*2.2. Convention Theory*

To move from the high level of abstraction present within the NRBV in order to develop our quality framework, we propose to incorporate an additional theoretical perspective. We draw from CT, a theory that originates in "French pragmatic sociology" [34] (p. 12). CT attempts to reconcile how territorial, market, and production aspects of economic exchange can be coordinated when uncertainty exists, including the notion of embeddedness [35]. Within CT, embeddedness accounts for aspects of economic exchange that cannot be explained via purely rational economic decision-making [21]. CT incorporates the concept of embeddedness to describe how different sets of conventions are bundled within a specific product and its supply chain. In describing quality conventions as bundled, CT allows for the possibility of choosing to emphasize one particular convention over others, as well as the ability to reconfigure conventions when strategically necessary [36].

CT has been used extensively in the disciplines of economic geography, regional studies, and political economy, with specific applications in the agri-food context. These studies apply CT to contrast quality conventions and justification of those conventions in different types of restaurants, and how wine makers specify different sets of conventions depending on the target market [37–39]. studies, and political economy, with specific applications in the agri-food context. These studies apply CT to contrast quality conventions and justification of those conventions in different types of restaurants, and how wine makers specify different sets of conventions depending on the target market [37–39].

rates the concept of embeddedness to describe how different sets of conventions are bundled within a specific product and its supply chain. In describing quality conventions as bundled, CT allows for the possibility of choosing to emphasize one particular convention over others, as well as the ability to reconfigure conventions when strategically necessary

CT has been used extensively in the disciplines of economic geography, regional

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Storper and Salais [39] suggest that producers develop their offerings by positioning the selection and bundling of sets of quality conventions along the dimensions of supply and demand characteristics. Supply characteristics related to the level of specialization of the technology, methods, knowledge and skills used in production. Alternatively, demand characteristics relate to the extent to which the product is generic versus differentiated in terms of consumer requirements. These dimensions, when combined, yield what has been termed in the political economics literature as worlds of production [39]. Later work has applied CT in this way to demonstrate how firms move into different worlds or may occupy more than one world at a time depending on firm objectives [40]. From this literature, we adopt the terminology of standardized versus specialized for supply (i.e., process) characteristics, and generic versus differentiated when describing demand (i.e., product) characteristics. Accordingly, the worlds of production can be depicted as shown in Figure 1. In summary, the worlds of production combine "technologies and markets, product qualities, and practices of resource use," [34] (p. 15) to form a typology that can "formulate forms of organization, coordination and exchange specific to the nature of the product that is exchanged, and the means of justifying its quality claims," [34] (p. 15). The two dimensions yield the generic typology shown in Figure 1, with four quadrants corresponding to the pairing of the extreme endpoints of supply and demand characteristics. Storper and Salais [39] suggest that producers develop their offerings by positioning the selection and bundling of sets of quality conventions along the dimensions of supply and demand characteristics. Supply characteristics related to the level of specialization of the technology, methods, knowledge and skills used in production. Alternatively, demand characteristics relate to the extent to which the product is generic versus differentiated in terms of consumer requirements. These dimensions, when combined, yield what has been termed in the political economics literature as worlds of production [39]. Later work has applied CT in this way to demonstrate how firms move into different worlds or may occupy more than one world at a time depending on firm objectives [40]. From this literature, we adopt the terminology of standardized versus specialized for supply (i.e., process) characteristics, and generic versus differentiated when describing demand (i.e., product) characteristics. Accordingly, the worlds of production can be depicted as shown in Figure 1. In summary, the worlds of production combine "technologies and markets, product qualities, and practices of resource use," [34] (p. 15) to form a typology that can "formulate forms of organization, coordination and exchange specific to the nature of the product that is exchanged, and the means of justifying its quality claims," [34] (p. 15). The two dimensions yield the generic typology shown in Figure 1, with four quadrants corresponding to the pairing of the extreme endpoints of supply and demand characteristics.

[36].

### 2.2.1. Quality Conventions 2.2.1. Quality Conventions

CT proposes that a set of *conventions* define product quality; conventions are present (or absent) to varying degrees within specific products and their associated processes (Figure 1). By agreeing on the meaning of specific conventions, producers can regulate quality CT proposes that a set of *conventions* define product quality; conventions are present (or absent) to varying degrees within specific products and their associated processes (Figure 1). By agreeing on the meaning of specific conventions, producers can regulate quality within their supply chain and customers can evaluate quality relative to a specific transaction. The product quality conventions include: (1) Market; (2) Industrial; (3) Ecological; (4) Domestic (5) Innovation; (6) Civic; and (7) Public [34,39] The *market convention* is characterized by attributes such as price or underlying economic value of the product. In the complete absence of uncertainty about product quality, the market convention is theorized as sufficient for assessing quality. The *industrial convention* is associated with traditional attributes such as efficiency and reliability of production, including the ability to produce at scale and to extend product scope or variety.

The *ecological convention* relates to the environmental sustainability of products and processes. The *domestic convention* relates to product attributes tied to specific locations or traditional production methods. The *innovation convention* reflects the novelty, creativity, or new knowledge associated with products and processes. The *civic convention* relates to societal benefit. The political economy literature sometimes subsumes the ecological convention into the civic convention because ecological sustainability is of benefit to society [34,41]. We have chosen to maintain ecological sustainability as a separate convention because we wish to emphasize the distinctive role of the natural environment in determining food quality, as well as the intensity of how FSCs are embedded in the environment.

The *public* convention has been represented in terms of consumer opinions; this type of convention is typically marked by public-facing attributes such as brand, trademarks, and advertised product claims. In this context, the public convention is also indicative of the extent to which consumers are accepting of the product as well as associated production characteristics and find those attributes desirable, or order-winning; this convention therefore would also be associated with any practice that supports one of those order-winning characteristics.

CT does not dictate how individual conventions are prioritized or valued and does not prescribe how conventions are bundled for competitive advantage. Our study contributes by empirically examining how organizations bundle and prioritize conventions for competitive advantage in FSCs. We begin by reviewing the CT and OM/SCM literature in the agri-food context to elaborate on a set of *attributes* associated with each quality convention (Table 1), as well as how quality conventions may be assigned and prioritized within the worlds of production framework. Each quality convention is associated with multiple attributes; a set of example *practices* within each attribute has been provided based on the literature review and examples observed in practice. Market, industrial, domestic, innovation, and public conventions were derived from the broader theoretical development of CT [39] and from agri-food applications of CT [42–45]. For aspects of ecological and civic conventions, we adapted existing sustainability frameworks [9,46] in addition to agri-food applications of CT [34,47].


**Table 1.** FSC quality conventions, convention attributes and examples.

