Vol. 3 No. 1 (2024): The QUEST: Journal of Multidisciplinary Research and Development
Articles

Digital Revolution in Food Entrepreneurship: Perspectives from Select Small and Micro Food Enterprises

  • Pu Yachao,
  • Jet Aquino
Pu Yachao
Nueva Ecija University of Science and Technology
Jet Aquino
Nueva Ecija University of Science and Technology
DOI: https://doi.org/10.60008/thequest.v3i1.171

Published 06/30/2024

Keywords

  • digital technologies,
  • integration,
  • micro and small food enterprises,
  • management and decision making,
  • marketing,
  • production,
  • finance
    • ...More
    Less

How to Cite

Yachao, P., & Aquino, J. (2024). Digital Revolution in Food Entrepreneurship: Perspectives from Select Small and Micro Food Enterprises. The QUEST: Journal of Multidisciplinary Research and Development, 3(1). https://doi.org/10.60008/thequest.v3i1.171

Copyright (c) 2024 The QUEST: Journal of Multidisciplinary Research and Development

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

This study is entitled Digital Technologies and Its Integration In The Operations Of Micro And Small Food Enterprises: Basis For Strategic Plan which intended to describe the profile of the companies namely, Henan Little Jade Foods, The Garden of Clear Fragrance Foods, Tianjin Joint Venture Foods, and Tianjin the EatSmart Way Technology Development Company. These four food enterprises located in Henan and Tianjin, China integrate digital technologies in their business operations. This research aims to provide a description of digital technologies integrated in the operations of micro and small food enterprises as basis for strategic plan. The description of the profile of the four companies dealt with the nature of business, products and services offered, number of years in the business, existing market, platform of distribution, and business or asset size as of 2022.

In addition, this study delves into the use of digital technologies in the business areas of management and decision making, marketing, production/operations and finance. Regarding the integration of digital technologies in small microfood businesses, all respondents strongly agreed on the use of digital technologies in the four main areas of management and decision making, marketing, production/operations and finance. In the area of management and decision making, 98% of the respondents strongly agreed with the following item statements:In the marketing area, 96% of respondents strongly agreed that digital technology "helps to broaden the customer base, pricing, customer trends and future demand forecasting, helps to develop a customer-centered marketing strategy, and helps to build a competitive brand." In the production/operations area, 92% of respondents strongly agreed with the statement that the following items: "facilitates the implementation of more effective risk assessment and risk mitigation, brings innovation to the company, facilitates an effective transition from traditional to modernized production models, improves the efficiency of customer relationship management, and better connects the company to the community." In the area of finance, 93% of respondents felt strongly that digital technology has caused "confusion and struggle due to lack of preparedness on issues such as the digital economy, cyberthreats and attacks, financial management software, and digital investments." In marketing, respondents agreed that digital technology has created "confusion due to loss of control over customer interactions, poorly trained staff, and mistrust among customers." They also agreed that on the production/operations side, digital technology has brought about internal conflicts and difficulties in complying with regulatory policies due to different perspectives on understanding digital". Based on these findings, we propose a strategic plan for food companies to study and adapt. The researcher recommends further research into the potential for micro and small food businesses to participate in a centralized data management system. However, this will require more training for employees to ensure that everyone is up-to-date with the industry's digitalization and in sync with customer platforms. The challenges that food companies face in integrating digital technologies must be examined by top management and employees alike to determine what issues the company must strategically address to ensure sustainability and productivity, which are the ingredients for survival in the world market.

