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Resource Dependence: Evidence From An FMCG Industry

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

Resource Dependence: Evidence from an


FMCG Industry
Symeon Mandrinos
Swinburne University of Technology

Abstract:- This study focuses on Resource Dependence In choosing an industry context to study the RDT, we
Theory (RDT) in relation to the export processes of firms in decided to focus on FMCG designation of origin firms. There
the Fast-moving Consumer Goods (FMCG), Protected were several reasons for this decision. Firstly, from a practical
Designation of Origin (PDO) context. Our examination perspective the designation of origin industry is a strong force
reveals that the RDT showcases a number of elements coming to the fore and it plays a critical role within the
including firms essential call for survival; their need to European Union Institution and its economy. Secondly, owing
acquire resources; their obligation to increase their level of to highly economic and social contribution characteristics, the
reliance on the cooperative players and work towards a designation of origin industry offers several particularities
degree of reciprocal dependence. However, in the PDO which impact on firms’ exports activities. Thirdly, the
context, which represents a significant influence, the level of significance of the investigated forces, such as natural resources
reliance is sidelined. Our research supports international (raw material) is supranational; they can become evident in
business for future research on the PDO context. This every country. Likewise, production inputs may differ greatly
empirical study has an industry related focus and thus from region to region and therefore, countries can differ
generates practical insights that are also discussed in this noticeably in terms of their natural endowments, their
manuscript. preferences, and their intensity in particular industries
(Gandolfo, 1998; Porter, 2008; Ricardo, 1817). To this effect,
Keywords:- European Union, Fast-Moving Consumer Goods, the individual environment of firms and countries aptly
Protected Designation of Origin, Resource Dependence illustrates how dependence on natural resources can be very
Theory. unevenly dispersed geographically (Tong et al., 2008).
Designation of origin products are under the auspice of the
I. INTRODUCTION European Intellectual Property rights regulation and firms
cannot apply from offshore, or outsource practices. These
This study makes a new contribution by theorising some products have been part of the lifestyle, culture and tradition of
differences and conditions in resource dependence settings. Our all the European countries and regions while playing a key role
research delves into the functional relationship of RDT and as a driver for economic growth, innovation, employment and
explores the connections that are unique to the international social integration (Alonso & Bressan, 2014; E.C., 2014).
context, which in turn has an impact upon the internal processes According to Knight et al. (2007) the use of Protected
of firms and the speed of the export process. It describes a Designation of Origin labels by food companies is a mechanism
particularly suitable relationship between resource (Aldrich & to improve trust and to instill confidence in the quality of
Pfeffer, 1976; Drees & Heugens, 2013) and export traditional production techniques. Hence, these firms provide
shortcomings on the other, facilitating an understanding of how the main vehicle for economic growth among private
firms manage and engage their environment before they go companies in most involved countries (Hope et al., 2011;
abroad. Knight et al., 2007). Similarly, an enormous body of writing on
export literature normatively suggests the presence of
According to scholars, market’s stakeholders actions alternative firm specific practices, as a result of varying
essential component is the control of vital resources (Hessels & environmental conditions. Nevertheless, few of these
Terjesen, 2010; Ulrich & Barney, 1984), causing the reciprocal conditions have been empirically investigated within the field
effect of uncertainty and interdependence (Pfeffer & Salancik, of FMCG export development (Francis, 2006; Knight et al.,
2003). Particular pressures to control resources lead firms to be 2007; Sakellariou et al., 2014). Indeed, the current empirical
guided by legitimate regulations (Judge et al., 2011; Katsikeas contribution towards the investigation of business practices in
& Piercy, 1993), for instance, standard operating procedures, the FMCG designation of origin industry, fails to explore a
designation of origin certification, intellectual property rights, theoretical background. Thus, describing the resource of
etc., (E.C, 2012; E.C., 2006; Knight et al., 2007). dependence it seems to be instrumental.

