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The impact of food supply chain traceability on sustainability performance

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Abstract

Increasing quality and risk issues have made food supply chain traceability a worldwide societal concern. This paper aims to examine how exactly traceability practices improve firm sustainability performance. Through structural equation modeling approach, based on a survey of 450 Chinese firms, this paper explores the impact of traceability practices on a firm’s sustainability performance while examining the mediating role of dynamic capabilities as well as the moderating effect exerted by environmental dynamism. The results show that: (1) Input traceability practice, process traceability practice, and output traceability practice have a significant positive impact on firm’s sustainability performance; (2) Dynamic capabilities play a partial mediation role in the relationship between the aforementioned three traceability practices and sustainability performance; (3) Environmental dynamism has a moderating effect on the relationship between dynamic capabilities and sustainability performance. As environmental dynamism increased, the dynamic capabilities have a stronger positive impact on firm sustainability performance.

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Notes

  1. The factor loading λ of the interaction term is set to sqrt(α), and the residual error \({\sigma }_{\varepsilon }^{2}\) of the interaction term is set to 1× (1-α). Where α=(α1×α2+γ2)/(1+γ2), α1 is the Cronbach’s α coefficient of the pre-variable, α2 is the Cronbach’s α coefficient of the moderated variable, and γ is the correlation coefficient between the pre-variable and the moderated variable.

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Authors and Affiliations

  1. Antai College of Economics & Management, Shanghai Jiao Tong University, 1954 Huashan Road, Xuhui District, 200030, Shanghai, China

    Xiongyong Zhou

  2. School of Business, Portland State University, Portland, 97201, USA

    Madeleine Pullman

  3. School of Management, Xiamen University, Siming District, No.422, Siming South Road, 361005, Xiamen, Fujian, China

    Zhiduan Xu

Authors
  1. Xiongyong Zhou
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  2. Madeleine Pullman
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  3. Zhiduan Xu
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Contributions

All authors contributed to the study conception and design. Material preparation, data collection and analysis were performed by Xiongyong Zhou, Madeleine Pullman and Zhiduan Xu. The first draft of the manuscript was written by Xiongyong Zhou, Reviewing, revision and editing were conducted by Madeleine Pullman and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Zhiduan Xu.

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Appendices

Appendix 1

1.1 Questionnaire for food supply chain traceability

1.1.1 Part one basic information

The following information requires details of the company and the respondent. Please indicate your response in the box provided.

Your company’s name:

_________________________________________

Your company’s location :

Shandong ( )

Shanghai ( )

Ningxia ( )

Xiamen ( )

Q1. How many years has your company been established so far?

Less than 3.1

1

3~10

2

10~50

3

More than 50.1

4

Q2. How many employees does your company have so far?

Less than 201

1

201-500

2

501-1000

3

More than 1001

4

Q3. What is the ownership of your company?

State-owner

1

Private

2

Foreign-invested

3

Q4. What is the industry type of your company?

Manufacturing

1

Service

2

Others, please specify

3

Q5. What is your position in this company?

General manager, Vice president

1

Director, Senior manager

2

Department managers, First-line manager

3

IT personnel

4

Others, please specify

5

Q6. What is your main job in this company?

Strategy, planning

1

Sales, market

2

Procurement, logistics

3

R&D, technology

4

Finance

5

Human resources

6

Information management

7

Manufacturing

8

Others, please specify

9

1.1.2 Part two main content

The following information requires details of the company's practice. Please indicate your response in the box provided according to the actual situation you perceive and the degree of conformity with each question.

Traceability practice

Please choose specific score;

Strongly disagree→Strongly agree

1

2

3

4

5

Input traceability

We share the inventory level and production plan of food raw material.

     

We share grades, quality, place of origin and property of food raw material.

     

We share logistic information of food raw material.

     

We share information related to changes in the technology of food products.

     

We share information on demand and customer preference shifts, especially shifts on food product safety and quality.

     

We share information related to market demand trends and forecasts.

     

Process traceability

We have a mechanism and tools to provide timely information.

     

Our traceability documents are up to date.

     

We carry out internal and external audits.

     

We keep written of past traceability reviews and audits.

     

Output traceability

We share customer feedback on major food product innovations.

     

We share customer feedback on major improvements needed in food product quality and safety.

     

We share grades, quality, place of origin, and property of food products.

     

We share inventory levels and logistic information about food products.

     

We share plans regarding our key customers’ market segments and important customers.

     

Dynamic capabilities (Sensing)

Please choose specific score;

Strongly disagree→Strongly agree

1

2

3

4

5

We frequently scan the environment to identify new business opportunities.

     

We periodically review the likely effect of changes in our business environment on customers.

     

We often review our product development efforts to ensure they are in line with what the customers want.

     

We devote a lot of time implementing ideas for new products and improving our existing products.

     

Environmental dynamism

Please choose specific score;

Strongly disagree→Strongly agree

1

2

3

4

5

In our kind of business, customer’s product preferences change quite a bit over time.

     

Our customers tend to look for new products all the time.

     

New customers tend to have product related needs that are different from those of our existing customers.

     

The technology in our industry is changing rapidly.

     

A large number of new product ideas have been made possible through

technological breakthroughs in our industry.

     

Firm sustainability performance

Please choose specific score;

Strongly disagree→Strongly agree

1

2

3

4

5

Economic performance

We make an improvement in market share.

     

We make an improvement in profit.

     

We reduce the environmental damage caused by the accident.

     

We achieve an improvement in return on assets.

     

We improve the return on sales.

     

We improve the return on investment.

     

Environmental performance

We reduce air emission/wastewater/solid waste.

     

We decrease in consumption of hazardous/harmful/toxic materials.

     

We reduce energy consumption.

     

We decrease in frequency for environmental accidents.

     

We improve compliance with environmental standards.

     

We improve the ability to reuse/recycle.

     

We improve a firm’s environmental situation.

     

Social performance

We reduce the impacts and risks to the general public.

     

We improve in occupational health and safety of employees.

     

We provide more positions in the community.

     

We improve the product image.

     

We improve the firm’s image in the eyes of customers.

     

We improve the firm’s social reputation.

     

If you have any good suggestions for our work, please feel free to submit them to us.

Thank you very much for your cooperation.

Appendix 2

2.1 Other testing results

Table 7 The rotated factor loading matrix
Full size table
Table 8 Discriminant validity between variables
Full size table

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Zhou, X., Pullman, M. & Xu, Z. The impact of food supply chain traceability on sustainability performance. Oper Manag Res 15, 93–115 (2022). https://doi.org/10.1007/s12063-021-00189-w

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