BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TÉ TP. HÒ CHÍ MINH BÁO CÁO TỎNG KÉT ĐÈ TÀI NGHIÊN cứu KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG "NHÀ NGHIÊN CỨU TRẺ UEH" NĂM 2024 Value Co-Creation in Transparent and Traceable Supply Chains: The Dynamics of Trust and Commitment Thuộc nhóm chuyên ngành: Thương mại - Quản trị kinh doanh Ho Chi Minh, February 2024 ABSTRACT This research delves into how Supply Chain Transparency and Traceability (SCTT) facilitate value co-creation in Vietnam's Food Supply Chains (FSCs), with a focus on the intermediary roles of consumer trust and relationship commitment. Through analyzing data from 249 valid respondents in Ho Chi Minh City via Partial Least Squares (PLS) analysis, it was found that traceability exerts a more substantial influence on consumer trust and relationship commitment compared to transparency. Nonetheless, both transparency and traceability indirectly contribute to value co creation, predominantly through the mediation of trust and relationship commitment.
The study also reveals that perceived supplier and product quality moderate the relationship between trust and value co-creation, and identifies significant gender differences in perceptions of SCTT. These findings emphasize SCTT's critical role in promoting value co-creation and inform the development of nuanced supply chain management strategies in Vietnam. Keywords: Supply Chain Transparency, Traceability, Value Co-creation, Consumer Trust, Vietnam. TABLE OF CONTENTS ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS CHAPTER 1.
Trust - Commitment theory. Suppliers - Consumers value co-creation in the supply chain. Research design and data collection. DATA ANALYSIS RESULTS.
Description of study’s respondents. Discussions of research findings. Limitations and future research directions.i LIST OF TABLES Table 1. Assessing reliability and convergent validity (N = 249).
Assessing discriminant validity of measurement model. Hypothesized direct effects testing results. Hypothesized moderating effects testing results. Mediating effects testing results.
Conditional indirect effects of Traceability on Value Co-creation. Female - Male comparisons based on their perceived effects.30 LIST OF FIGURES Figure 1. Direct effects results. Moderation plot of H8a (a) and H9a (b).
Visualization of conditional indirect effect of Traceability on Value Co creation .29 LIST OF ABBREVIATIONS RQ(s) Research Question(s) TCT Trust - Commitment Theory e. id est PLS-SEM Partial Least Squares - Structural Equation Modeling CMB Common Method Bias CR Composite Reliability AVE Average Variance Extracted VIF Variance Inflation Factor SD Standard Deviation HTMT Heterotrait-Monotrait CI Confidence Interval 1 CHAPTER 1. INTRODUCTION Bastian and Zentes (2013) highlighted the critical role of Supply Chain Transparency in Supply Chain Management (SCM), noting its increasing adoption by leading corporations to enhance scrutiny and accountability in supply chain activities (Montecchi et al. The escalating demand for transparent supply chain processes extends beyond establishing and maintaining trust among supply chain stakeholders, including consumers.
Innovations in information technology now provide end-users with ready access to diverse information sources, facilitating their understanding of the origin, authenticity, and quality of products and services (Macready et al. Supply Chain Traceability provides businesses with the means to verify origin; however, the extent to which this origin information or other supply chain data is shared with pertinent stakeholders is what defines Supply Chain Transparency (Guan et al. Traceability systems facilitate compliance with regulations, foster connections with upstream entities, inform consumers about the origins of products, bolster consumer trust, and cater to their needs. Research has shown that these systems positively impact the SCM by reducing risks and ensuring the integrity of processes within supply networks.
The operational advantages of these systems are particularly evident during product recalls, allowing companies to identify improvement areas through comprehensive supply chain data. This aids in the elimination of redundant processes and the formation of more efficient strategies for long-term growth and sustainability (Wong et al. Vietnam is intensively focusing on enhancing Supply Chain Transparency and Traceability (SCTT), recognizing their critical importance. At the "Information on Product Traceability" Scientific Conference on May 16, 2023, a key official from the Ministry of Science and Technology highlighted the urgent need for product traceability in Vietnam, especially for exports.
13/2022/ND-CP outlines the Ministry's responsibilities in product traceability, including national management support, technological capability enhancement, and aiding the development of key products for 2 social and economic progress. The decree also mandates the creation of a product and cargo traceability system for data sharing among ministries. Project 100, detailed in Decision No. 100, aims to manage traceability systems, with goals like improving traceability laws, connecting 100% of relevant ministries and departments to the National Product Traceability Portal, and ensuring at least 70% supplier connectivity (Government News - Bao Chinh phu, 2023).
The existing literature significantly recognizes the importance of SCTT, with numerous studies focusing on its effects across various industries, such as works by Astill et al. (2019), Garcia-Torres et al. (2019), Montecchi et al. (2021), and Yu et al.
(2022), or exploring enterprises' adoption of technologies like Blockchain, loT, and AI, as seen in studies by de Boissieu et al. (2021), Ehsan et al. (2022), and Khan et al. However, there is a scarcity of research on SCTT's influence on end-user behavior, with limited exceptions like Wang et al.
The connection between SCTT and consumer behavior, especially how consumers respond to suppliers' efforts in ensuring transparent and traceable supply chains in terms of co-creating value, remains underexplored. This study aims to fill this gap by providing empirical evidence from a key supply chain and consumption hub, Ho Chi Minh City, Vietnam. Therefore, this paper aims to answer the following research questions (RQ): RQ1: How can Supply Chain Transparency and Supply Chain Traceability influence consumer trust in suppliers, and how can this trust contribute to the value co creation between suppliers and consumers? RQ2: How can Supply Chain Transparency and Supply Chain Traceability affect consumer relationship commitment towards a supplier, and how can this commitment contribute to value co-creation? RQ3: How can other factors facilitate/hinder the suppliers - consumers value co creation process on the basis of Supply Chain Transparency and Traceability? The questions guide this study's objectives to examine the relationships between SCTT and suppliers - consumers value co-creation and offer insights for advancing the SCM, encouraging enterprises to devise sustainability-related strategies for SCM development in Vietnam. Trust - Commitment theory In this study, the Trust - Commitment Theory (TCT) serves as the foundational theoretical framework for constructing the research model.
