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Are certified supply chains more socially sustainable? A bargaining power analysis

Donati, Michele,Drut, Marion,Gauvrit, Lisa,Gil Roig, José María,Nguyen, Anh Duc,Viet, Hoang Nguyen,Ferrer Pérez, Hugo,Papadopoulus, Ioannis,Bellassen, Valentin,Veneziani, Mario

Abstract

Food quality schemes (FQS: organic and geographical indication products) are often supposed to be more sustainable by their political advocates. We explore the social sustainability advantage of FQS through the lens of supply chains’ bargaining power (BP) distribution. We propose an indicator synthesizing different sources underlying BP (competition-based, transactional, institutional) and counting two dimensions (fair BP distribution and adaptation capacity), that we apply to 18 FQS supply chains and corresponding reference. FQS perform better than their reference products on both dimensions. This better performance is due to a combination of sources.

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1 A e ce i ied supply chains mo e socially sus ainable? A ba gaining powe analysis1 Paul Mulle a2 , Michael Böhmb, Pé e Csillagc, Michele Dona id, Ma ion D u e, Hugo Fe e , Lisa Gau i b, Chema Gil , Vie Hoangg, Aga a Malak-Rawlikowskah, Kons adinos Ma asi, O achos Napasin uwongj, An Nguyeng, Ioannis Papadopoulosi, Bojan Ris ick, Zaklina S ojano ick, Á on Tö ökl,c, E himia Tsaki idoui, Ma io Venezianid, Valen in Bellassene a BETA, CNRS - Uni e si y o Lo aine – Uni e si y o S asbou g & INRA, F ance b ECOZEPT, Ge many c ECO-SENSUS Resea ch and Communica ion, Hunga y d Uni e si y o Pa ma, I aly e CESAER, Ag oSup Dijon, INRA, Uni . Bou gogne F anche-Com é, 21000 Dijon, F ance Cen e o Ag o-Food Economy & De elopmen , Spain g Uni e si y o Economics Ho Chi Minh Ci y, Vie nam h Wa saw Uni e si y o Li e Science, Poland i A is o le Uni e si y o Thessaloniki, G eece j Kase sa Uni e si y, Thailand k Uni e si y o Belg ade, Se bia l Co inus Uni e si y o Budapes , Hunga y Abs ac : Food Quali y Schemes (FQS: o ganic and geog aphical indica ion p oduc s) a e o en supposed o be mo e sus ainable by hei poli ical ad oca es. We explo e he social sus ainabili y ad an age o FQS h ough he lens o supply chains’ ba gaining powe (BP) dis ibu ion. We p opose an indica o syn hesizing di e en sou ces unde lying BP (compe i ion-based, ansac ional, ins i u ional) and coun ing wo dimensions ( ai BP dis ibu ion and adap a ion capaci y), ha we apply o 18 FQS supply chains and co esponding e e ence. FQS pe o m be e han hei e e ence p oduc s on bo h dimensions. This be e pe o mance is due o a combina ion o sou ces. Keywo ds: Ba gaining powe , ma ke powe , ansac ion cos s, ins i u ions, social sus ainabili y indica o Key esul s: - FQS can globally be conside ed as socially mo e sus ainable han con en ional e e ence p oduc s ega ding ba gaining powe dis ibu ion. - Bu his highe sus ainabili y only pa ly builds on hei capaci y o mo e e enly dis ibu e ba gaining powe among le els. Acco ding o ou esul s, ano he key de e minan o hei social sus ainabili y lies in hei adap a ion capaci y, ie. hei capaci y o esis and accommoda e po en ial pe u ba ions. - The sus ainabili y ad an age o FQS o e con en ional coun e pa s is based on a combina ion o sou ces base hei ad an age o e con en ional p oduc s by combining sou ces o ba gaining powe ins ead o elying on a single one 1 This pape is a esea ch ou pu o he S eng h2Food p ojec which was unded om he Eu opean Union’s Ho izon 2020 esea ch and inno a ion p og am unde g an ag eemen No 678024. We since ely acknowledge wo anonymous e iewe s o hei commen s ha g ea ly imp o ed he quali y o he manusc ip . 2 Co esponding au ho , email: paul.mulle @uni -lo aine. 2 A e ce i ied supply chains mo e socially sus ainable? A ba gaining powe analysis Abs ac : Food Quali y Schemes (FQS: o ganic and geog aphical indica ion p oduc s) a e o en supposed o be mo e sus ainable by hei poli ical ad oca es. We explo e he social sus ainabili y ad an age o FQS h ough he lens o supply chains’ ba gaining powe (BP) dis ibu ion. We p opose an indica o syn hesizing di e en sou ces unde lying BP (compe i ion-based, ansac ional, ins i u ional) and coun ing wo dimensions ( ai BP dis ibu ion and adap a ion capaci y), ha we apply o 18 FQS supply chains and co esponding e e ence. FQS pe o m be e han hei e e ence p oduc s on bo h dimensions This be e pe o mance is mos ly due o a combina ion o sou ces. Keywo ds: Ba gaining powe , ma ke powe , ansac ion cos s, ins i u ions, social sus ainabili y indica o Key esul s: - FQS can globally be conside ed as socially mo e sus ainable han con en ional e e ence p oduc s ega ding ba gaining powe dis ibu ion. - Bu his highe sus ainabili y only pa ly builds on hei capaci y o mo e e enly dis ibu e ba gaining powe among le els. Acco ding o ou esul s, ano he key de e minan o hei social sus ainabili y lies in hei adap a ion capaci y, ie. hei capaci y o esis and accommoda e po en ial pe