Strategies and challenges of internationalisation in BRIC-countries: Empirical results from the German agribusiness

The objective of this paper is to identify the strategies and instruments that agribusiness companies currently use to cope with the globalisation of agricultural markets. This aim is achieved by means of presenting the empirical results of an online and telephone survey that was undertaken between April and August 2010 with the participation of 113 German agribusiness firms. The majority of respondents expect that the importance of the markets in the BRIC countries will increase remarkably in the future. For developing international business activities, comparatively simple strategies such as direct and indirect exports via domestic and international traders are most widely used. This may be the result of challenges the agribusiness companies are facing in the context of handling international markets, especially in BRIC countries. --agribusiness,internationalisation,firm strategy,BRIC

Transparency in Supply Chains: Is Trust a Limiting Factor?

Transparency has gained much relevance in food chains. This paper summarizes the determinants of transparency and points out that transparency in the sense of effective information exchange needs trust as a mediator in order to become a powerful tool in supply chain management. In addition to that this paper analyses the characteristics of trust and highlights the reciprocal and dynamic mechanisms of trust on transparency and vice versa. It is argued that both constructs should be enhanced at the same time in order to realize the benefits of trust and transparency on supply chain management.Transparency, trust, power, control, agribusiness, Agribusiness,

Legitimating Business Activities Using Corporate Social Responsibility: Is there a Need for CSR in Agribusiness?

result, enterprises in the agribusiness sector are increasingly exposed to the public eye (Jansen/ Vellema: 2004). The perception of consumers and other stakeholders - which are according to Freeman “any group or individual who can affect, or is affected by, the achievement of the organization’s objectives” - is of growing criticism and risk-consciousness and manifests itself in changed attitudes towards food production (Jäckel/Spiller: 2006; Haddock: 2005). The use of GMO in agriculture, e.g., is regarded to be morally reprehensible (Becker: 1999). The BSE-crisis and other food scares led to growing consumer uncertainty and resulted in decreased meat consumption and in the increasing percentage of outspoken vegetarians and low-meat consumers (von Alvensleben: 1997; Staack: 2005). Moreover, the influence capacity of stakeholders is growing (Gerlach: 2006). As a result these factors have reduced the legitimacy of traditional (e.g., animal production) as well as new production technologies (e.g. bioenergy) in the agribusiness. In the long term the success of enterprises in the agribusiness can be affected by legitimacy losses. Against this background, legitimacy is regarded as a resource that guarantees the long-term survival of an enterprise (Palazzo/Scherer: 2006). Primarily the market based view in general management literature and the macro-institutional approach in neo sociological-institutionalism are employed to understand business operations embedded in societal structures. In this context legitimacy means the conformation of an organization with social norms, values and expectations (Oliver: 1996).Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization,

Internationalization and Corporate Success - Empirical Evidence from the European Dairy Sector

Increasingly, cooperatives in the agribusiness are being confronted with the globalization of agri-food markets. Cooperatives adapt to this development by internationalizing their activities. This paper presents a method of measuring the degree of internationalization (DoI) and its application to European cooperatives in the dairy sector. Then, the financial performance of these cooperatives is measured by applying balance sheet analysis. The paper ends with a discussion of why German cooperatives are noticeably less internationalized and show weaker financial performance than their European competitors.globalization, dairy industry, cooperatives, degree of internationalization, corporate success, Agribusiness, Livestock Production/Industries,

The Role and Success Factors of Livestock Trading Cooperatives: Lessons from German Pork Production

In recent years the organization of meat supply chains has been among the most animatedly discussed topics in agriculture and the food industry. Many authors hypothesize that contracts and vertical integration are paramount for the future competitiveness of meat production. But most arguments do not take into account the complexity of today's meat supply chains and the pivotal role private and cooperative livestock traders still play in many countries. In this paper we analyze the role and success factors of livestock trading cooperatives in modern meat supply chains. The results show that livestock trading cooperatives are most successful when their service spectrum meets members' needs and offers an added value to farmers. From a theoretical perspective, the results indicate that the idea of searching for "one best way of organizing" food supply chains might be misguided and current writing on this topic might be too deterministic.Cooperatives, Equifinality, Livestock trading, Meat industry, Success factors., Agribusiness, Livestock Production/Industries,

CORPORATE SOCIAL RESPONSIBILITY IN THE AGRIBUSINESS: A RESEARCH FRAMEWORK

In this paper we analyze the relevance of a corporate social responsibility (CSR) strategy for enterprises in the agribusiness. Based on an overview about existing approaches to cope with conflicts in the agribusiness, we define CSR and introduce a conceptual framework that provides insights into the determinants of CSR and its effects. These are in particular, the legitimacy and reputation, and finally, the performance of enterprises in the agribusiness. Being mutually confronted with multiple stakeholder goals and relationships, it could be notably promising for enterprises in the agribusiness to pursue a CSR strategy.Corporate social responsibility, reputation management, stakeholder theory, legitimacy, CSR, Agribusiness,

