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Supply chain collaboration. Analysis of the relationship between the lead company and its contracted farmers in the organic and fair trade cotton supply chain in Egypt
Abstract
The aim of this paper is to propose an instrument to measure the extent of collaboration between garment producers and contracted farmers within an organic and fair-trade cotton supply chain based on the conceptual framework proposed by Simatupang and Sridharan’s (2005) “collaboration index”. The index incorporates collaborative practices in three main dimensions: information sharing, decision synchronization and incentive alignment. The study has been carried out in Egypt and focuses on the Egyptian organic and fair-trade garment supply chain, led by “Naturtex” which belongs to the holding “Sekem”. Qualitative and quantitative surveys were conducted. The qualitative survey, based on documentary analysis and semi-structured interviews, was conducted with the ”Sekem” company managers to explore the company business relations with its contracted farmers.
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As regards the quantitative survey, the contracted farmers (16 farmers who account for 64% of the total) were interviewed through a structured questionnaire to assess the validity and reliability of the newly modified instrument; furthermore, a factor analysis was performed to this end. Results show that: (i) the study has developed a reliable and valid instrument to measure the extent of collaboration between the company and its contracted farmers; (ii) The company “Naturtex” has an average level of collaboration with its contracted cotton farmers.
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