u ba ions. - The sus ainabili y ad an age o FQS o e con en ional coun e pa s is based on a combina ion o sou ces base hei ad an age o e con en ional p oduc s by combining sou ces o ba gaining powe ins ead o elying on a single one 3 In oduc ion A common a gumen pu o wa d by ad oca es o FQS (Food Quali y Schemes - co e ing o ganic, geog aphic indica ion, and sho ood supply chains3) supply chain is ha hey a e mo e socially sus ainable han hei con en ional coun e pa s. This sus ainabili y p emium no ably mani es s h ough highe su i al a es o small ag icul u al i ms (Bon emps, Bouam a-Mechemache, and Simioni 2013) and hei con ibu ion o u al e i o ies de elopmen and eco e y (T egea e al. 2007). Exis ing li e a u e has iden i ied se e al ac o s explaining his sus ainabili y p emium. On he one hand, i s ems om he collec i e de elopmen o speci ic asse s a he supply chain le el (see Ba jolle and Syl ande 2002). In he speci ic case o geog aphic indica ions, hey consis , o ins ance, o he de elopmen o pa icula o ganolep ic a ibu es con ibu ing o he speci ici y o he end p oduc (Mancini, A ini, and Gua eschi 2019). On he o he hand, i is due o he exis ence o collec i ely nego ia ed and accep ed speci ica ions, con ibu ing o e en ou ba gaining powe among s akeholde s (Sonnino 2009). This e ening ou p ocess is iewed as an essen ial de e minan o hei capaci y o ai ly dis ibu e he alue gene a ed h oughou he chain (Co 1999; Bonne and Bouam a-Mechemache 2016). Howe e , pas esea ch ha in es iga ed he ela ionship be ween FQS sus ainabili y and ba gaining powe has o en con la ed i wi h ma ke powe (see Bonne and Bouam a-Mechemache 2016). Bu , he concep o ba gaining powe is mul idimensional. Exis ing li e a u e has iden i ied, among o he s, i s compe i ion- based (Ba ney 1986; Po e 2008a), ansac ional (Filippi and Mulle 2013), and ins i u ional sou ces (Co 1999; To e 2002). This pape in ends o in es iga e whe he FQS achie e mo e balanced ba gaining powe dis ibu ions, hus allowing hem o be mo e socially sus ainable han con en ional supply chains. To his end, he pape akes on a mo e comp ehensi e unde s anding o ba gaining powe as oo ed in di e en sou ces: compe i ion-based, ansac ional, and ins i u ional. We a gue ha he exis ence o a possible sus ainabili y ad an age o FQS ela ed o ba gaining powe elies on a combina ion o i s di e en sou ces. In so doing, we p opose an o iginal me hod o building up and es ing a syn he ic indica o accoun ing o he e ical dis ibu ion o ba gaining powe in supply chains, which inco po a es compe i ion, ansac ional and ins i u ional a iables. Ano he o iginali y compa ed o exis ing li e a u e ha usually ea s o only one ype o ood p oduc (cheese, wine, e c.) is ha he p oposed indica o is es ed on 18 Eu opean and Asian FQS supply chains o di e en ypes o ood p oduc s (sea, animal, ege al) and compa ed wi h con en ional e e ence p oduc s4. To his end, we exploi da a collec ed in he ame o he H2020 S eng h2Food p ojec 5. An ad an age o he p oposed indica o is ha i allows pe o ming a i s e alua ion o a supply chain social sus ainabili y by elying on simple and easy- o-ob ain a iables (eg. numbe o i ms ope a ing a each le el, he exis ence o FQS managemen unions, con ibu ion o he conside ed le el o he speci ici y o he end p oduc , e c.). Fu he mo e, i p o ides an o e iew o he dimensions (compe i ion, ins i u ional, esou ces) ha a e likely o be a he oo o a supply chain le el’s ba gaining powe , hus pa ing he way (a e , o 3 Due o i s scope, his pape only conside s geog aphic indica ion (PDO – P o ec ed Denomina ion o O igin -, PGI – P o ec ed Geog aphical Indica ions) and o ganic ood supply chains. 4 A e e ence p oduc is he e de ined as a p oduc ha may be conside ed as a subs i u e o he FQS p oduc by non-specialis consume s and / o o p oduce s, as FQS p oduce can choose o p oduce bo h e e ence o FQS p oduc , being in he same coun y o egion. 5 In o ma ion abou he p ojec a e a ailable a h ps://www.s eng h2 ood.eu/. 4 cou se, he collec ion o deepe knowledge) o possible enhancemen s o i s social sus ainabili y. Ou pape is o ganized as ollows. In he second sec ion, we p esen and heo e ically ad oca e o a b oade concep ion o ba gaining powe which be e accoun s o social sus ainabili y issues, which is mul i ac o ial (including compe i ion-based, ansac ional, and ins i u ional ac o s) and collec i e. We p opose in sec ion h ee a se o a iables aimed a ope a ionalizing ou heo e ical discussion. They a e a he oo o he calcula ion o a social sus ainabili y indica o based on ba gaining powe ha will be p esen ed in sec ion ou . Sec ion i e p esen s he esul s o his sus ainabili y assessmen , be o e concluding. Cons uc ing social sus ainabili y indica o s based on ba gaining powe Ba gaining powe as a mul idimensional phenomenon As ba gaining powe de e mines he capaci y o indi idual s akeholde s o cap u e he alue c ea ed along he supply chain (Co 1999; 2010), ou indica o is conce ned wi h he epa i ion o ba gaining powe among