Quality of Communication and Types of Communicators in German Veterinary Authorities

Recent crises in the agricultural sector, such as the 2011 German dioxin scandal and deaths from EHEC or the last swine fever outbreak in Germany in 2006, have caused immense economic damage. As a result, German veterinary authorities at the district, state, and federal levels have been put in charge as crisis managers and leaders of active preventative organizations. To perform their tasks successfully, they require effective communication skills as well as close cooperation with stakeholders in the agribusiness sector. However, despite clear evidence that identifies these relationships as crucial, there is only very little research that directly addresses communication quality and intensity of public authorities responsible for food safety. The relevant literature so far primarily deals with the technical design and implementation of new information and communication systems. However, it often fails to address the particular needs and communication behaviour of individual users. It is the objective of this study to identify determinants of communication quality and to differentiate between types of communicators in order to shed light on the construct of communication behaviour in veterinary authorities. To do so, the determinants of the quality of communication between public authorities and their external stakeholders were identified based on a causal model. These determinants were used as cluster-building variables in a cluster analysis to determine different types of communicators in veterinary services. The data reveals that the personal aspects of communication are of greater relevance than its content. This knowledge could be helpful to identify measures that could be implemented in order to improve the quality of communication of veterinary authoritie

Agrifood Certification Schemes in an Intercultural Context: Theoretical Reasoning and Empirical Findings

The need for adequate systems to guarantee the quality of food products has become more and more obvious in recent years. As a consequence, not only in Germany but throughout the world, the number of certification schemes has been increasing for nearly a decade. Due to the implementation of these standards in various countries, a considerable number of contingency factors exist that may influence the effectiveness and efficiency of such schemes. These factors include the diverse political, economic and social conditions in the different countries. Numerous studies attribute a decisive role in the successful implementation of management instruments to cultural influences. Cultural conditions may differ considerably from region to region around the world. Against the background of this multiplicity of cultures, this study analyzes the impact of cultural context on the way certification schemes are implemented and work in different parts of the world. Based on theories concerning the influence of culture on the implementation of certification schemes, an empirical study was devised and conducted in 2008. Ninety-six respondents answered the extensive questionnaire, which helped identify how cultural differences are perceived by auditors and how these differences influence the implementation, effectiveness and efficiency of certification schemes. Based on the results, the authors formulate recommendations for standard setters and auditors, as well as the companies that implement these standards.Agribusiness, Certification Schemes, Culture, Intercultural Context., Agricultural and Food Policy,

Perceived Market Risks and Strategic Risk Management of Food Manufactures: Empirical Results from the German Brewing Industry

The food industry is currently facing huge structural changes, such as growing concentration ratios and degrees of internationalization and as well as the reorganizations of food supply chains. Such developments do not only contribute to growing market risks but also require strategic reorientations on the part of food manufacturers. So far, risk management and strategic planning have been two fairly separated theoretical strands. In this paper we blend both schools of thought and analyze food manufacturers' perceived market risks and strategic risk management of food manufacturers. Empirical Our data stem from large-scale empirical research in the German brewing industry.Brewing industry, market risks, risk management, Agribusiness, Risk and Uncertainty,

Corporate Social Responsibility in Agribusiness: Empirical Findings from Germany

The social responsibility of businesses has developed into a highly debated issue in recent years. Especially in agribusiness, recent scandals as well as information asymmetries concerning food production have led to high external pressure on firms from the wider public. Being confronted with a variety of stakeholder goals and relationships, it could be particularly advantageous for enterprises in agribusiness to pursue a corporate social responsibility (CSR) strategy. Based on a literature review, we introduce a conceptual framework that provides insights into the determinants of CSR and its effects, in particular, on the legitimacy and reputation, and finally, the performance of enterprises in agribusiness. This contingency-theoretic approach allows a more thorough analysis of CSR strategies and has guided an empirical study. In 2008, 170 German agribusiness companies responded to an online survey, using a standardized questionnaire. The empirical findings provide in-depth insights into the perception of external pressure in various fields linked to food production (for instance, use of genetically modified organisms), the understanding of social responsibility by the agribusiness companies surveyed and the way CSR is integrated into the firms’ strategic management. We also present three clusters of companies that differ with regard to their dominant motives for pursuing CSR strategies.corporate social responsibility, CSR, agribusiness, survey, sustainability, food scandals, Agricultural and Food Policy,