The agricultural food cold chain (AFCC) is an important player in the food-supply industry, which ensures safe and efficient food distribution with minimal wastage- from farm to table. With the rise in consumer demand in emerging nations, the industry is recently facing challenges on multiple fronts, ranging from environmental and economic costs to social disparities. Some of these concerns include increased energy consumption, high carbon emissions, food wastage, and insufficient wages for employees. This has, therefore, created a growing need to develop sustainable solutions for the AFCC industry. Although there are numerous studies on solutions for developed countries, only a few reports for developing economies exist.
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To bridge this gap, researchers from China and South Korea conducted a “systems” analysis to comprehend the processes that contribute to the agricultural food cold chain ‘ sustainable practices. The team led by Prof. Keun-sik Park, identified and evaluated the critical success factors (CSFs) that drive these practices in China. The study was recently published in Business Strategy and the Environment, and cited the current problems of China’s cold chains. Prof. Park explains the rationale of their study by saying, “The urbanization of China is accelerating the demand for cold chains, which in turn is exacerbating the environmental, cost, and social problems. As a result, we must develop systematic practices that reinforce effective green initiatives.” Research from Chung-Ang University has provided theoretical guidelines for developing sustainable business solutions for China’s AFCC industry.
The researchers executed this study by reviewing and analyzing diverse aspects of sustainability, based on the institutional theory (factors mediating the rules and behavior of organizations), the stakeholder theory (considering individuals affected by the organization), and the triple line model (the social, environmental, and financial impacts of an organization). The team began by conducting literature search, data collection, and interviews, followed by expert evaluation and decision analysis for 58 institutions located in Beijing, China. An ‘Adversarial Interpretation Structure Model’ (AISM) was then used to identify 15 CSFs that contribute to agricultural food cold chain sustainability.
Next, they determined the hierarchical interrelationship between the CSFs and the driving forces that operate. According to the analysis, the crucial drivers consisted of managing stakeholder pressure, strategic positioning, sustainable policy, top management commitment, and sustainable investment. Consistent with previous studies, tackling stakeholder pressure emerged as the most significant factor.