The value of supply chain integration in the Latin American agri-food industry: trust, commitment and performance outcomes

Abstract

Purpose: This paper aims to explore the antecedents and performance outcomes of supply chain integration in the agri-food industry in Latin America, a context that the literature on supply chain management has not extensively addressed. The quinoa supply chain, an industry that has encountered a boost in market demand in the past year, is selected as the unit of analysis. Supply chain integration dynamics are analyzed to provide recommendations about integration strategies and benefits in the agricultural sector. Design/methodology/approach: A conceptual model was designed in this study, which includes the drivers (i.e. trust and commitment) and outcomes (i.e. operational and economic performance) of supply chain integration. The relationships were verified through a unique survey, the data of which were collected from 79 respondents operating at different levels of the Peruvian quinoa supply chain (i.e. suppliers, producers and customers). The proposed hypotheses were tested through the partial least squares (PLS) regression. Findings: The results underscore the relevance of trust and commitment as enablers of supply chain integration initiatives in the agri-food industry. These factors are particularly essential for involving the farmers who are the most upstream actors in the supply chain and characterized by unstructured organizations. A high level of integration in these types of supply chain enhances the capacity to improve operational performance, which in turns positively affects the main economic indicators. Originality/value: This study contributes to the discussion of supply chain integration in the agri-food industry, which remains unexplored thus far. It relies on a multitier collection of responses, which is extended to all the levels of the quinoa supply chain, thereby providing the study with a unique depth of analysis. Furthermore, this work contributes to the ongoing discourse on the performance impact of supply chain integration, which several SCM scholars have recently questioned.