Transition to a sustainable food supply chain during disruptions: A study on the Brazilian food companies in the Covid-19 era

Abstract

The COVID-19 pandemic has brought negative impacts to global supply chains, in particular to the agricultural sector. Although these companies have been developing programs to mitigate the impacts caused by COVID-19, researchers have been worried about a possible weakening of the adoption of sustainable initiatives due to a focus on dealing with the consequences of the pandemic. Grounded on the Resource Orchestration Theory, the goal of this study was to assess the effects of the COVID-19 outbreak on sustainable (environmental, social, and economic) performance in the context of agri-food supply chains. To do so, a questionnaire survey was used to collect data from 349 different medium and large agri-food companies in Brazil. Data were analyzed using Structural Equation Modeling-Partial Least Squares technique. This study has found out that, under the impacts arising from COVID-19 pandemic (1) supply management and transportation and logistics management had a positive impact on food supply chains' sustainable performance; (2) the effects of relationship management and supply chain wide impact management were found to be negative on sustainable performance; and (3) the effects of demand and production management on sustainable performance were not considered significant. We propose a framework that clearly represents the relationship between the disrupted supply chain areas and sustainable performance through the development of orchestration capabilities. By knowing which kinds of impacts produce the most significant effects on sustainable performance, policy makers and managers will be able to make decisions and take actions to avoid negative effects and to improve firms’ sustainable performance.