A network perspective and value added tasks: the case of agri-food value chain

Abstract

Purpose – The purpose of this paper is to illustrate how network perspective can be used to determine the importance of key dimensions of network in driving firm’s performance within an agri-food value chain (AFVC). It aims to analyze how factors of network and value added tasks have an impact on firm’s performance in the context of agri-food sector Design/methodology/approach – This research employs a quantitative method. Based on an illustrative empirical case, the research tests a simple variance-based reflective structural equation model with main effects based on a sample of 200 firms within AFVC in Jordan. Findings – The results identify the high-order factors of business networks and demonstrate the role of network perspective on firm’s performance, acting as the main strategy to improve long-term business in AFVC. The results show that firm’s performance is mostly driven by the three key factors of network (actors, resources and activities), as well as by the four levels of value added tasks (form, time, place and possession). Research limitations/implications – This research has important implications for different level managers at firms. By understanding the various factors that are most important between partners at the firm level and between firms in a network, managers can focus their efforts on these factors in order to foster successful long-term businesses and their performances. The author further provide some managerial recommendations for more effective management of AFVC in terms of leveraging firm’s performance. Originality/value – This is one of few studies that investigate factors of network in value chain firms. The results show that the network perspective can link both the key factors of network and the levels of value added tasks for better firm’s performance in AFVC.