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

There is a core objective in this study: to investigate the As firms are not autonomously interdependent, conditions
interaction of RDT within a framework that has attracted little arise which lead to uncertainty concerning their survival. To
scholarly attention: the FMCG designation of origin context. avoid risk adversity and manage interdependencies, firms
Our findings exhibit a diverse relationship. The designation of develop new platforms of dependence, with a resulting effect
origin regulation is part of the European Agriculture and Rural on their behaviour (Scott & Davis, 2007). Their
Development Policy. The policy was made to maintain both the interdependence obviously relies not only on employing a sole-
domestic and export competitiveness of designation of origin source supplier, but also in engaging alternative solutions,
firms. Its primary concerns relate to the issues of norms and which is a standard practice in manufacturing. Hence firms use
legitimacy, rural development, the desire for regional economic alliances between other firms in order to pursue the common
growth and the improvement of products and services, in terms goal of sharing resources and knowledge (Scott & Davis, 2007)
of quality and quantity. But the interaction between resource with key suppliers and customers (Pfeffer & Salancik, 2003).
actors (the providers of raw material) and the main producers,
leads stakeholders into a vortex of inconsistency, where a In keeping with the above, the location of suppliers with
robust relationship is sidelined. available resources, influence and stimulate managers to build
stronger export relationships (Wilkinson et al., 2000), and, in
The structure of the paper is as follows: first, we outline cases where firms have access to economical domestic
the theoretical background. This is followed by a detailed resources, help them to drive dynamic performance and exceed
description of our research methodology. Subsequently, we the competition (Snowdon & Stonehouse, 2006). Home market
present evidence supporting the theoretical frameworks. The industry conditions benefit the recipient firms when financial
discussion section integrates our findings with the existing and raw material resources are easily accessible and widely
literature, enhancing the potential insights and theoretical available (Porter, 1998; Porter, 1990). Likewise, when
contributions of this study. Finally, the concluding section intellectual property right protection and favourable
addresses the study's limitations and discusses the implications governmental conditions exist (Hessels & Terjesen, 2010),
for future research and business practitioners. firms are able to access strong relationships, with industry
resource interlocks, and develop their competences. Yet, firms
II. LITERATURE REVIEW also try to reduce dependence and power held over them, while
aiming to increase their own bargaining power over others (Elg,
 Resource Dependence 2000). An issue that holds a strong influence on their specific
It is clear that “firms are not islands, they are not self- external resources, is the industry that firms operate within,
efficient” (Wilkinson et al., 2000: 276). Market pressures for affecting not only the industry’s attractiveness (Kamasak,
expansion necessitate the possession of core competencies, 2011) but also shaping the firms’ export prosperity (Porter,
such as access to external resources (Pfeffer & Salancik, 2003). 2004, 2008).
Resource Dependence Theory (RDT) focuses on how firms can
secure necessary resources and highlights how scarcity drives Raw material is the foundation of designation of origin
the use of alternative resources (Aldrich & Pfeffer, 1976; Drees products, according to focal specification conditions. Raw
& Heugens, 2013). In contrast, firms with abundant resources material is enshrined in international business literature,
exhibit the least dependence on others (Pfeffer & Salancik, whereby it is deemed the primary factor in designating whether
1978). As RDT exemplifies, firms rely on other market actors a country’s production will excel over other foreign
to obtain resources (Hessels & Terjesen, 2010; Zigan, 2013). destinations at both a national and international level (Porter,
They seek strategies to regain control over their environment 1990). Similarly, Zigan (2013) suggests that firms perform
and manage resource dependencies efficiently (Pfeffer & better when raw material resources fit in well both with the
Salancik, 2003). However, the theory has not always produced inner and outer competitive environment. In this respect, firms
consistent results (Casciaro & Piskorski, 2005; Drees & develop an economic value in relation to their rivals due to the
Heugens, 2013). For instance, RDT characterizes the impact of raw materials on managing production and exports.
interaction between market participants and the external Because of its legal standards, the raw material employed in
environment as a struggle for influence, while also suggesting protected designation of origin products share a range of
that managers aim to reduce environmental uncertainty and characteristics, including valuableness, rarity and undisputed
dependence on critical resources (Pfeffer & Salancik, 2003). originality. These protect against substitutes, and run counter to
the incompetence of competitors who may try to acquire the
same resources, but in the end, as copycats, try to substitute
them (El-Shafeey & Trott, 2014; Porter, 2004).