indi idual ac o s. I is closely linked o se e al indica o s p oposed in he SAFA (Sus ainabili y Assessmen o Food and Ag icul u e sys ems) ypology, such as hose pe aining o ai ade p ac ices (FAO 2013). I is de ined as an ac o ’s capaci y o in luence in i s a o he de ini ion o e ms and condi ions o a con ac (A gy es and Liebeskind 1999). I s anda d mic oeconomics has essen ially con la ed ba gaining powe wi h ma ke powe , such an app oach can ha dly be applied o he analysis o ac ual supply chains. Fi s , mos supply chains a e based upon coope i ion ela ionships (B andenbu ge and Nalebu 1996; Beng sson and Kock 2014), hus s e ching beyond simple ma ke ela ions. A consequence is ha ba gaining powe also has o be conside ed as a collec i e a ibu e, se e al ac o s being able o weigh in on he ba gaining p ocess by coo dina ing agains opposing pa ies. Second, playe s can oo hei ba gaining powe on o he a ibu es han ma ke posi ion. Fo ins ance, hey can ake ad an age o he possession o speci ic esou ces as ba gaining inpu s (Co 1999). Finally, i igno es he ole he ins i u ional se ings is likely o play o shaping i s dis ibu ion, and, mo e pa icula ly, he key ole o collec i e ules (No h 1994). Ul ima ely, by aking a wide lens han only ha o ma ke mechanisms, we adop a mo e global concep ion o ba gaining powe ha is mul i ac o al and collec i e, because we asce ain he capaci y o ac o s o di e en supply chain le els o weigh in on ba gaining p ocesses. In so doing, a cen al aim o he pape is o es he exis ence o a sus ainabili y ad an age o FQS supply chains which is due o he exis ence o mo e balanced ba gaining powe dis ibu ion. A subsequen objec i e is o check whe he his sus ainabili y ad an age can be a ibu ed o one dominan o di e en ba gaining powe sou ces: compe i ion-based, ansac ional, ins i u ional. In he nex pa ag aph, we discuss main ac o s in luencing supply chain le els’ collec i e ba gaining powe . F aming he sou ces o ba gaining powe Ma ke powe and compe i i e ad an age cons i u e a i s sou ce o ba gaining powe . Se e al pape s used i as a basis o analyzing he economic e iciency o FQS supply chains (Mé el 2011), he capaci y o ac o s o cap u e alue (Richa ds, Acha ya, and Molina 2011) o o manage e ical ela ionships (Wyche ley 2002). On his side, Po e (1979) de eloped a comp ehensi e de ini ion o compe i ion-based ba gaining powe , inhe i ed om he 5 s a egic concep ion o compe i i e ad an age. Also known as he i e o ces model, his compe i ion-based model assesses ac o s’ ba gaining powe a he supply chain le el while conside ing a he same ime he h ea o possible subs i u es (Po e 2008b). I was o iginally designed o assessing pe o mance a he i m le el h ough an explici accoun o i s en i onmen (Po e 1979). The model has hen been applied o indus ies and alue-chains and used o assessing he ba gaining powe a each o hei s ages (Besanko e al. 2009; Po e 2008b). Mo e p ecisely, i app aises a i m’s ba gaining powe h ough he in luence o i e o ces: indus y i al y, h ea o new en an s, h ea o subs i u e p oduc s and se ices, ba gaining powe o supplie s, and o cus ome s. Those o ces limi i ms’ ba gaining powe by cons aining hei s a egies and beha io s. I is impo an o no e ha h ee o ces ( h ea o new en an s, h ea o subs i u e p oduc s, and indus y i al y) apply a he conside ed s age o he supply chain and may hus be quali ied as “ho izon al o ces” while he wo o he s (ba gaining powe o supplie s and o cus ome s) a e dealing wi h e ical ela ions which a e, in u n, expec ed o be subjec o he same ypes o ho izon al o ces (see C ook & Combs, 2007). Howe e , hose e ical o ces may be o se in he case ha a dominan i m can adop a monopolis ic beha io . A second sou ce o ba gaining powe comes om ac o s’ capaci y o de elop and o exploi ansac ion cos s. So a , T ansac ion Cos s Theo y (TCT) in he con ex o ag icul u al economics has been mainly used o discussing he mos e icien supply chain go e nance model (ma ke /hyb id / e ical in eg a ion) (Fe nández-Olmos e al. 2009). In ou case (and his is an o iginali y o his pape ), we apply T ansac ion Cos s Economics o analyzing disc epancies in ba gaining powe (see Klein 1980) in ag i ood supply chains. T ansac ion cos s a e oo ed in wo phenomena: unce ain y and asse speci ici y. Unce ain y is ela ed o he di icul y o obse ing beha io and pe o mances (in e nal unce ain y) and o he en i onmen ’s complexi y and u bulence le els (ex e nal unce ain y) (Williamson 1981). A solu ion p oposed by TCT o coping wi h unce ain y is o eplace spo ansac ions by long e m con ac s. A consequence is ha hey limi ac o s’ con ac ual lexibili y by con ibu ing o aising swi ching cos s. In his sense, long- e m con ac s limi ba gaining powe because, once se led, i becomes mo e di icul o enego ia e he e ms o he ag eemen . Mo e globally, and his has been pa icula ly highligh ed o ag i- ood supply chains, he choice o long- e m con ac s is no necessa ily aimed a minimizing ansac ion cos s, bu also e lec s he ba gaining powe