Determinants of information asymmetry in agri-food supply chains

PurposeWith its presence, which can create inefficiencies, uncertainties and risks, information asymmetry poses a significant challenge to successfully managing the agri-food supply chain (AFSC). Understanding the variables that influence information asymmetry is crucial for devising more effective strategies to mitigate it. This study, therefore, explores the variables that influence information asymmetry in the AFSC.Design/methodology/approachA qualitative analysis was conducted, relying on semi-structured interviews with 17 experts representing different actors in the AFSC (e.g. seed producers, retailers, etc.) in Germany. The collected data was analysed using the GABEK® method.FindingsThe study confirms that the influencing variables derived from the existing theory, such as price performance, digitalisation, environmental, process and quality measures, contribute to information asymmetry. It further reveals new variables that associate with information asymmetry, including documentation requirements, increasing regulation, consumer behaviour, incorrect data within the company as well as crises, political conflicts and supplier–buyer conflicts. Furthermore, the study shows that supply chain actors counteract asymmetry by focusing on social behaviour and monitoring suppliers through key performance indicators, employees and social aspects.Research limitations/implicationsThe study was limited to the universal influence of the variables on information asymmetry in the AFSC, making the magnitude of the influence and its context-specific nature unexplained.Originality/valueThis study is one of the very few that examines information asymmetry across the AFSC from the perspective of different actors, providing a more overarching and deeper understanding of information asymmetry.