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A Study Of The Control And Governance In The Value Chain Of Supermarkets' Agriculture Circulation

Posted on:2018-06-10Degree:DoctorType:Dissertation
Country:ChinaCandidate:X M GongFull Text:PDF
GTID:1319330518483840Subject:Business management
Abstract/Summary:PDF Full Text Request
We are a huge agricultural country and the development of agriculture has a great influence on the efficiency and quality of the whole national economy. The problems of agriculture, the countryside and farmers are affairs that have influenced our national interest and people's livelihood all the time and also been the foundation of long-lasting stability of our country. Our government have been putting much attention to it. As an important composition of agricultural produce, vegetables are also concerned by all levels of people.With the development of our economy, citizens' lives have changed a lot and that supermarkets sell vegetables appears. On one hand, cities become bigger and bigger and vegetables land is shrinking heavily so that vegetable production start to transfer to suburbs and the production become more dispersed. Meanwhile,citizens' demand to vegetables continues growing. Vegetables are one of necessities of life so it is highly required to buy them conveniently. Therefore, more vegetable-selling places are needed to meet the requirements of customers in different areas. However, it costs a great deal to increase more places so the traditional mode that suppliers sell directly their vegetables to customers is no longer feasible. All of those make it possible for supermarkets to appear. On the other hand, people living in cities have a fast life.According to statistics, 87.4% of worker choose to buy vegetables after they are off duty so traditional fairs which usually open in the morning hardly meet the citizens'demand. Instead, supermarkets can work out well with its long business hours,convenient transport and nicer shopping environment. Under this background,supermarkets that sell vegetables emerge naturally and are being paid more and more attention. Different from traditional organizational form of vegetable distribution, they reduce the circulation and time of vegetable distribution and can offer demand change in time to producers and suppliers in order to realize quality traceability. But there still exist lots of problems in vegetable distribution. Since vegetable transaction is not a one-time but a repetitive activity so it is necessary for us to govern it. At the same time,the value-chain governance of vegetable distribution is an natural result of social division of labor. Only by effective organization and coordination of every link can a win-win result of value chain be achieved.At first,this paper discusses the current situations and theoretical backgrounds and then presents the problems. Firstly, what factors influence the value-chain evolution of supermarkets' vegetable distribution? How can these factors influence the value chain of vegetable distribution? To answer these questions helps us to clearly understand the logic and emphases. Secondly, Howe can supermarkets maintain their own leadership? After all, powerful leadership is the premise of effective value-chain governance. There is little difference in vegetable produce andthere are a large number of producers in which situation it should have been whoever controls the channels controls the leadership. In reality, however, the leadership of some retail enterprises is still challenged, leading to the value-chain breakup of vegetable distribution. Hence, before analyzing the value-chain governance, we should make sure how supermarkets should maintain their leadership. Thirdly, whatdifference of value-chain governance mode of vegetable distribution is there in different types of supermarkets with different background? What kind of governance strategy we should take based on different governance mode?In order to study the questions above, the paper adopts exploratory multi-case study, selecting RT-Mart, Carrefour, Yonghui superstores , Nongfa supermarkets in Xiaoshan district, Hangzhou and Lvqun supermarkets in Lanshan district, Linyi as subjects of study cases. The reason why choose multi-case study is because by analyzing every case, the writer want to dig out the main factors that influence the value-chain evolution of each case and find out the features of every value chain in production, distribution and retail and their relation with each other, and problems.Then look for the common characters, figure out factors which influence the value-chain evolution of vegetable distribution and its evolution pathways, conclude the active strategy of the obtainment and maintenance of the value-chain leadership and find out the classification standards of the value-chain governance of vegetable distribution. Finally, combine those common characters with their specialties,calculate the right difference between retailers and suppliers according to the classification standards of the value-chain governance mode of vegetable distribution and find out what kind of governance mode they should use.The collected data was analyzed with "Transaction Cost Theory" "Resource Dependence Theory" and "Division of Labor". From the value-chain composition's evolution of supermarkets' vegetable distribution and role changes between retailers and suppliers, Chapter 4 generalizes the value-chain evolution's trends and influencing factors of supermarkets vegetable distribution and discusses those factors'pathways to the value-chain evolution, which provides reference to the emphases and key points of value-chain governance. Chapter 6 discusses the EMU Model of the Obtainment of the Value-Chain Leadership in Supermarkets' Vegetable Distribution and determines that the governor of value chain in supermarkets' vegetable distribution is the precondition to achieve effective value-chain governance.According to the factors in Chapter 4 that influence value-chain evolution and factors in Chapter 5 on the obtainment of leadership, Chapter 6 chooses new classification standards of governance mode: the encodability of the transaction,suppliers' ability,the number of suppliers and the cost of retailers changing their suppliers which could be divided into three parts: the encodability of the transaction, the right of retailers and that of its suppliers,right of retailers and suppliers. Finally, through the calculation of right difference, and on the basis of right imbalance, four types of value-chain governance mode in supermarkets vegetable distribution are attained:control mode, dependence mode, relation mode and module mode. It also discusses its features, governance mechanism and advantages and disadvantages of every mode.Main conclusion includes, firstly, the value-chain leadership in supermarkets'vegetable distribution do not form naturally and is not unchangeable so active measures, such as increasing the interdependence between retailers and suppliers,must be taken to obtain and maintain the leadership; secondly, according to the right difference between retailers and suppliers, four different governance modes (control mode , dependence mode, relation mode and module mode) are divided. In the four different governance modes, module and control modes have more efficient distribution, module mode has better information transmission, dependence mode has the most flexible vegetable supply and module mode has the most efficient control on vegetable quality. Besides,as time goes by,relations between retailers and suppliers are becoming diversified and different modes intertwine with each other, among which module mode has become a development trend, increasingly accepted by most supermarkets. There is no good and bad among different governance modes and the one that fits is the best so supermarkets should choose their governance mode in accordance with their practical situation, such as their development phase, scale,financial power, outside environment and so on. Thirdly, the key point of value-chain governance is to achieve a win-win results in every link under the precondition of maintaining leadership and interest. Therefore, the emphases of value-chain governance include the relations maintenance with suppliers, the increase of distribution efficiency and the lower distribution cost, the enhancement qualitycontrol of vegetables,the innovation of vegetable transport techniques and storage techniques, the improvement of information transmission, the value-chain innovation,the consumption experience and so on.Main innovations of this paper are as follows. Firstly, observe supermarket leadership from the perspective of increasing dependence with each other and also build the EMU model of the supermarket leadership. Secondly, on the basis of the specialty of vegetable produce, choose new standards of value-chain governance mode which include the encodability of transaction, the suppliers ability (including the ability of meeting the demand of products and services, and bargaining power ),the number of suppliers, the cost of retailers changing suppliers, suppliers' tangible resources and intangible resources according to "Resource Dependence Theory" and"Transaction Cost Theory". Thirdly, under the condition of unbalanced value-chain right and through the calculation of right difference between retailers and suppliers,four types of value-chain governance modes in supermarkets' vegetable distribution are obtained which contain control mode, relation mode, dependence mode and module mode and the paper also discusses the feature of each mode, governance mechanism, advantages and disadvantages and the emphases of governance. Fourthly,using the method of game theory to find the difference of strategies and profits of both sailors and suppliers between non-cooperative game and cooperative game. And then,verifying that the profits in the cooperative game for both sides be greater than in the non-cooperative game. Based on these, we calculated how to distribute the profit in the value chain.
Keywords/Search Tags:value chain of supermarket vegetable circulation, the control power in value chain, indexes, governance patterns, the value chain governance
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