ad an age o downs eam ac o s (Ba jolle and Chappuis 2000). Speci ic asse s co espond o in es men s dedica ed o de eloping a ela ionship be ween wo economic agen s (Williamson 1981). S ic ly speaking, speci ic asse s should limi he ba gaining powe o hei owne s because hey inc ease exi cos s (Vukina and Leegomonchai 2006). Howe e , a mo e ex ensi e concep ion o asse speci ici y, which has been de eloped in he esou ce-based li e a u e, posi s ha an ac o ’s con ibu ion o he ela ionship suppo s i s ba gaining powe : pa ne s con ibu ing wi h speci ic esou ces ha a e key o he speci ici y o he end p oduc de elop highe ba gaining powe (Long ellow Blodge 1991; She ani, e al. 2007). All in all, he ela ionship be ween ba gaining powe and ansac ion cos s ia asse speci ici y appea s o be ambiguous. On he one hand, unce ain y induces long- e m con ac s, which con ibu es o lowe ba gaining powe by aising swi ching cos s. On he o he hand, owned and de eloped speci ic asse s and esou ces con ibu e o ba gaining powe p ecisely because hey inc ease ansac ion cos s. In he speci ic case o GI (geog aphical indica ion) p oduc s, speci ic asse s a e conside ed as key o es ablishing hei 6 uniqueness and, he e o e, hei comme cial success (Ba jolle and Syl ande 2002). This is why we conside ha asse speci ici y has a posi i e impac on ba gaining powe . A hi d, collec i e, sou ce o ba gaining powe is associa ed wi h he ins i u ional amewo k. We ake on he ins i u ionalis iew de eloped in he adi ion o No h, who de ined ins i u ions as “ he ule o he game in a socie y o , mo e o mally, a e he humanly de ised cons ain s ha shape human in e ac ion. In consequence, hey s uc u e incen i es in human exchange, whe he poli ical, social, o economic” (No h 1990 p.3). Ou o his de ini ion, i is assumed ha ins i u ions con ibu e o egula ing ba gaining powe by cons aining indi idual beha io . Fo FQS, his is no ably done h ough he collec i e de elopmen o speci ica ions, which se speci ic p oduc ion p ac ices and minimal s anda ds o quali y o he p oduc , and con ol o p oduc ion le els (Gi aud-Hé aud and Sole 2003). In u n, he managemen o hose speci ica ions may be ope a ed by managemen conso ia. Fu he mo e, se e al pape s highligh he ac ha ag i- ood supply chains o ganized a ound s ong managemen conso ia globally show highe coope a ion le els han supply chains ha a e no (Di e and B oua d 2014; Ma in and Tanguy 2018; Louba esse and Pes e 2014). Howe e , as No h ecalled: “ins i u ions a e no necessa ily o e en usually c ea ed o be socially e icien ; a he hey, o a leas he o mal ules, a e c ea ed o se e he in e es s o hose wi h he ba gaining powe o c ea e new ules” (No h 1994, pp. 360-361). I ollows ha ins i u ions a e designed o suppo ing he ba gaining powe o al eady dominan ac o s (F iedbe g 1997). Tha said, a a collec i e le el, ins i u ions a e key o suppo ing collec i e ac ion and s a egies because hey p o ide sa egua ds agains con lic s and oppo unis ic beha io s (Ring and Van de Ven 1994). As such, p o essional ne wo ks and unions ha e o be conside ed bo h as an ou pu and as a ac o unde lying ins i u ionally “ hick” en i onmen s (Keeble e al. 1999). “Ins i u ional hickness” he e o e con ibu es o a highe collec i e ba gaining powe a he conside ed le el o he supply chain. Ba gaining powe is mul i ac o ial and is in luenced by compe i i e, ansac ional, and ins i u ional ac o s. Howe e , i should also be s essed ha iden i ied ac o s can, o some deg ee, in e ac wi h each o he . Fo ins ance, ins i u ional hickness may be ela ed o he exis ence o s ong ma ke leade s, as hey ha e a highe capaci y o se le con en ions and no ms o beha io (see Mulle 2006). Table 1 summa izes ou discussion o he ac o s in luencing he ba gaining powe o each le el o a supply chain. Fac o s Expec ed impac on ba gaining powe Compe i i e Ho izon al o ces: deg ee o compe i ion, h ea o new compe i o s Nega i e Ve ical o ces: ba gaining powe o supplie s and cus ome s Nega i e Exis ence o a ma ke leade Posi i e T ansac ional Con ac ual lexibili y Posi i e Asse speci ici y Posi i e Ins i u ional Ins i u ional “ hickness” Posi i e Table 1: Fac o s in luencing supply chain le el's collec i e ba gaining powe Ou o he p eceding discussion, we can pu o h wo hypo heses ha will be es ed in he empi ical pa o he pape . 