2534 0.2497 0.4429
2.3589 2.4588 2.4284 3.7151
0.3398 0.2374 0.4136
3.0702 2.3526 3.4545
0.2819 0.3210 0.3680
1.8700 1.9482 2.0604
5.2. structural model As seen from the empirical results (table 4), hypothesess H1 and H2 are supported, but H3 isn’t supported. The adaption has no significant contribution to the improvement of quality cooperation in food supply chain. The study suggests that the reason for the above results may be due to the low sustainability of the trade between the leading enterprises and the suppliers. Rokkan et al. (2003) suggested that the effect of specific investment may vary with the sustainability of relationship. The specific investment has no effect on reducing opportunism behavior if the sustainability of relation is low.The validated model is shown in Fig 2.
Gang Liu / Procedia Computer Science 131 (2018) 860–865 Gang Liu/ Procedia Computer Science00 (2018) 000–000
864
5
Table4. Path analysis of structural model Hypotheses H1 H2 H3
Path communication-quality cooperation trust- quality cooperation adaption- quality cooperation
Communication Trust Adaption
Path Standardized loading 0.2436 0.6883 -0.0305
result Supported Supported Unsupported
0.2436 0.6883
Quality cooperation
Food quality
-0.0305 Fig. 2. Validated model and path coefficients
6. Disussion and implications The relationship of supply chain has an important impact on the quality of food. The paper identifies two key factors for improving the relationship of food supply chain which are trust and communication. The main conclusions of the study are as follows: Firstly, mutual trust between the members of supply chain will directly affect the supply chain cooperation. Trust is a prerequisite for the commitment of members within supply chain to ensure the quality of food. To estabish mutual trust, the firm should view the suppliers as the partners, but not regard them as competitors. If the firm only consider their own interests, it will be difficult to establish long-term partnerships with suppliers, and then more difficult to realize mutual trust. So the benefit of suppliers should be taken into account in the decision-making process. Meanwhile, honour an agreement is the most important way for firms to be trusted by partners. Secondly, good communication mechanism should be established among the members of food supply chain. Communication is the process of transmitting information and influencing each other between individuals or groups. Communication contributes to the stability and development of relationships among partners. It is very necessary for firms in food supply chain to establish a perfect communication mechanism for overcoming the problem of inconsistency of interests and goals. The stakeholders of food supply chain should agree on the importance of food safety goals. Establishing the system of information sharing is the useful way to communication, including shared content, shared channel (regular meetings or online channel), et al. At the same time, the conflict resolution mechanism should be set up, which is designed for conciliating conflict and risk. Another effective way for strengthening the communication is collaborative decision-making, some key elements such as income distribution, risk sharing, and food quality standards are agreed among members in food supply chain before production, so as to ensure that the whole supply chain works hard for the goal of food safety. Acknowledgements This work was partially supported by the key base of the humanities and social sciences—the open fund project of the rural modernization research center in Tianjin, also supported by the innovation and entrepreneurship training program for college students in Tianjin(Project No: 201510061029), and supported by the investigation and research project of Tianjin Rural Work Committee(TJNWY2017001-02), china. References 1. Cai J, Liu X, Xiao Z, Liu J. Improving supply chain performance management: a systematic approach to analyzing iterative KPI accomplishment. Decision Support Systems 2009;46:512-521. 2. Beth S, Burt DN, Copacino W, Gopal C, Lee HL, Lynch RP, Morris S. Supply chain challenges—Building relationships. Harvard Bus. Rev2003;.81: 64–73.
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