Agricultural Supply Chain: Integration and Human Resource Practices

TOPIC 12 - STAGE 4- MESO Relationships established among suppliers and customers are getting closer and permanent over time. They are based on achieving mutual goals, and then they are willing to generate and keep a long-term... [ view full abstract ]

TOPIC 12 - STAGE 4- MESO
Relationships established among suppliers and customers are getting closer and permanent over time. They are based on achieving mutual goals, and then they are willing to generate and keep a long-term vision. Under these conditions, relationships can be considered as supply chain integration, one of the major potential tools in order to create competitive advantages.
Although the expected benefits of supply chain integration may be positive, studies analyzing this effect shed contradictory results. Besides, this relationship may be affected by different factors. This can lead to inconsistent results and, eventually, to an inappropriate interpretation of them.
Among the factors that may affect the relationship between supply chain integration and performance, strategic capabilities have an important relevance. On the one hand, they are the base upon which firms build their competitive advantage, for what they are an essential part of the decision-making process. On the other hand, strategic capabilities may be based on shared resources between partners of the integration relationship. Therefore, strategic capabilities may help to foster or diminish the effect that supply chain integration has over performance.
Regarding agriculture in Almería, the particular configuration of its market of origin makes relationships through agricultural supply chain be substantially different. Thus, associated producers can be considered agents that have been externally integrated because they arose to concentrate and control the production. For their part, independent farmers do not work in organized way; they act in their own interest. Thus, independent farmers are the main suppliers of auctions. Cooperatives are concerned to have a tight relationship with their associated producers, meanwhile auctions do the same regarding independent farmers.
Among others, human resources have a great relevance in this kind of firms. This is because workers are not only a key part, but also their proper manage may lead firms to get a sustainable competitive advantage. For that reason, when firms within agriculture in Almería carry out specific human resource practices, they are positively emphasize the effect of supply chain integration over performance.

The authors acknowledge the financial support from the project P11-SEJ-7085 awarded by the Council of Economy, Innovation and Science of the Junta de Andalucía, Spain.