2019-Behzad Hezarkhani

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Is Unexpected Termination of International Joint Ventures Legitimised?

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Dr Behzad Hezarkhani (PI), Brunel University London (UK)

Co-Investigators:

Prof Afshin Mansouri, Brunel University London (UK)

Dr Sean Asian, La Trobe University (AU)

Project summary: Agribusiness imports to the UK from Australia (AU) are currently constrained by several logistical and regulatorychallenges—e.g., high transportation costs, long lead-times, low quotas, and high tariffs—which pose barriers forcorresponding supply chains. Such roadblocks are more insurmountable for SMEs and new entrant producers and/orbuyers with limited bargaining power as well as purchase/ production volumes which do not justify direct relationshipswith suppliers/ customers at a farther geographical distance.

Horizontal cooperation among groups of buyers and/or sellers, in the form of purchasing groups or producer co-operatives, can boost supply chains and achieve the economies of scale which reduce production and logistical costs andjustifies faster, though more expensive, trade routes. This project aims to explore potential innovative supply chainsolutions and identify opportunities for collaboration among groups of Australian agribusiness producers and UK buyers,with special focus on SMEs and new entrant firms.

An indispensable dimension of this project is to incorporate drastic effects of current and near future political economytrends in logistical infrastructures, e.g., Brexit and development of China’s one-belt-one-road, which can cause easementin and recalibration of trade quotas and tariffs. Using scenario analysis, this project sheds light on required advancepreparations for all UK-AU agribusiness supply chain parties, especially SMEs and new entrants.

While paving the way for collaboration between researchers in UK and Australia, deliverables of this project includeknowledge dissemination with impact partners and academic community and scoping most promising directions offuture research and pump-priming subsequent applications for larger national/international grants.