The Impact of Internationalisation on the Swedish Food Industry

Abstract

The European integration process has changed the competitive landscape in many industries. The questions raised in this paper concern the reactions of national firms that are subjected to this process of internationalisation of competition.

This study highlights the vertical inter-dependence within a system of production and distribution. In internationalisation theory, most studies have focused on how firms become international or global players, where entrance into new markets is seen as a result of strategic decisions.

To illustrate this process, three industries in food production, that is the baking, the brewing and the confectionery industries, were chosen.

The results indicate that a supra-industrial strategic recipe exists, with a core content of specialised volume production. The discussion on company strategies focussed on the retail sector. The findings might be interpreted in the light of Galbraith's theory of countervailing power.     

Supplier-Retailer Relationships in the UK Fresh Produce Supply Chain

Abstract

Over the past decade, the UK fresh produce (fruit, vegetables, and salads) supply chain has undergone numerous changes, with retailers becoming increasingly powerful. The overall trend is towards the industry being dominated by a few large corporations operating on a national level, with some corporations even operating on a European or global scale. This process, which could significantly impact on the supplierretailer relationships, is examined in this study using indepth interviews with participants from the fresh produce supply chain. Amongst the findings are the following: Supply chain advancements, including backhauling, and factory gate pricing are causing some controversy because suppliers feel that these initiatives do not benefit their relationships with retailers. There is room for supplierretailer relationship improvement in areas such as trust, co-operation, and collaboration. Retailers, who have significant supply chain power, are starting to acknowledge the importance of suppliers in the gaining of gaining retail market share. Lastly, the intense process of supplychain rationalisation that we have seen in recent years appears to be leveling out in the UK fresh produce supply, such that there is less anticipated further rationalisation. The study outlines a series of recommendations for how suppliers (retailers) can improve their relationships with retailers (suppliers).     

Supermarkets and Consumers in Africa

Abstract

Supermarkets in urban Kenya have risen from a tiny niche a half decade ago to a fifth of food retail, spreading well beyond the richer consumers to derive more than a third of their sales and half of their customers from low income and poor consumers. This paper explores the patterns and determinants of purchases of the overall food category versus fresh fruits and vegetables, over Nairobi consumer income strata, for purchases from supermarkets versus traditional retailers. Implications are drawn for development programs to help farmers be strategically positioned for change in the food markets facing them.     

Shopping Behavior and Evaluation of Store Features: Perspectives from a Food Market in the Arabian Peninsula

ABSTRACT

Globally, the food retailing industry is seen as most dynamic and rapidly changing. In this paper we investigate the shopping behavior of shoppers in Saudi Arabia, the largest retail market in Arabian Peninsula. Using empirical research, this paper examines factors influencing shopping decisions and the attitude toward shopping of shoppers in Saudi Arabia. Comparisons based on demographic factors are also discussed. The article discusses the findings and makes recommendations to retail store management. Future research directions are also suggested.     

Consumer Choice of Retail Food Store Formats in Qingdao,China

Abstract

This study analyzes Chinese consumer behavior across different retail food store formats and how household demographics affect shopping behavior. A multivariate probit model with four categories of retail food store formats (wet markets, small grocery stores, supermarkets, and hypermarkets) in Quindao, China is estimated. The results indicate that the new hypermarkets are substitutes for supermarkets, but they do not compete extensively with wet markets and small grocery stores. Furthur development of various catagories of food shopping store formats is linked to store-owner characteristics, potential interrelations among existing retail formats, as well as consumers' demographics and shipping habits.     