 

Keywords:  digital technologies, integration, micro and small food enterprises, management and decision-making, marketing, production/operations, finance

Full Paper

References

  1. [No cited author]. (2016). Exploratory research design. Accessed 11 September 2023., Available at https://www.smstudy.com/article/exploratory-research-design#:~:text=Exploratory%20research%20design%20is%20concluded,idea%20of%20the%20research%20problem.
  2. [No cited author]. (2023). Technology that has been transforming the food industry. Accessed 14 September 2023., Available at https://adc-us.com/blog/technology-that-has-been-transforming-the-food-industry/
  3. [No cited author]. (2023). What is marketing? The Economic Times. Accessed 11 October 2023., available at https://www.investopedia.com/terms/o/operations-management.asp.
  4. [No cited author]. (2022). Chinese firms call for faster digital transformation in Tianjin amid complexities. The Global Times. Accessed 12 October 2023., Available at https://www.globaltimes.cn/page/202206/1268959.shtml.
  5. Aisyah, K. (2021). Digital transformation in China’s food sector. Accessed 13 September 2023., Available at https://opengovasia.com/digital-transformation-in-chinas-food-sector/
  6. American Society for Quality (ASQ). What is a small business? Accessed 16 September 2023., Available at https://asq.org/quality-resources/small-business.
  7. Boxer, B. (2023). Tianjin, China. Accessed 12 October 2023., Available at https://www.britannica.com/place/Tianjin-China.
  8. Chen, Y., Lai, Q., Li, Y., and Zhang, X., (2021). “Research on development and future potential of healthy food in China.” Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021). Advances in Economics, Business, and Management Research, Vol. 190., 267-275.
  9. China National Intellectual Property Administration (CNIPA). Accessed 13 September 2023., Available at https://english.cnipa.gov.cn/art/2023/7/5/art_2975_186116.html#:~:text=As%20of%20late%202022%2C%20the,significantly%2C%20and%20more%20than%2080%2C000
  10. Claveria, S.J.D., and Mendoza, F.E. (2021). “Micro food enterprise in Sorsogon City: An assessment.” United International Journal for Research and Technology, 2 (7). ISSN:2582-6832.
  11. Emeritus (2023). Business financing definition and meaning. Accessed 11 October 2023., Available at https://emeritus.org/in/learn/business-finance-definition-and-meaning/
  12. Feifan, J. (2022). China resilience: China’s booming digital economy gives a boost to international cooperation. Accessed 16 September 2023., Available at https://eng.yidaiyilu.gov.cn/p/298076.html
  13. Fontanella, C. (2022). Customer base: The ultimate guide for 2023. Accessed 12 December 2023., Available at https://blog.hubspot.com/service/customer-base.
  14. Guo, Z., Bai, L., and Gong, S. (2019). “Government regulations and voluntary certifications in food safety in China: A review.” Trends in Food Science & Technology, Vol. 90, August 2019, Pages 160-165. https://doi.org/10.1016/j.tifs.2019.04.014.
  15. Hayes, A. (2023). What is operations management (OM)? Accessed 11 October 2023., Available at https://www.investopedia.com/terms/o/operations-management.asp.
  16. Hetler, A. (2022). The future of the food industry: Food tech explained.” TechTarget. Accessed 15 December 2023., Available at https://www.techtarget.com/whatis/feature/The-future-of-the-food-industry-Food-tech-explained.
  17. Interesse, G. (2023). China’s data center sector: Industry and regulatory insights. China Briefing. Accessed 21 December 2023., Available at https://www.china-briefing-com/news/chinas-data-center-sector-industry-and-regulatory-insights.
  18. Jones, P. (2022). What makes a strong food brand? Michigan State University. Accessed 15 December 2023., Available at https://www.canr.msu.edu/news/what-makes-a-strong-food-brand.
  19. Klein, E. (n.d.). Interdepartmental communication and its impact on customers. Accessed 12 December 2023., Available at https://www.satrixsolutions.com/blog/interdepartmental-communication-and-its-impact-on-customers.
  20. Kurk, N. (2018). Data privacy and e-commerce: Considerations for the food and beverage industry. Accessed 18 December 2023., Available at https://www.jdsupra.com/legalnews/data-privacy-and-e-commerce-31981/
