Evaluating Partnerships in Sustainability-Oriented Food Supply Chain: A Five-Stage Performance Measurement Model

Abstract

This study aims to investigate how overall food supply chain performance (FSCP) often depends on the performance of partners in a sustainable and energy-efficient supply chain. Initially, the study classifies the FSCP and further examines the partner relationships in sustainability-oriented food supply chain (FSC). To do so, the study proposes and formally tests a five-stage performance measurement model. The present research mainly focuses on the Indian food industry. Results highlight significant direct and indirect positive performance relationships between the different FSC stages. The structural equation modeling analysis highlights that producer’s performance positively impacts supplier’s performance, processor’s performance, and distributor’s performance. Moreover, supplier’s performance positively impacts processor’s performance, distributor’s performance, and retailer’s performance, and also processor’s performance positively impacts both distributor’s performance and retailer’s performance. Lastly, distributor’s performance positively impacts retailer’s performance. The study suggests that regular performance improvement at each FSC stage would improve the performance of the next stage players. Most importantly, the direct impact of each partner’s performance is comparatively high on its immediate next partner’s performance. Furthermore, this study will assist practitioners to understand various FSCP measurement issues and make significant improvements in their sustainable and energy-efficient supply chain practices.