Information Sharing in Food Supply Chains

Information sharing among firms within many industries accounts for a substantial part of the gains from information technology adoption in these industries. In this paper we examine the determinants of information sharing between retailers and their suppliers, in the food industry supply chain. Using a data set known as the Super Market Panel Data gathered by the University of Minnesota's Food Industry Center, the behavior of food retailers is examined in their adoption of information sharing technologies that facilitate vertical exchange of information with suppliers. Evidence supports the hypothesis that retail firms with larger number of suppliers are more inclined to share, rather than to withhold, information. Prior theoretical work suggests that this happens because retail firms with large number of suppliers are less concerned about opportunistic behavior of suppliers from the misuse of retailer information by the supplier. We also find that self‐distribution chains are more inclined to share information. Finally, the structure of the market plays an interesting role in the type of information sharing platforms that the retailers adopt. Dans de nombreux secteurs, l'échange d'information entre entreprises représente une part substantielle des gains issus de l'adoption des technologies de l'information. Dans le présent article, nous avons examiné les déterminants de l'échange d'information entre les détaillants de la chaîne d'approvisionnement alimentaire et leurs fournisseurs. À l'aide de l'ensemble de données Supermarket Panel Data, établi par le Food Industry Center de l'University of Minnesota, nous avons examiné le comportement des détaillants en alimentation quant à l'adoption des technologies d'échange d'information facilitant l'échange d'information vertical avec les fournisseurs. Les observations appuient l'hypothèse selon laquelle les détaillants qui comptent de nombreux fournisseurs sont plus disposés àéchanger qu’à retenir l'information. D'après des études théoriques antérieures, cette situation serait attribuable au fait que les détaillants qui comptent de nombreux fournisseurs sont moins préoccupés par le comportement opportuniste de fournisseurs qui utiliseraient de façon malveillante de l'information sur le détaillant. Nous avons également observé que les chaînes d'autodistribution étaient plus enclines àéchanger de l'information. Finalement, la structure du marché joue un rôle intéressant dans le type de plateformes d'échange d'information qu’adoptent les détaillants.     

A ranking of shopping centres using multiple branch numbers

Summary

The paper presents a new ranking of shopping centres in Great Britain based on the number of branches of durable multiple retailers found in each centre. The results are used to derive a functional retail hierarchy. There is found to be a clear distinction between Regional Centres containing stores and smaller District centres. A comparison with the 1971 Census of Distribution shows patterns of growth and decline. In urban areas with weak or split centres, the main centre was found to have risen in rank while the surrounding minor centres had lost rank.     

EU Requirements for Food Safety and Quality Systems in Turkey: Determinants of Perceptions

Abstract

The European Union (EU) is one of Turkey’s most important trade partners. A large number of Turkish agri-food processors, however, are still unable to produce in accordance with the EU specifications. Furthermore, it is uncertain how Turkish food producers perceive the EU regulations. Based on a questionnaire survey of 99 Turkish agri-food enterprises from various industry subsectors and a conceptual framework including knowledge, personal and economic perspectives, this article assesses perceptions of the EU requirements regarding food safety and quality systems in the Turkish agri-food industry. The results indicate that those perceptions vary widely among the processors depending on education level, firm size, and legal form of ownership. Moreover, subjective information related to the perceptions regarding advantages, requirements, and costs of food safety and quality practices significantly contributes to the perceptions examined. The findings have manifold implications which should be taken into account when adapting Turkish legislation to reflect EU regulations.     

Factors Influencing Retailers' Decision to Sell PDO/PGI Fresh Meat

Abstract

The objective of this paper is to analyze retailers' attitudes toward region of origin labeling in fresh meat and the factors influencing retailers' decision to sell these quality labeled meats. Data come from a survey conducted with retailers in Spain (Aragon) in 2002. Firstly, retailers' attitudes toward region-of-origin labeled meat are investigated. Secondly, factors affecting the probability to sell region-of-origin labeled for two meat products (beef and lamb) and the level of sales are determined. To do this, a probit model has been specified to analyze the probability to sell region-of-origin labeled beef/lamb and an ordered probit, to study the level of sales for beef/lamb.     

Food scares, market power and price transmission: the UK BSE crisis

This paper is concerned with the impact of food scares, principallythe BSE crisis in the UK, and focuses on price transmissionin vertically related markets. We show that if market powerhas an effect on the farm–retail margin, this determinesthe specification of the cointegrating relationship and thusprovides a test of market power. The results for the UK beefchain suggest that we cannot reject the importance of marketpower. The impact of the BSE crisis on farm prices is foundto be more than double that on retail prices, thus corroboratingpublic concerns regarding a differential impact of food scareson retailers and producers.     

