Emerging market characteristics and supply network adjustments in internationalising food supply chains

The effect of emerging market characteristics on supply network design is explored through case studies involving international food manufacturers entering emerging markets. Our findings suggest that institutions, and primary and supportive actors may often be considered as potential constraints, and appear to have a dominant role in determining the adjustment of supply network's structural attributes. A supply network adjustment categorisation emerges from the results, as emerging market characteristics may require adjustments in the company's supply network configuration, practices and policies in terms of: (1) network strategy and position; (2) changes to firm boundaries; (3) changes to product mobility; and (4) changes to geographical configuration. These adjustments may go through a life cycle of initial home country convergent practice as firms attempt to roll out established practices, later divergent strategies that adapt to emerging market contexts, and finally more convergence as contexts develop. From a managerial perspective, our findings suggest that a proactive network design approach is needed, requiring analysis of market characteristics and exploring potential supply network adjustments under four configuration dimensions. Our research also enables policy makers to better understand the implications of market characteristics to internationalising firms. (C) 2013 Elsevier B.V. All rights reserved.