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

III. METHODOLOGY The use of small firms allowed us to rethink our main
objectives, and to better examine the FMCG context. We
Given the paucity of research on the FMCG concept, this ascertained some core reasons for not using small firms for
study is exploratory by nature, adopting an interpretive sampling and grounded investigations. To clarify, data
approach and qualitative techniques, and employing a case collection from small firms was not a straightforward process
study design. Qualitative research, according to Bruton et al. as companies’ respondents were very busy in making business
(2011), is not a novel phenomenon in international business. It and consequently, due to time limitations, they gave laconic,
seems to be the most practical method for investigating tightfisted answers. To remedy the problem, we attempted to
complex contexts, enabling a rich view of the diversity in conduct interviews designed to meet the respondents’
different countries and industries (Knight et al., 2007). convenience. Nevertheless, the small firms were highly
Qualitative research and international business coexist, influenced by the financial conditions both domestically and
especially in cases where there is a new and emerging globally (Poulis, 2011), and were secretive when it came to
phenomenon (Bruton et al., 2011). According to Yin (2009), a sharing important particularities. Similarly, small firms did not
case study is an empirical investigation, examining a current have an export department, and were indirectly engaged with
phenomenon in-depth within a real-life context, especially exports via market agents, in stark contrast to medium and large
when the boundaries between the phenomenon and its context enterprises. Hence, following the preliminary investigation, the
are not apparent. Similarly, Gerring (2004) highlights how a sampling logic was changed from small and medium businesses
case study can tackle subjects where accessible knowledge is in to medium and large units of analysis. The aim of our project
essence flawed or imperfect. In our context we follow a was to select information rich cases, in order to illuminate our
qualitative, iterative and, multidimensional investigation research dimensions (Gerring, 2004).
analysis (Creswell, 2009; Crotty, 2003). Our indicative method
serves as a conduit between theory and empirics, connecting For our core investigation, we selected several medium
them both via an iterative procedure of scientific improvement and large enterprises from the Hellenic Milk Organisation
(Martin, 2013). Our inductive approach invites inferences directory. Initially, thirteen firms agreed to participate in the
arising from narrative and iterative exploration, offering a study, but ultimately only nine provided sample lists of
platform for the analysis of evidence. Because of the nature of applicants. To prevent bias, the senior management of the
our methodological approach, different tools for investigation participating firms was instructed to select the applicants from
were used, such as interviews, direct observation and the sample lists, aligning with Patton's (1990) concept of
documents (Marshall & Rossman, 1999; Silverman, 2005; Yin, purposeful sampling. We conducted interviews with diverse
2009). individuals from these firms, including one Owner; eleven
Export Managers/Directors; six Export Area Managers; three
According to Knight et al. (2007) when making assertions Export Assistants; and one Marketing Manager. Additionally,
following in-depth interviews, researchers tend to ameliorate three of the key respondents were general managers of
the richness of their findings, a phenomenon unlikely to occur subsidiaries in foreign countries (USA, Romania, Bulgaria)
with indirect questionnaires. In this study, in-depth face-to-face who had previously served as export managers in Greece. All
interviews were conducted using a convenience sample of interviews yielded valuable personal and anecdotal insights.
fifteen firms; six for the pilot study and nine for the main
exploration. Initially, we explored our phenomenon via A total of twenty-five interviews were conducted at the
preliminary research with pilot interviews and cases. These company premises of the respondents. During most of these
were chosen from a secondary database, the Hellenic Milk sessions, we took handwritten notes, and on two occasions, we
Organisation. Three small and three medium types of firms shared all written memos with the respondents. The interviews
were used, owing to the fact that the majority of the European were conducted in the native Greek language to prevent any
Union FMCG sector is made up of SMEs, and therefore, our issues related to language barriers (Krave & Brinkmann, 2008)
data must be capable of representing and speaking for their and lasted between forty to eighty minutes (Bernard, 2000;
business acumen. We carried out semi-structured interviews Patton, 2002). Although subject to the respondents’ discretion,
with upper managers (Saunders et al., 2007; Welch et al., 2002), all interviews followed an interview protocol guide that covered
two Owners, two Export Managers and one Export Agent, and the main areas of enquiry. We assured the interviewees of their
one Sales Director liable for learning, solving and deciphering anonymity and guaranteed that no information would be
market signals. Interviews were conducted in the Greek disclosed to other participants within their companies. A list of
language to avoid language barriers and then translated sample questions was provided to the respondents in advance.
verbatim back to English. In instances where it was challenging to meet the respondents
in person due to business commitments or because their
subsidiaries were located abroad, interviews were conducted
and recorded virtually via Skype. All interviews were recorded,
transcribed verbatim, translated, and subsequently analysed.

