Product quality information in supply chains: a performance-linked conceptual framework applied to the Australian red meat industry

Abstract

Purpose This paper aims to address the association between the quality and quantity of information in supply chains and the costs and benefits of generating, using and sharing it. Design/methodology/approach The authors’ conceptual framework draws on multiple disciplines and theories of the value and use of product information. Controllable aspects of information, its quality and quantity, are the focus of the study as drivers of firm and chain performance. Structural equation models of constructs at two stages of the Australian red meat supply chain are employed, using data from a survey of 81 sheep and cattle breeders and commercial producers. Findings Information quality influences performance more for some product attributes than others and is more influential than is information quantity. Information sharing for many attributes generates benefits only at high cost. Investment in measurement and transmission technologies is supported for intrinsic and extrinsic measures of quality. Differences in respondents' evaluation of information quality are interpreted as evidence of persistent chain failure. Originality/value To the authors' knowledge, this is the first attempt at quantifying and comparing the benefits and costs of information sharing across multiple stages of a supply chain and the first to assess quantitatively the role played by information quality and quantity in generating costs and benefits.

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