1) FQS supply chains achie e e ically mo e balanced ba gaining powe dis ibu ion han con en ional p oduc ions. 2) This mo e balanced dis ibu ion is due o he complemen a y ac ion o di e en sou ces o ba gaining powe 7 a he han ha o one single sou ce. The nex sec ion aims o ope a ionalize p e ious discussions by desc ibing he me hodology o building up social sus ainabili y indica o s based on ba gaining powe . Cons uc ing a iables o assessing collec i e ba gaining powe In he objec i e o doing a compa a i e analysis o di e en supply chains, we s a by cons uc ing a syn he ic indica o o ba gaining powe o each le el o each supply chain. This indica o is in u n based on a iables accoun ing o di e en sou ces (compe i ion-based, ansac ional, and ins i u ional), which we de ail in his sec ion. To he bes o ou knowledge, his pape is he i s a emp o cons uc a syn he ic indica o o ba gaining powe by agg ega ing a iables om hose di e en sou ces. Among hem, some a e dicho omous while o he s a e quan i a i e. We ha e chosen o no malize o o dicho omize hese a iables o a oid undesi able o e weigh ing e ec s. Compe i ion-based a iables In line wi h Po e (1979), a supply chain le el’s ba gaining powe is in luenced by e ical and ho izon al o ces, which ou model accoun s o h ough wo a iables. A i s a iable (Ma ke Leade ) cap u es e ical o ces unde lying ba gaining powe . To his aim, we assume ha a le el is conside ed mo e obus agains e ical o ces when i coun s one o a ew dominan ac o s who can en o ce hei ba gaining powe while nego ia ing wi h ups eam and downs eam le els. The impac o s ong ma ke leade s is pa icula ly isible in p i a e and, o a lesse ex en , in public quali y labels (Raynaud, Sau ee, and Valceschini 2005). The iden i ica ion o leade s is based on he ma ke sha e o he main compe i o . Al hough he li e a u e does no make clea he h eshold om which a i m can be quali ied as a ma ke leade , ou da a e eal wo e y di e en ypes o si ua ions. Some le els o supply chains come close o a si ua ion o pu e compe i ion, wi h e y low ma ke sha es, whe eas o he supply chains include playe s whose ma ke sha e sys ema ically exceeds 25%. We e ain his obse a ion. Ou Ma ke Leade a iable, he e o e, akes alue 1 i a leas one i m has a ma ke sha e o a leas 25% and 0 o he wise. Ho izon al o ces a e cap u ed by a a iable accoun ing syn he ically o he ela i e numbe o compe i o s exis ing a each le el o he supply chain6. Indeed, he collec i e ba gaining powe a one le el is likely o depend on he ela i e numbe o ac o s a all le els, as oligopolies o oligopsonies occupy dominan posi ions. The e o e, his balance o powe is cap u ed h ough a disc e e a iable (Num_compe )7. A speci ic di icul y a ises o compu ing his a iable in a simple way. This is why we make he me hodological choice o basing he Num_compe a iable on a compa ison o he numbe o i ms a each le el. We dis inguish be ween h ee possibili ies: 6 An impo an aspec ha has o be conside ed in ou calcula ion is he exis ence o coope a i es and o o ganiza ions o p oduce s. As hey a e usually designed o g ouping he p oduc ion o se e al a me s, we made he me hodological choice o conside ing he numbe o coops ins ead o membe a me s when calcula ing he Num_compe indica o a he p oduce le el. 7 Popula indica o s such as Le ne index (Le ne 1934), B esnahan’s ma k-up es (B esnahan 1982), Panza - Rosse H-s a ic ics (Panza and Rosse 1987) a e conce ned wi h calcula ed ho izon al ma ke powe while we a e in e es ed in assessing i s impac along supply chains. Besides hei calcula ion necessi a es da a dealing wi h ma ke (demand elas ici y, e c.) and indus ial cha ac e is ics (cos s uc u e) ha we e no a ailable. 8 1) a le el is conside ed as highly compe i i e i he numbe o compe ing i ms is much highe han he agg ega e numbe o ac o s a all o he le els. The Num_compe a iable akes alue 0 in his case. 2) a le el is conside ed as ai ly compe i i e i he numbe o compe i o s is commensu a e wi h he agg ega e numbe o ac o s in all o he le els. The Num_compe a iable akes alue 0,5 in his case. 3) a le el is conside ed as no concu en ial i he numbe o compe i o s is lowe han he agg ega e numbe o ac o s in all o he le els. The Num_compe a iable akes alue 1 in his case. The cons uc ion o he Num_compe is illus a ed in igu e 1. Figu e 1: Algo i hm o se ing he alue o he num_compe a iable T ansac ional a iables T ansac ional a iables cap u e wo e ec s. The i s one is dealing wi h con ac ual lexibili y. As a gued in he heo e ical sec ion, high le els o unce ain y lead o a g ea e p opensi y o adop long- e m con ac s, hus con ibu ing o dec easing ela ional lexibili y. This is why we p oxy lexibili y by in oducing a a iable (p op_con ac ) es ima ing he sha e o olumes ha is subjec o plu iannual con ac ing wi h he downs eam le el. The lowe he sha e o plu iannual con ac ing, he mo e lexible he ela ionship is supposed o be, he highe he associa ed sco e. The second e ec is dealing wi h he collec i e capaci y o de eloping speci ic asse s and exploi ing hem in such a way ha hey a e conside ed as key o he speci ici y o he end p oduc . This e ec is cap u ed in wo ways. Fi s , h ough an e alua ion o he global deg ee o speci ici y o mobilized asse s a he conside ed le el (spec_ es); second, h ough an es ima ion o he con ibu ion o he conside ed le el o he speci ici y o he end p oduc (p od_p oc). Fo ins ance, by mobilizing speci ic asse s, knowledge, and compe encies, FQS a me s a e expec ed o possess highe ba gaining powe han con en ional a me s (Mo gan and Mu doch 2000). In he same way, PDO p oduc s a e p o ed o aise highe loyal y le els on he consume side (Fandos and Fla ián 2006), which con ibu es o