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

Table 1. General Categorisation

Cases Enterprise category Company Status Location of Interview

C1 Medium-sized Family Head Office

C2 Large Corporation Head Office/Virtually

C3 Medium-sized Corporation Head Office/Virtually

C4 Large Family Head Office

C5 Large Corporation Head Office

C6 Medium-sized Corporation Head Office/Virtually

C7 Large Corporation Head Office/Virtually

C8 Medium-sized Family Head Office

C9 Large Corporation Head Office/Virtually

The transcription of the interviews yielded nearly five underlying changes (Morgan, 1987). Morgan (1987)
hundred pages of data. We utilised a software program called emphasises that some relevant behaviour or external conditions
Express Scribe for both transcription and the cleaning of are always available for further observation.
erroneous translation elements (Robson, 2011). Subsequently,
we employed Computer Assisted Qualitative Data Analysis We collected administrative documents from two cases
Software (CAQDAS) for coding, specifically using the NVivo and reviewed firm presentations and websites for most of our
application and Excel for data management (Mason, 2008). investigated cases. Direct observations were conducted during
Quotes from the transcriptions were selected based on our interviews held inside offices and, in two instances, within the
research criteria to highlight relevant meanings. We developed companies' production facilities. These observations provided
nodes and family nodes to facilitate pattern matching, additional contextual data on how exports are stored in factory
employing both open and axial coding techniques (Gerring, repositories and demonstrated the process of preparing orders
2004; Saldana, 2009). Axial coding involves establishing for distribution to foreign destinations. The collected data was
relationships between concepts or categories, while open interpreted through evidence in the form of quotations from the
coding involves breaking down the collected data into segments field notes. By employing cross-pattern matching, we
and examining its various components. These two coding established internal coherence within the study and determined
methods are interconnected, allowing us to identify valuable how our systematically connected concepts (Riege, 2003) could
insights that were not evident at the start of the research be generalised to other contexts (Miles & Huberman, 1994). To
(Saldana, 2009). ensure credibility, we adhered to a rigorous case study protocol.
We maintained a case study database according to best practice
Throughout our coding process, we leveraged the principles to minimise errors and biases in our research (Yin,
significant contributions of Miles and Huberman's work on the 2009).
mega-matrix (1994). They noted that formats can be as varied
as the imagination of the analyst, with the mega-matrix IV. FINDINGS AND CRITICAL VIEWS
technique being crucial for qualitative data analysis (Miles &
Huberman, 1994). While matrices can be intensive, this method For PDO producers working in the FMCG industry,
enabled us to isolate important responses and provided an participants’ responses endorsed the fact that raw material was
understanding of the flow, context, and connections of events. a vital production component, but their responses also exhibited
Subsequently, we created ‘summary tables’ for each factor to a few other issues and inconsistencies. It was apparent that raw
facilitate the comparison and analysis of our data. Additionally, material advanced payments and the maturation period of
we utilised multiple sources of evidence to enhance the product inventories, increases firms’ production cost while
credibility and validation of our results. Interviews were causing relationship disturbance between producers and
triangulated with documents and direct observations to ensure farmers. Risk adversity creates malpractice conditions, where
a more comprehensive examination (Gibbs, 2007; Yin, 2009). many FMCG producers deploy practices outside the realms of
It is important to remember that unobserved events are not PDO regulations by using alternative raw material to minimise
necessarily unrelated, nor do they imply an absence of production costs and improve their export competitiveness

