Agricultural Marketing System for Sustainable Dairy Industry with Triple Bottom Line Framework in Bangladesh

Abstract

Sustainable development of dairy industry is an international focal point of institutions like the United Nations (UN) and its member countries. Today, the dairy industry is facing a list of problems due to different types of uncertainties and interruptions all over the world. The dairy farms developed alternative approaches to enhance the ability to manage uncertain situations and fails to satisfy the stakeholders need in a sustainable manner. In agriculture -based industry, this is very important to develop a suitable marketing system to improve performances, establish a suitable governance approach and reduce the probable misfortunes that have disrupted the road of the sustainable performance (SUP) of the dairy industry in the world. Similarly, the dairy industry in Bangladesh requires exploring alternative resources as well as immediate actions for reducing the uncertainties to overcome adversities. Inability to establish an appropriate agricultural marketing system immediately may be the cause of financial loss, the social and environmental imbalance that have made the task of sustainable performance (SUP) of the dairy industry a difficult proposition. There are some limitations of the present literature regarding the agricultural marketing system, namely is uncertainty, sustainability and lack of an empirically tested model of agricultural marketing systems to be adopted for the long-term sustainable performance (SUP) of the dairy industry in Bangladesh. These research gaps highly encouraged me to conduct this research work to develop a model of agricultural marketing channel relationship (AMCR) for sustainable performance (SUP) applicable in the dairy industry in Bangladesh after extensive review of earlier studies in this area. Reviewing the earlier research works the present research model was evaluated in the light of two theories, namely social exchange theory (SET) and stakeholder theory (ST). Moreover, the key constructs and hypothesized relationships are justified, based on those theories while, constructs and variables of the proposed research are justified and validated by an exhaustive field survey. This research has applied a ‘mixed method’ which has incorporated both qualitative and quantitative approach. In the qualitative research approach, this study used semi-structured interview procedure, in which the field study data were collected from 19 marketing channel decision makers, particularly farmers (dairy farms), milk processing companies (formal buyers) in Bangladesh. Data collected from field survey (qualitative data) have been analyzed using the content analysis technique. According to the outcome of the content analysis, a field study model was developed. Then, based on the comparison of the conceptual model and the field study model, a comprehensive and final research model was developed. In addition, the field study explored a new dimension namely, political uncertainty in the context of the dairy industry in Bangladesh. Finally, qualitative research approach has been combined with the view of the mixed method. In addition, in quantitative phase, total 320 usable responses were attained from the dairy farmers in Bangladesh. Samples were selected through using the random sampling technique. Those collected data were analysed using partial least squares (PLS) -based structural equation modelling (SEM) technique. Furthermore, the findings of the quantitative analysis explored that the key constructs agricultural marketing channel relationship (AMCR) reflected by several dimensions like trust, commitment, satisfaction, power, cooperation, and communication. In addition, the construct sustainability governance (SUG) is reflected through several dimensions like business sustainability, integration, governance power and financial control. As well as, environmental uncertainty (EU) was determined by several dimensions like demand uncertainty, supply uncertainty, competitor uncertainty, climate uncertainty and political uncertainty. The outcome of the study was also critically examined through measuring the agricultural marketing relationship (AMCR) with sustainability governance (SUG) and sustainable performance (SUP) for ensuring long-term sustainable dairy industry, i.e. economic sustainability, social sustainability, and environmental sustainability in the context of Bangladesh. This study discovered that sustainability governance has been partially mediating the relationship between the agricultural marketing channel relationship (AMCR) and sustainable performance (SUP). This finding also substantiated that sustainability governance (SUG) is another essential construct for supporting the way of sustainable performance (SUP) in the context of dairy industry in Bangladesh. In addition to this, this research investigated that insignificant role of moderating construct the environmental uncertainty (EU) on the sustainable performance (SUP) in the context of the dairy industry in Bangladesh. These results have supported by the earlier studies and replicated the role of the agricultural marketing channel relationship (AMCR) and sustainability governance (SUP) for reducing uncertainties. Therefore, the present research has both theoretical and managerial implications. The findings brought out by this research have a distinctive contribution to the literature. Hence, this study supplements the existing branch of knowledge of agricultural marketing systems, particularly agricultural marketing channel relationship (AMCR), sustainability governance (SUG), and sustainable performance (SUP).q The constructs, dimensions and items dealt with in this research may help directly the stakeholders and national as well as international decision makers to identify and measure the agricultural marketing channel relationship (AMCR) and sustainability governance (SUG) and to overcome the difficulties associated with unforeseen and interruptive factors. It may also assist the managers in ensuring the economic sustainability, social sustainability and environmental sustainability by developing a new approach to agricultural marketing systems like agricultural relationship marketing and sustainability governance. Finally, this study makes the task of the managers simple and practicable in building agricultural marketing channel relationship and sustainability governance and sustainable dairy industry in Bangladesh. Besides, the implications of this study may be useful to the other countries and other industries as well. This research also recommended some specific guidelines to the future researchers on the basis of the major difficulties faced by them.