Are supply-chain relationships more influenced by buyer-supplier relationships or the business environment of the country itself? Evidence from the ‘China-Australia’ trading relationship

In doing business with China, poor supply chain performance is reported as being caused by either poor relationships between firms in China or the business environment in which firms in China have to operate. This research paper explores the relative importance of these two factors for food supply chains from Australia to China. Results are based on surveys of 84 importers, wholesalers and retailers in China and 22 Australian exporters and wholesalers. They show that the country itself had a greater influence than firm to firm relationships. Firms exporting food to China should therefore keep supply chains as short as possible to minimize the uncertainties associated with the business environment.