Goal achievement in supply chain networks: A study of the Ukrainian agri-food business, vol 64

Taras Gagalyuk

in Studies on the Agricultural and Food Sector in Transition Economies from Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: Three general implications for chain management can be derived from my results: 1. Network-level and firm-level goals must be considered simultaneously within a collective strategy. The collective strategy should address not only the alignment of interests of individual network members but also the alignment of network-level and firm-level goals. Moreover, a collective strategy has to be seen as a plan of actions to achieve network-level and firm-level goals simultaneously. 2. The alignment and the achievement of network-level and firm-level goals must be addressed simultaneously because the acceptable degree of goal consensus by itself does not guarantee goal achievement while the concerted action alone may fail due to goal conflict. 3. The resolution of infrastructural problems in the Ukrainian agri-food business must be set as a network-level goal and pursued by all members of the supply chain network together. Furthermore, the way the chain management concepts can be modified in Ukraine is to make a distinction between a) parity and b) advantage chain management. In the case of parity chain management, the aim of the collective strategy is to gain parity with the competing supply chain networks, e.g. a certain level of quality can be regarded as a competitive necessity. Advantage chain management aims to create longterm enduring competitive advantages by adding strategic elements that are higher than the parity standards. It should be much easier to formulate an integrated and consistent management system with this division.

Date: 2012
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