aising swi ching cos s o e aile s. 9 Bo h a iables a e coded on a ou -poin Like scale, a e assessmen made by key in o man s o each supply chain. The a iable spec_ es akes alue ze o when he esou ces mobilized a he conside ed le el a e gene ic and i akes alue h ee when he esou ces a e conside ed as highly speci ic and canno be echnically eplaced by subs i u es. In he same way, he a iable p od_p oc akes alue ze o when he con ibu ion o he p oduc o he conside ed le el is conside ed as negligible o he speci ici y o he end p oduc and akes alue h ee when i s con ibu ion is conside ed as undamen al o he speci ici y o he end p oduc . Ins i u ional a iables Ins i u ional a iables g asp he abili y o supply chains o build up a complex se o p ocedu al ules o egula ing indi idual beha io s. Howe e , e en hough some o hem a e o mal (eg. speci ica ions), mos a e in o mal by na u e, as hey pe ain o locally embedded cul u al ai s and ou ines (see eg. Ge le 2001, 2003). This makes i di icul o di ec ly app aise a supply chain’s “ins i u ional hickness”. This is why we assess ins i u ional hickness indi ec ly, h ough he exis ence o p o essional unions. This p oxy can be conside ed as qui e eliable because, as p e iously discussed, conso ia e idence he capaci y o ac o s o o m collec i es and o es ablish collec i e s a egies (Raynaud, Sau ee, and Valceschini 2005; Raynaud, Fe nández-Ba cala, and Gonzalez-Diaz 2013; Ma in and Tanguy 2018). We, he e o e, assume he exis ence o a posi i e ela ionship be ween “ins i u ional hickness” and supply chain ac o s’ capaci y o o m and o belong o di e se p o essional unions. In so doing, we iden i y wo ele an a iables. The i s one (Union_FSC) e e s o he exis ence o unions and conso ia speci ically ela ed o he supply chain. This a iable is ele an because his ype o union/conso ium indica es he exis ence o spaces o collec i e discussion and coo dina ion among supply chain ac o s. Besides, hey ac as lobbying bodies aimed a p omo ing he in e es o hei membe s. The second a iable (union_o he s) ela es o he exis ence o any o he sec o al union ela ed o he p oduc (eg. p o essional union o mea o o ce eal p oduce s…). They also ha e o be conside ed because hey no only achie e collec i e coo dina ion and lobbying asks (see Mé el 2011), bu hey also ie up local supply chains wi h a wide , na ional, p oduc i e con ex . Bo h a iables a e dicho omous because hey only aim a accoun ing o he exis ence o p o essional unions/conso ia. Table 2 summa izes a iables used o building up he ba gaining powe sco es o each le el and associa ed possible alues. 16 Globally, ou indings sugges he impo ance o dis inguishing be ween animal and ege al supply chains as bo h ypes o supply chains show di e en beha io s in e ms o ba gaining powe dis ibu ion. One explana ion o his in e sec o al he e ogenei y could lie in di e ences in he in luence exe ed by di e en ypes o ac o s, whe he hey ela e o he compe i i e and ins i u ional con ex o be ansac ional. This esul aises he ques ion o he sou ces o he sus ainabili y ad an age o FQS o e e e ence. Nex de elopmen s will y and iden i y ac o s unde lying he social sus ainabili y ad an age o FQS by dis inguishing compe i ion-based, ansac ional, and ins i u ional ac o s. Figu e 3: p opo ion o FQS supply chains in each p o ile – uppe le -hand-side panel: dis ibu ion in each sus ainabili y p o ile o all FQS supply chains, uppe igh -hand-side panel: dis ibu ion in each sus ainabili y p o ile o PDO supply chains – lowe le -hand-side panel dis ibu ion in each sus ainabili y p o ile o o ganic supply chains - lowe igh -hand-side panel dis ibu ion in each sus ainabili y p o ile o PGI supply chains - a e age esul s ob ained a e 10 000 Mon e Ca lo uns 17 Figu e 4: p opo ion o FQS supply chains in each p o ile – uppe le -hand-side panel: dis ibu ion in each sus ainabili y p o ile o all FQS supply chains - uppe middle panel: dis ibu ion in each sus ainabili y p o ile o ui - ege able supply chains - uppe igh -hand-side panel: dis ibu ion in each sus ainabili y p o ile o ce eal/bake y supply chains – lowe le -hand-side panel: dis ibu ion in each sus ainabili y p o ile o dai y supply chains – lowe middle panel: dis ibu ion in each sus ainabili y p o ile o mea supply chains – lowe igh -hand-side panel: dis ibu ion in each sus ainabili y p o ile o sea ood supply chains - a e age esul s ob ained a e 10 000 Mon e Ca lo uns 18 Iden i ying ac o s unde lying FQS’ social sus ainabili y Wi h all a iables Wi hou Compe i ion a iables Wi hou T ansac ional a iables Wi hou ins i u ional a iables Ba gaining powe dis ibu ion Nb. o ad an aged FQS 13 11 10 11 No di e ence 1 1 5 2 Nb. o disad an aged FQS 4 6 3 5 Nb o SC wi h a key con ibu ion o a iable ca ego ies / 3 3 2 Ba gaining powe o weakes le el / adap a ion capaci y Nb. o ad an aged FQS 15 16 12 14 No di e ence 1 2 6 1 Nb. o disad an aged FQS 2 0 0 3 Nb o SC wi h a key con ibu ion o a iable ca ego ies / 1 4 2 Table 3: Compa ison o FQS and co esponding e e ences