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

against national rivals. According to one respondent, these upcoming season. However, without international expansion,
practices are: the availability of raw materials tends to diminish, leading to
payment insolvency from producers. This reduces employment
“A PDO product is determined by EU international incentives for farmers, prompting some to leave the profession.
standard, namely the addition of cow's milk in the product feta As a result, demand decreases and prices increase to
is prohibited. And yet there are firms using cow’s milk” (USA unsustainable levels for both producers and farmers. Similarly,
Market Director) the international recognition of PDO (Protected Designation of
Origin) products is closely tied to signed contracts and export
quantities. Consequently, insufficient raw material availability
On the other hand, raw material liquidity and financial due to market shortcomings forces firms to sign new trade
hardships lead farmers to abandon their profession and agreements to secure their position in the market.
similarly reduces production:
V. DISCUSSION REMARKS
“…if we will not open product’s pathway abroad, raw
material will tend to decrease […] We should not have Our findings suggest that although the dependency level
expectations for sheep and goat’s milk to be for free” (General is higher, due to EU regulation concerning, product
Director/ Export Consultant) specification and origin, this interplay between producers and
specialised farmers reveals discrepancies. Issues concerning
“… the current year, the sheep and goat’s milk price fall raw material, production and final product interactions, bring
20% when at the same time production coefficients have stakeholders into the vortex of inconsistency where a robust
increased 30%. What does this mean? Final product will be relationship between farmers and final producers is sidelined.
reduced final product’s quantity volume” (General This insight stems from our findings, as designation of origin
Director/Export Consultant) producers fall victim not only to host competition but also to
home rivalry malpractice.
In recent years, firms have delayed payments to farmers
for raw materials, citing suppressed borrowing of capital due to Designation of origin firms find themselves between
constraints from foreign key accounts, market payments, and Scylla and Charybdis, an inescapable threat to passing firms, as
financial institutions. The export prices and payments of PDO substitute competition rises from both Home and Host markets.
firms are largely determined by key account stakeholders. As a According to respondents, certified firms adopt ‘half-hearted’
result, producers approach banks to cover time lags, ensuring production practices, leaving ground for unclear economic and
the protection of pre-negotiated contracts and other price- moral consequences (Judge et al., 2011). Market-exchange
influencing factors. These producers operate within a transactions also impose cost pressures on exports, and since
production window of just four months each year, during which malpractice transactions are also taking place outside legitimate
they must also store and sell their products for the remaining guideline, the challenges of exporting have pushed production
months. During this four-month period, raw material contracts firms towards the exploitation of raw material producers (Pinto
must be settled as well. However, our findings revealed the et al., 2008). On that basis, firms’ payment costs to farmers have
existence of alternative and varied practices beyond this emerged as a core inhibitory component.
approach:
According to transaction cost theory, cost is permanently
This moment there are unpaid milk producers from July, present (Zaibet et al., 2005) and it plays a prominent role in
from the month July, and today is December […] Product international business. Firms exist because the cost of
produced for four months has to be paid. You pay, store the organising certain activities is lower in comparison to
product and you wait to sell. It’s obvious, without financial competitors, and they survive because they are capable of
support you cannot stand in this arena” (General minimising their transaction costs more efficiently (Chen,
Director/Export Consultant). 2010; Pan et al., 2014). Our goal in this paper is not to
conceptualise our study based on transaction cost analysis,
“…a firm should be economically viable to have good although it is a valuable underpinning for the research. From
cash and to produce feta needs to become slightly a ‘bank’ our perspective, we have tried instead to explain
because the milk you use for production must be pre-paid to comprehensively what lies beneath our findings, and this has
farmers in advance” (Export Manager). influenced our conceptualisation.

Logistic costs for firms are on the rise, while a reduction For designation of origin firms cost rises as a result of
in both domestic and international consumption impacts cash labour intensive production and expensive raw material which,
flow, necessitating a longer time for recovery. Firms typically according to scholars, both exhibit negative consequences on
store their products in repositories while waiting for sales to financial resources and trade efficacy (Mechemache &
liquidate stock and renew cash flow to pay farmers for the Chaaban, 2010). Firms, according to Li et al., (2011), get loans