The Patterns and Implications of Increasing Concentration in European Food Retailing

Across the European Union, concentration in food retailing at the national level has been increasing for some time, but increasingly multinational retailers have been extending their international reach. In the process, aggregate concentration has risen sharply over the last few years. In addition, the presence of buyer groups, representing different retail interests, adds to the characterisation of procurement markets as highly concentrated. Also at the aggregate level, cross‐border buyer alliances amongst large retailers have emerged. We consider the implications of these features for the changing patterns of retail competition and the impact on food producers, supplier competition and economic welfare.     

A Pre-Purchase Model of Consumer Choice for Biological Foodstuff

Abstract

The present study examines the way consumers form their purchase intentions for organic products using the concepts of perceived quality and value. A model of relationships among quality cues, evaluative judgments, and willingness to buy for organic foodstuff is then developed and explored empirically with respect to biological olive oil. The data provide support for the critical importance of perceived value on consumers' purchase intention. The discussion centres on theoretical and especially managerial implications for organically and naturally produced food.     

Perpetuating poverty through exclusion from social programmes: lessons from Andhra Pradesh

ABSTRACT

What factors underlie the exclusion of some poor households from welfare programmes? This article analyses the question through a comparative examination of households’ demographic characteristics, social capital and communities’ spatial (dis)advantage as determinants of enrolment in three social programmes in Andhra Pradesh, India. The main findings indicate that traditionally marginalised demographic groups do not experience programme exclusion significantly more than other groups, but that households’ social-network capital and communities’ spatial advantage increase households’ programme inclusion. The importance of social capital for programme inclusion wanes, however, in spatially more advantaged communities.     

Food Waste Avoidance Actions in Food Retailing: The Case of Denmark

Food waste occurs throughout the entire food supply chain, from production to consumption of food in households. Retailers are in a unique position to contribute to food waste avoidance, not only by minimizing the amount of waste in their distribution channels but also by influencing consumer attitudes and behaviors. This explorative study aims to identify which food waste avoidance actions are conducted by retailers in Denmark, to which extent, and how they vary across food categories and supermarket chain. Based on an analysis of secondary and empirical data collected via observations at retail stores, the authors identify 22 food waste avoidance actions in Danish retail. The results provide new insights into food waste avoidance in retail. Based on the findings, suggestions for further research directions are developed that should serve to identify the most efficient customer targeted actions in the in-store setting and marketing of suboptimal foods.     

Assessing the Contribution of Attitudinal Variables in International Models of Food Consumption

Abstract

This study compares the predictive ability of attitudinal variables with that of demographic variables in an international context. Using hierarchical regression analysis, the contribution of attitudinal variables to five models of food purchase behavior in urban China is evaluated. The results of the study indicate that, in some circumstances, multinational firms might opt to omit attitudinal measures in international consumer studies. Analysis of variance techniques are then used to examine the relationship between key demographic variables and food purchase behaviors.     

Adoption of Food Safety and Quality Controls: Do Firm Characteristics Matter? Evidence from the Canadian Food Processing Sector

This study explores the association between the adoption of food safety and quality assurance practices in the Canadian food processing sector and firm characteristics. A conceptual model is developed recognizing that the relative importance of a firm's incentives to adopt enhanced food safety and quality assurance practices is influenced by the firm's characteristics and activities. Binomial logit models are estimated to explore the association between adoption of various combinations of food safety and quality assurance practices including hazard analysis and critical control point (HACCP). The findings show that the adoption of food safety and quality practices varies widely between individual firms according to, among others, firm size, country of ownership and control, level of innovativeness, level of export orientation, forms of food safety inspection, and the subsector in which the firm operates. Incentives of being able to access foreign markets play an important role in influencing HACCP adoption. La présente étude analyse le lien entre l'adoption de pratiques visant la salubrité et l'assurance de la qualité des aliments au sein de l'industrie canadienne de la transformation et les caractéristiques des entreprises. Nous avons élaboré un modèle conceptuel reconnaissant que l'importance relative des incitatifs qui motivent une entreprise à adopter des pratiques améliorées en matière de salubrité et d'assurance de la qualité des aliments est influencée par les caractéristiques et les activités de l'entreprise. Nous avons estimé des modèles logit binomiaux pour examiner le lien entre l'adoption de diverses combinaisons de pratiques visant la salubrité et l'assurance de la qualité des aliments, y compris les systèmes HACCP (analyse des risques et maîtrise des points critiques). Les résultats ont montré que l'adoption de ces pratiques variait considérablement d'une entreprise à l'autre en fonction, entre autres, de la taille de l'entreprise, du pays de propriété et de contrôle, du degré d'innovation, du degré de vocation exportatrice, des programmes d'inspection de la salubrité des aliments et du sous‐secteur dans lequel une entreprise évolue. La perspective de pénétrer les marchés étrangers joue un rôle important dans l'adoption de systèmes HACCP.     