supply chains along ba gaining powe dimensions – esul s based on T- es s o p < 0.01 a e 10 000 Mon e Ca lo uns. This sec ion aims a iden i ying he ac o s unde lying FQS’s social sus ainabili y ad an age o e e e ences. I is based on wo-by- wo compa isons. In so doing, we d ew in he heo e ical discussion a dis inc ion be ween di e en ypes o ac o s, each co esponding o di e en ca ego ies o a iables (c . able 1): compe i ion-based, ansac ional, and ins i u ional. Table 4 p esen s esul s o Mon e Ca lo simula ion uns pe o med on each supply chain unde se e al con igu a ions: 1) when all a iable ca ego ies we e included (column “wi h all a iables”), 2) when only ansac ional and ins i u ional a iables we e included (column “wi hou compe i ion a iables”), 3) when only compe i ion and ins i u ional a iables we e included (column “wi hou ansac ional a iables”), 4) when only compe i ion and ansac ional a iables we e included (column “wi hou ins i u ional a iables”). Fo each dimension (ba gaining powe dis ibu ion and ba gaining powe o he weakes le el) we hen coun ed he numbe o FQS supply chains ha signi ican ly pe o med be e / equally / wo se han co esponding e e ence supply chains a a p < 0,01 signi icance le el. Finally, we coun ed he numbe o FQS supply chains o which any o he a iable ca ego ies had a key impac on he sus ainabili y ad an age o FQS o e co esponding e e ences: hose co espond o he si ua ion whe e FQS pe o med s a is ically be e when all a iables ca ego ies we e included and his ad an age anished when a iables o he ca ego y we e emo ed (lines “Nb o SC wi h a key con ibu ion o a iable ca ego ies”). Table 4 u he con i ms ou p e ious inding ha , o he mos pa , FQS ha e a signi ican sus ainabili y ad an age o e co esponding e e ences o e bo h dimensions (ba gaining powe dis ibu ion as well as ba gaining powe o he weakes le el). This inding howe e complemen s p e ious esul s because we base he e ou esul s on wo-by- wo compa isons be ween FQS and e e ence supply chains. Ano he in e es ing inding also lies in he ela i e s abili y o FQS’ pe o mance p emium on bo h dimensions (see lines “nb o ad an aged FQS”). Indeed, mos FQS s ill signi ican ly ou pe o med co esponding e e ences a e he emo al o any o he a iable 19 ca ego ies. Fo ins ance, conce ning ba gaining powe dis ibu ion, 13 FQS signi ican ly ou pe o m e e ences when all a iables we e conside ed and his igu e only d ops o 11 a e emo ing compe i ion o ins i u ional a iables and o 10 a e emo ing ansac ional a iables. This inding is con i med by an inspec ion o he lines “Nb o SC wi h a key con ibu ion o a iable ca ego ies”. Compe i ion, ins i u ional, and ansac ional a iables can be conside ed as a key de e minan o he ba gaining powe dis ibu ion o only h ee and wo FQS supply chains espec i ely. A simila pa e n o indings can be obse ed o he dimension o ba gaining powe o he weakes le el / adap a ion capaci y. Those esul s e idence ha compe i i e, ansac ional, and ins i u ional a iables only ha e a limi ed indi idual impac on FQS sus ainabili y p emium. Ra he , hei p emium depends, o he mos pa , on he complemen a y e ec o all a iable ca ego ies. Those indings, he e o e, con i m ou p e ious hypo hesis ha he FQS’ sus ainabili y ad an age, as measu ed om he ba gaining powe s anding poin , comes om he in e ac ion be ween di e en e ec s, pe aining o supply chains’ compe i i e, ansac ional and ins i u ional cha ac e is ics. Besides, ou con ibu ion poin s o he impo ance o adop ing a comp ehensi e analysis o ba gaining powe in supply chains, which has no o be con la ed wi h ma ke powe bu also has o include o he dimensions, such as ins i u ional cha ac e is ics o ansac ion cos s pa e ns. Conclusion This pape e alua es he social sus ainabili y ad an age o FQS supply chains h ough he lens o ba gaining powe dis ibu ion. We base ou de elopmen on a mo e comp ehensi e concep ion o ba gaining powe , oo ed in di e en ca ego ies o ac o s: compe i ion-based, ansac ional, and ins i u ional. o his end, we p opose a syn he ic indica o mixing inpu s om hose h ee heo e ical a gumen s. Ou indica o highligh s wo dimensions o social sus ainabili y: 1) he capaci y o supply chain ac o s o each a ai dis ibu ion o ba gaining powe , and 2) he abili y o all supply chain le els o show s ong ba gaining powe a all le el, wha is conduci e o inc eased adap a ion agains po en ial shakeou s. Ou esul s show ha , globally, FQS ha e signi ican ly highe sco es in bo h dimensions han e e ence supply chains, hus g ounding e idence o hei social sus ainabili y ad an age. This conclusion is u he e i ied by s a is ical es s compa ing FQS and ela ed “ e e ence” supply chains. Bu , a he same ime, his pe o mance migh also depend on he ype o quali y sign a s ake, as well as on he ype o ag icul u al p oduc ion. Finally, ou s udy has ound e idence ha hei sus ainabili y ad an age comes om a combina ion o a ious sou ces, pe aining o he compe i i e and ins i u ional cha ac e is ics o he supply chain, as well