  21. Langford, L., and Poyourow, C. (2022). What is a food production system? Accessed 11 October 2023., Available at https://study.com/learn/lesson/food-production-system-types-examples.html.
  22. Lupo, L. (2014). The food system of China: The real story. Accessed 12 September 2023., Available at https://www,qualityassurancemag.com/article/qa1214-food-quality-system-china/
  23. Moschella, D., Tamagni, F., and Yu, X. (2018). “Persistent high-growth firms in China’s manufacturing.” Small Business Economics.
  24. Nikolopoulou, K. (2023). What is purposive sampling? Definition and examples. Accessed 16 September 2023., Available at https://www.scribbr.com/methodology/purposive-sampling/
  25. Payne, J. (2022). Why digital transformation in the food industry is imperative and urgent. Accessed 14 September 2023., Available at https://www.aptean.com/en-US/insights/blog/digital-transformation-in-food-industry
  26. Planet Together. (2023). The importance of data analysis in food and beverage manufacturing for a production manager. Accessed 12 December 2023., Available at https://www.planettogether.com/blog/the-importance-of-data-analysis-in-food-and-beverage-manufacturing-for-a-production-manager.
  27. Rouse, M. (2017). Digital revolution. Accessed 12 September, 2023., Available at https://www.techopedia.com/definition/23371/digital-revolution.
  28. Simplilearn. (2023). What is digital business? Overview, concepts, and how to build one. Accessed 16 September 2023., Available at https://www.simplilearn.com/digital-business-article#:~:text=Digitalization%20means%20trasnforming%20any%20business,in%20the%20process%20of%20digitization.
  29. Song, C. (2021). Tianjin Food. Accessed 12 October 2023., Available at https://www.chinahighlights.com/tianjin/food-restaurant.htm.
  30. Swacka-Mokrzycka, J. (2010). “Source of competitive advantage in food industry.” Social Responsibility, Professional Ethics, and Management: Proceedings of the 11th International Congress, Askara-Turkey., 24-27 November 2010.
  31. Teece, D. (2018). Dynamic capabilities. Accessed 16 September 2023., Available at https://www.davidjteece.com/dynamic-capabilities.
  32. The Economist Intelligence Unit. (2020). China’s food future. Accessed 15 September 2023., Available at https://impact.economist.com/perspectives/sites/default/files/chinas_food_future_metcold_final.pdf
  33. Tregear, T.R., and Falkenheim, V.C. (2023). Henan. Accessed 12 October 2023., Available at https://www.britannica.com/place/Henan/Soils.
  34. United Nations Food and Agriculture Organization (FAO). (n.d.) Food systems: environments, production, distribution, and household utilization of food. Accessed 28 September 2023, from https://www.e-education.psu.edu/geog3/node/1032#:~:text=Food%20distribution%20involves%20a%series.gift%2Dgiving%20and%20public%20food.
  35. Utami, H. And Alamanos, E. (2023). Resource-based theory: A review. In S. Papagiannidis (Ed), TheoryHub Book. Accessed 16 September 2023., Available at https://open.ncl.ac.uk/theories/4/resource-based-theory.
  36. Vespia, C. (2023). 8 tips for successful financial management in food service. Accessed 18 December 2023., Available at https://altametrics.com/blog/8-tips-for-successful-financial-management-in-food-service.html.
  37. Webster, P., Widomski, K., Zieris, M., Wessling, I., Johnson, N., and Perthuisot, C. (2023). Strengthening resilience in food and beverage product development. Viewpoint. Accessed 18 December 2023., Available at https://www.adlittle.com/en/insights/viewpoints/strengthening-resilience-food-beverage-product-development.
  38. Zhang, L. (2023). China’s Henan province, home to the world’s largest iPhone factory, pushes US$7 billion digital infrastructure expansion programme. Accessed 12 October 2023., Available at https://www.scmp.com/tech/policy/article/3208607/chinas-henan-province-home-worlds-largest-iphone-factory-pushes-us7-billion-digital-infrastructure.
  39. Zhang, W. (2016). “A study of food enterprises’ awareness and behaviors for social responsibility.” Acta Universitatis Cibiniensis Series E: Food Technology, Vol. XX (2).
  40. Zhuang, K., and Jiang, Y. (2016). “An analysis of the development of the Chinese fast food industry.” Journal of Asian Business Strategy, 6 (5), 85-100. https://doi.org/10.8488/journal.1006/2016.6.5/1006.5.85.100.