Agri-food supply chain concentration and financial growth: configuration and congruence approaches

Abstract

Purpose The importance of the agri-food supply chain in both food production and distribution has made the issue of its development a critical concern. Based on configuration theory and congruence theory, this research investigates the complex impact of supply chain concentration on financial growth in agri-food supply chains. Design/methodology/approach The cluster analysis and response surface methodology are employed to analyse the data collected from 207 Chinese agri-food companies from 2010 to 2022. Findings The results indicate that different combination patterns of supply chain concentration can lead to different levels of financial growth. We discover that congruent supplier and customer concentration is beneficial for companies’ financial growth. This impact is more pronounced when the company is in the agricultural production stage of agri-food supply chains. Post-hoc analysis indicates that there exists an inverted U-shaped relationship between the overall levels of supply chain concentration and financial growth. Practical implications Our research uncovers the complex interplay between supply chain base and financial outcomes, thereby revealing significant ramifications for agri-food supply chain managers to optimise their strategies for exceptional financial growth. Originality/value This study proposes a combined approach of cluster analysis and response surface analysis for analysing configuration issues in supply chain management.

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