Managing Common Goods in Supply Chain: Case of Agricultural Cooperatives

TitleManaging Common Goods in Supply Chain: Case of Agricultural Cooperatives
Publication TypeConference Paper
Year of Publication2014
AuthorsSaikouk, T, Badraoui, I
EditorBlecker, T, Kersten, W, Ringle, CM
Title of ProceedingsInnovative Methods in Logistics and Supply Chain Management
Conference LocationHamburg
ISBN Number978-3-8442-9878-9; 978-3-8442-9880-2
ISSN NumberISSN (print) 2365-4430, ISSN (online) 2365-5070
Keywordscollaboration dynamics, common goods, social dilemma, Supply Chain, Sustainability

This paper synthesizes research findings on managing common goods with an
application on the agricultural supply chain. Effective management of common
goods highly depends on the effort and contributions of each member of the
group and the equitable sharing of the added value. However, this contribution
is not automatically guaranteed as some members tend to behave
opportunistically, which leads to operations inefficiency and higher costs along
the supply chain, resulting in lower benefits for the whole group, and ultimately,
in the failure of the business. The objective of the paper is to analyze members’
behaviors in an attempt to understand their dynamics within the supply chain. In
this regard, we rely on the social dilemmas perspective to suggest a resolution
mechanism to reduce opportunism and improve the management of common
goods within the supply chain, highlighting the importance of communication,
group identity, group size, and informal sanctions. The data collected for the
case study accounts for nearly 1500 farmers belonging to 147 cooperatives,
each one having to manage a common good. The results of this analysis allow
us to confirm the relevance of recognizing and resolving social dilemmas in
supply chain. We also discuss implications for the sustainable development of
agricultural supply chain.