Creating supply-chain effects from sustainable practices: Scaling relationships in agrifood systems

Purpose: Sustainable practices of food production are often pioneered and implemented by hybrid organisations, who bridge profit and sustainability goals and shape their collaborative strategies accordingly. This research investigates how such hybrid organisations manage the scaling relationships with their supply chain to scale the effects of their practices. Design: We frame our initial conceptualisation based on the scaling relationships hybrid organisations build with the wider supply network to achieve scaling effects. Our in-depth evidence from seven cases in the UK agrifood sector shows how these scaling relationships with large retailers (e.g., supermarkets) or with other sustainability-oriented organisations (e.g., independent farm shops) are managed. Findings: Our findings show the different paths for managing scaling relationships, their upstream implications and scaling effects depending on the selected partner. Scaling relationships with large retailers are defined by the retailer’s business terms and are characterised by active supply arrangement with distinct beginnings and endings. Relationships with other sustainability-oriented organisations are explored within the context of a community with shared values, where episodic explorations of active supply arrangements provide a temporary formal frame. Originality: Our contributions arise from identifying the distinct ways hybrid organisations manage scaling relationships with large retailers or other sustainability-oriented organisations. While relationships with large retailers largely mirror existing supply-chain theory, our insights regarding the scaling relationships with other sustainability-oriented organisations indicate a community approach where joint knowledge creation is prioritised over material flows.