Relationships between quality of information sharing and supply chain food quality in the Australian beef processing industry

Abstract

Purpose – The purpose of this paper is to analyze supply chain practices, and supply chain food quality performance indicator in the Australian beef processing industry. Design/methodology/approach – A conceptual model was developed to test how supply chain practices: strategic alliance, customer focus, information sharing, information quality, Lean system and antecedent cooperative behavior: trust and commitment impact on food quality. A survey questionnaire to 600 Australian beef processors was conducted to collect the empirical data for testing of the formulated hypotheses. The stepwise multiple regression analysis was performed to test the hypothesized relationships. Findings – Strategic alliance, information quality and trust and commitment are significantly related to food quality. In particular, the standardized coefficient shows that information quality has a significant positive relationship with food quality. Research limitations/implications – As Lean principles have been widely adopted in the red meat industry, strategic alliance becomes even critical for maintaining cost and operation effectiveness in the beef supply chain. A various approaches in terms of innovative technologies can improve information quality and promote information sharing in the beef supply chain. To build trust and commitment among supply chain partners requires perception of mutual long-term goals. Practical implications – Australian Meat Manufacturers face greater regulatory challenges and restraints (product labeling, food safety and carbon tax) over the next five years. Therefore, to tackle the challenges, the findings of this research have significant practical implications. Originality/value – This study intends to fill the research gap and explore how advanced supply chain systems have a potential to provide contributions to Australian beef processing industry performance. Vertical integration between livestock producers, meat processors, wholesalers and retailers provides the opportunities for greater economies of scale in production and distribution.