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

to support their trade efficacy. These financial loan resources the country’s favourable production environment. Raw
offer a fundamental reserve and assist in firms’ decisions to materials are crucial to the production process, and a country
establish export processes, as recipients may choose or refuse abundant in these resources is well-positioned for export
export decisions subject to the expected cost of a loan (Li et al., opportunities, which in turn, positively impacts the national
2011). Our findings show that firms’ production is vulnerable economy. Greece, the country studied in this research, is the
to financial support. Financial institutions, and especially largest producer of raw materials within the EU and one of the
banks, are the recipients of liability, and thereby influence the largest globally (Eurostat, 2012). Furthermore, designation of
retention of payments to farmers. Banks increase producers’ origin firms is likely to engage in additional industry-specific
financial distress, inhibit the export process, and make both transactions. For these firms, there are no alternatives for
parties, farmer and producer victims of retrograde actions. acquiring authentic resources from foreign sources, as the
product’s unique characteristics are inherently tied to its
Our findings also promote the idea that other market geographical origin and use of local raw materials.
effects come to the fore (Gande et al., 2009). These channel a Consequently, the reliance on resource exchange and
detrimental causality between raw material farmers, and the interdependence among stakeholders could enhance exports
producers serving as the main recipients. For instance, we have and bolster the industry’s future prospects. Hence, while firms
established contradictory insights to RDT conventional attempt to cut costs and achieve positive financial results by
wisdom, which states that for firms to survive they need to economising on raw materials, we propose that
obtain resources and increase dependence with cooperative
players, on a reciprocal level. This research in contrast reveals  Proposition
an odd arrangement for both SMEs and large enterprises that A Protected Designation of Origin firm is not necessarily
choose to employ vague partnership methods, alongside their resource dependent on specialised farmers due to the interplay
traditional expectations to maintain strong ties with certified between resources, main recipients and home rivalry, i.e. a
raw material farmers. Building on RDT, we could expect both robust relationship between farmers and final producers is
parties to benefit from the country’s favourable production sidelined.
environment. To clarify, as raw materials are important to the
production process, a country with abundant resources has VI. CONTRIBUTION AND IMPLICATIONS
strong export opportunities to other countries, and therefore the
success of the country's economy, can be determined by the This study offers insights in relation to a specific context,
amount of resources the country has within its own borders. The and delineates some boundary conditions. More specifically, it
country studied in this research, Greece, is the biggest producer contributes to the understanding of PDO firms, a field which is
of raw material in the European Union, and one of the largest still embryonic despite its considerable value, and which the
in the world (Eurostat, 2012). We could also expect designation international business literature has largely neglected to
of origin firms to perform additional transactions inside the investigate. Our investigation illustrates non-documented
industry. For those firms, there are no alternatives to acquire outcomes. Although many aspects have been addressed in other
authentic resources from foreign locations, due to the fact that contexts, a comprehensive approach has still not been
the product’s specific characteristics are linked with the developed. One suggested avenue for contributions in particular
geographical origin and raw material use. Consequently, the is what determining forces can improve export process
tendency of resource exchange and dependence between assessment and export development, and therefore, adjust both
stakeholders could boost exports, and help to improve the parties’ incentives accordingly. A comprehensive explanation
industry’s future perspectives. Yet, it seems that while firms are would contribute to exports and to firms' learning; the context
trying to economise and yield positive financial results from the explored here is therefore of great importance. In brief, several
cost of raw material, they are actually contributing to a empirical implications can be derived from our findings. This
narrowing of the protected designation of origin stakeholders’ study suggests that in the international market environment
export boundaries. there are a lot of discrepancies and discontinuities, causing
further market modifications. The case of designation of origin
Our findings also highlight additional market effects firms and the RDT proposes that raw material, production and
(Gande et al., 2009). These effects reveal a detrimental causal final product interaction brings stakeholders into the vortex of
relationship between raw material farmers and producers, who inconsistency that exists between farmers and final producers.
are the main recipients. Contrary to the conventional wisdom of
RDT, which posits that firms must obtain resources and Our investigation presents several limitations that should
increase their dependence on cooperative partners to survive, be taken into account when interpreting its conclusions. The
this research uncovers an unusual arrangement. Both SMEs and first limitation pertains to the sample, raising the question of
large enterprises tend to employ ambiguous partnership whether the study’s outcomes can be generalised to other
methods, while simultaneously striving to maintain strong countries. Future research should consider collecting diverse
relationships with certified raw material farmers. Building on types of data from both EU and non-EU countries to enhance
RDT principles, we would expect both parties to benefit from the generalisability of the findings. Secondly, our study focuses

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Volume 9, Issue 8, August – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24AUG095

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