as on ansac ion cos s. To he bes o ou knowledge, his pape is he i s ans e sal s udy e alua ing he social sus ainabili y o FQS h ough ba gaining powe . I p o ides aluable insigh s, no only by p oposing a qui e simple and easy- o-use syn he ic indica o bu also by highligh ing he exis ence o di e en social sus ainabili y p o iles. Howe e , as we adop ed a quan i a i e, ans e sal s ance, some key aspec s o s udied supply chains may ha e been o e looked. Fi s , ou indica o is based on he compa ison o ba gaining powe sco es be ween di e en le els. To his end, ou analysis elies on he key assump ion ha each le el is independen o he o he . This is no necessa ily obse ed, as ac o s in ag icul u al supply chains o en ha e a 20 s a egy o e ically in eg a ing di e en le els. Simila ly, some supply chains may be pa ly o en i ely con olled by single ac o s, such as ag icul u al coope a i es o p oduce o ganiza ions. E en hough one canno s ic ly speak o e ically in eg a ed supply chains because a ms a e legally independen o he coope a i e, his ype o cases aises a speci ic issue in he sense ha he e ical dis ibu ion o ba gaining powe would be d ama ically in luenced by coope a i es’ s a egy (Filippi, F ey, and Mauge 2008), wha is no accoun ed o in ou analysis. Ag icul u al coope a i es aise ano he speci ic issue in he analysis o he e ical dis ibu ion o ba gaining powe . Indeed, e en hough hey a e legally independen o he a ms hey se e, hei exis ence p ecisely lies in he ac ha hey aim a agg ega ing he indi idual p oduc ion o hei membe s, and a me s a e conside ed as in ol ed in se ing he coope a i e’s s a egy (Filippi 2014). Fa me s’ in es men in coope a i es is he e o e aimed a es o ing a balance in ba gaining powe wi h downs eam le els, an objec i e ha is also a s ake in p oduce o ganiza ions. To accoun o his dis o ion wi h he supply chain model, we we e led o coun a me s membe s belonging o coope a i es o p oduce o ganiza ions as one single ac o . Finally, u he de elopmen s o ou p oposed ba gaining model indica o should be e accoun o he ac ha coops ’in luence can s e ch beyond he coope a i e pe ime e and sp ead o s a egies o dominan p ac ices a he supply chain le el (see Amisse, Le oux, and Mulle 2012; Filippi and Mulle 2013). Finally, ou analysis alls sho o “sho ood supply chains”, which a e based on he assump ion o he exis ence o , a mos , one in e media y be ween a me s and end- consume s (Aub y and Chi oleau 2009). Bu a he same ime, some s udies poin o he ac ha his ype o supply chain is mo e socially sus ainable han longe ones (see eg. Can o a 2016). 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Jou nal o Ma ke ing Managemen 18 (7–8): 673–92. 25 Annex 1: lis o supply chains (FQS and e e ences) and key da a sou ces Sec o FQS p oduc Type o FQS Coun y Main da a sou ces o he FQS Re e ence p oduc Main da a sou ces o he e e ence Ce eal / bake y Cama gue ice O ganic F ance Key in o man (PGI conso ium) Non-o ganic ice (mos ly PGI) Key in o man (PGI conso ium) Thung Kula Rong-Hai (TKR) Hom Mali ice PGI Thailand Key in o man , Napasin uwong (2017) Na ional a e age Key in o man s, Rice Mills Associa ion O ganic lou O ganic F ance A ise and Agence Bio websi es Na ional a e age Agence Na ionale de la Meune ie F ançaise websi e O ganic pas a O ganic Poland Key in o man (p oduce ) Na ional a e age Key in o man Dai y Com e cheese PDO F ance Key in o man (PDO conso ium) Na ional a e age (cow cheese) F ance Ag ime (2010; 2011) Pa migiano Reggiano cheese PDO I aly Key in o man , PDO conso ium Bi aghi cheese (simila non-PDO cheese) Key in o man , ISTAT O ganic yoghu O ganic Ge many AMI (2017) Na ional a e age MIV, Fak en Milch Sep -2017 Mea Gyulai sausage PGI Hunga y PGI p oduce s Na ional a e age Key in o man (Hunga ian Mea Indus y Fede a ion), non PGI p oduce s O ganic po k O ganic Ge many Key in o man (Na u land), EcoZep Na ional a e age EcoZep Sob asada o Mallo ca PGI Spain Key in o man Na ional a e age Key in o man Te nasco de A agon PGI Spain PGI conso ium manage Non-PGI lamb in he same egion (A agon) Key in o man , Sie a (2016) Sea ood Sain -Michel Bay boucho mussels PDO F ance Key in o man (PDO conso ium) Na ional a e age (TSG Boucho mussels) Oys e gene al su ey Phu Quoc Fish Sauce PDO Vie nam Key in o man s (local expe and PDO conso ium) Non-PDO ish sauce om same egion Key in o man s (local expe and PDO conso ium) F ui / ege able Buon Ma Thuo co ee PGI Vie nam Key in o man Non-PGI co ee om Dak Lak p o ince in Vie nam Key in o man Kalocsai pap ika powde PDO Hunga y Key in o man s (PDO conso ium) Impo ed peppe milled in Hunga y Key in o man s (PDO conso ium) Kas o ia apple PGI G eece Key in o man Kissa os apples (non-GI apples om ano he egion) Key in o man O ganic aspbe ies O ganic Se bia O ganic a ms egis y Na ional a e age O icial a m egis y O ganic oma o om Emilia Romagna O ganic I aly Key in o man , OI Pomodo o da Indus ia del No d I alia Na ional a e age Key in o man , OI Pomodo o da Indus ia del No d I alia