Sectoral gender wage gap in Vietnam

Abstract

Price forecasting systems are of considerable importance to food security management by governments’ and non‐governmental organizations. Sparse data availability in low‐income economies, however, generally necessitates reliance on reduced form forecasting methods. Relatively recent innovations in heteroscedasticity‐consistent time series techniques offer price forecasting tools that are feasible given available data and analysis technologies in low‐income economies. Moreover, extended GARCH models exhibit superior out‐of‐sample forecast accuracy using monthly food price data from Madagascar. These techniques also permit cost reduction in food security operations by more precise estimation of the risk of hitting a critical price level.     

Economic Liberalization and Productivity Growth: Further Evidence From Bangladesh

The impact of economic liberalization reforms on the productive performances of manufacturing firms remains a contentious issue in the literature. This paper attempts to contribute to the debate by empirically estimating productivity growth of Bangladesh food manufacturing using firm level data before and after reform. Empirical results show that the share of output growth was accounted for by input growth in most sectors of this industry. In some sectors, the estimated rate of total factor productivity (TFP) growth is negligible or even negative. Decomposition of the TFP growth shows that technological progress plays a significant role in TFP growth across firms within the sub-sectors of this industry. Empirical results also show that the relative contribution of capacity realization to TFP growth is not substantial in inhibiting the industry's high and sustained growth. These dismal performances indicate that the industries responded a little to the implementation of economic reforms.     

Developer behaviour and development control

Summary

Studies by the North Carolina group established the decision modelling approach to study urban growth. These studies established the central role played by developers in the process, and the rational and adaptive behaviour of developer decision‐making. Events have since changed the developer's decision environment: the growing complexity and uncertainty of the development control process and the changing structure of the development industry towards larger and more integrated firms.

This author argues that if developers are truly rational and adaptive there should be some observable and stable relationship between their structure and operation and their performance in the development control process. This paper reports the findings of a case study which examines such relationships in the subdivision approval process in Scarborough, Ontario. Thirteen developer/development variables were tested. The major finding is that firm size was the most important variable. Large firms did not do well in negotiation but they took much less time in implementing the conditions of approval and in starting the building work. It is further argued that such behaviour is compatible with the financial, production and marketing characteristics of development firms.     

Traditional Food Products: The Effect of Consumers’ Characteristics,Product Knowledge,and Perceived Value on Actual Purchase

The study demonstrates the importance of customer orientation in markets dominated by small food and drink manufacturers. The study evaluates the effect of consumers’ personal characteristics and perceptions on purchase and provides better understanding of their role in business development in specialty food markets. The United Kingdom’s Mediterranean food market was chosen as a context, focusing specifically on Greek feta. Two hundred seventy-three UK specialty food shoppers were surveyed online to determine what aspects of consumers’ cognition and what personal characteristics would affect purchase decisions. The findings reveal, through 3 models (R² = .26/.20/.19), that product knowledge (p < .01), country of origin (p < .10), perceived transactional value (p < .10), consumers’ life stage (p < .05), and available income (p < .01) are 5 critical factors affecting decision making. The managerial implications for small and medium sized enterprises (SMEs) lie in the need to create and deliver value to consumers by informing production decisions on consumers’ insight rather than on customers’ (wholesalers, retailers) specifications.