TCT posits that trust and commitment within relationships are crucial to relationship development and the achievement of productive outcomes (Morgan & Hunt, 1994). While TCT has been utilized extensively in the SCM research, it has predominantly focused on larger entities such as firms and other stakeholders within supply chains. For instance, Ramirez et al. (2021) utilized TCT to predict firm performance outcomes through supply chain integration in the Latin American agri-food sector, and Mungra and Yadav (2020) examined trust - commitment and relational outcomes in manufacturer - supplier relationships via satisfaction.
However, the application of TCT to consumer behavior within supply chains has not been as thoroughly explored. This study seeks to fill this void by employing TCT to understand consumer behavior, specifically in the context of value co-creation with suppliers that exhibit SCTT. In this context, SCTT are posited as foundational elements in fostering trust and commitment within the framework of TCT, ultimately leading to value co-creation between suppliers and consumers. SCTT enhance trust by providing disclosing, accurate, clear and reliable product information, reducing perceived risks and uncertainties, while simultaneously strengthening consumer commitment through assurances of product and supplier quality.
The study further proposes that this trust commitment relationship, conducive to value co-creation, is significantly influenced by factors like consumers' health consciousness and perceived quality of both suppliers and products. Health-conscious consumers are particularly responsive to SCTT due to their concern for product safety and quality, and their perceptions of supplier and product quality further reinforce trust and commitment, enhancing their willingness to engage in collaborative value-creation activities with suppliers. Suppliers - Consumers value co-creation in the supply chain Value co-creation, a principle extensively explored in various management fields since its first introduction in 2004 (Prahalad & Ramaswamy, 2004), entails cooperative engagement among diverse business stakeholders (Vargo & Lusch, 2004). It is an interactive process where brand value is jointly created by consumers and firms during simultaneous production and consumption, integrating social contexts (Echeverri & Skâlén, 2011).
This approach not only bolsters a firm's competitive advantage but also requires firms to enable consumer participation in brand value creation (Prahalad & Ramaswamy, 2004). It involves customers' voluntary and interactive engagement with the brand (France et al. Most recently, Ribeiro, Costa, Ferreira and Freire (2023, p. 1) described value co-creation as an active, imaginative, and collective process where a company and its stakeholders jointly work together, producing benefits and value for all parties involved.
This approach involves customers' direct interaction with a product or service, leading to increased participation in co-creation, greater engagement, and improved communication throughout every phase (Bezova & Azara, 2021). The emergence of value co-creation has highlighted the significance of consumers in the process of value creation, offering a fresh viewpoint for comprehending value generation in supply chains (Wan el al. Advancements in the Internet, big data, and various other technologies have further facilitated the adoption of value co-creation practices in supply chain contexts (Kakhki & Gargeya, 2019). This shift has notably influenced numerous industry sectors (Zhang & Meng, 2021).
The conventional approach of independent value creation has become less effective due to the growing need for collaboration among members of the supply chain. As a result, value co-creation has emerged as a key focus in supply chain research, offering a novel perspective for understanding the process of value creation within supply chains (Al- Omoush et al. Inherited from the existing literature, this study proposes the concept of "Suppliers - Consumers Value Co-Creation in the Supply Chain on the basis of Supply 5 Chain Transparency and Traceability" is a concept where both suppliers and consumers collaboratively participate in creating value, supported by clear transparency and traceability in supply chain operations. This process involves consumers more directly in the production and consumption stages, leveraging transparent information and traceable processes to enhance their trust and commitment towards products and/or suppliers fulfilling their demands on SCTT.
It moves beyond traditional, isolated value creation by integrating consumers into the supply chain, thereby co-creating brand value and mutual benefits. Enabled by advancements in technology, this approach fosters stronger connections between suppliers and consumers, leading to improved product quality and consumer satisfaction. The mechanism behind this concept could be explained based upon Mankiw's (2020) principle of economics “People Face Trade-offs” - in order to obtain something desired, individuals or entities often have to give up something else. In this context, both suppliers and consumers are subject to significant trade-offs.
Suppliers investing in SCTT face trade-offs between immediate costs, like upgrading technology and training staff, and long-term gains such as increased consumer trust and market share. These investments may lead to higher operational costs but are expected to yield benefits like brand loyalty and reduced supply chain risks. Consumers, on the other hand, weigh the higher costs of products from transparent supply chains against the benefits of ethical consumption and quality assurance. This trade-off can enhance their satisfaction and align with sustainability values.
Both suppliers and consumers make these decisions based on a balance of costs and benefits, reflecting the intricate nature of economic decision-making influenced by personal values and market dynamics. Supply chain transparency, traceability and trust - commitment relationship with the suppliers Transparency is characterized by the provision and accessibility of information to all parties in the supply chain (Francisco & Swanson, 2018). Additionally, Bai and 6 Sarkis (2020) describe Transparency as the disclosure of comprehensive and precise information regarding operations and products, covering aspects like their origin, production processes, costs, and logistics. The essence of Transparency lies in the validity and accuracy of the information shared, going beyond mere completeness or understandability (Schnackenberg & Tomlinson, 2016).
Schnackenberg et al. (2021) identify three key dimensions of Transparency: Disclosure, Accuracy, and Clarity.