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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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