Study on the Feedback Operation Mechanism of Food Safety Governance Innovation Ecosystem

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Studies in System Science (SSS) Volume 4, 2016

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Study on the Feedback Operation Mechanism of Food Safety Governance Innovation Ecosystem Mu Jing1, Yang Xiudan2 Food Safety Strategy and Management Research Centre, Tianjin, China

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College of Economics & Management, Tianjin University of Science & Technology, Tianjin, China

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mujing@tust.edu.cn; 213512290027@163.com

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Abstract Food safety issue is becoming more and more serious. To really get out of the food safety crisis and realize the stability of the food security situation better, we must construct a system of food safety social work innovation actively, implement the food safety of multiple governance body function coupling. In this thesis, based on the innovation theory and ecological system theory food safety management innovation ecosystem was constructed; based on the causality diagram, food safety management innovation ecosystem dynamics basic structure model was also constructed, and using the theory of system flow diagrams related, the feedback mechanism of innovation ecosystem was explored as well. With the hope of both in theory and in practice for the food safety governance innovation methods selection, the strategy pattern construction, as well as the construction of innovation system of food safety governance mechanism, provides referential schemes. Key words Food Safety Management; System Dynamics; Feedback Mechanism

Introduction As food safety issue is becoming more and more serious, the innovation of traditional governance mechanism is imminent, to explore a sustainable, efficient and system management system. So we must improve food safety management ability. More and more scholars realize the importance of food safety management innovation, and carry on thorough research. In the face of the market mechanism failure, lack of government supervision, participation in community governance underpowered, such problems as lack of corporate social responsibility, Government regulation are crucial. However, in order to solve the problem of food safety fundamentally, just relying on the government regulation is difficult to implement. It is in need of the government, enterprises and consumers and other stakeholders co-governance, sharing responsibility. The food safety governance mechanism innovation should be pushed, to realize the plural collaborative governance. Food safety management innovation is the important content of the social management system innovation and construction of ecological civilization; however, the current study is not to go deep into the field of innovation ecosystem. In view of this, this thesis combines the innovation theory and ecological theory with the food safety governance issue to develop an ecological innovation domain, by exploring the food safety management mechanism innovation ecosystem, hoping to further enrich the research contents of the innovation ecosystem theory and to provide useful reference for food safety management innovation mode selection in theoretical and practical respects. Analysis of Food Safety Governance Innovation Ecosystem In this thesis, combining ecology theory, innovation theory and food safety management theory, the author puts forward to the concept of food safety governance innovation ecosystem: in certain social and ecological environment, in order to effectively govern food safety problem, the government, enterprises and consumers, food industry association, social organizations and other innovation main body through the form of virtual, alliance between complementary advantages and resources, information, benefit sharing and forming an organic ecological system must cooperate closely. Great changes have taken place in the ecological system, the former independent

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Studies in System Science (SSS) Volume 4, 2016

existence of each factor does no longer exist independently, but follows with the restriction, closely related, and interactions with each other at any time on material, energy and information exchange, showing the integrity of the system. In order to keep the exchange of information, energy and matter, tending to be orderly, food safety governance innovation ecosystem must be open to the outside world and to keep vitality; otherwise, the system can't get development, thus the system should be open. That multiple stakeholders involved in food safety management are the embodiments of the system’s openness; effective public participation is a powerful supplement of government regulation; In the food safety governance innovation ecosystem, with the main body power boundary defined clearly and partnership balanced, each subject will be in their respective boundary within the scope of its power, and the stability of the power equilibrium makes the whole stability of governance structure. If one party exceeds the power line, or destroys the coordination regulation mechanism, it will be punished in accordance with the law, even make the serious log out. Ultimately, the food safety governance innovation ecosystem achieves stable equilibrium, so the system also possesses the stability. Dynamics Model of the Food Safety Governance Innovation Ecosystem Food safety governance innovation ecosystem is a complex social system which is self-contained and combines with the outside world; therefore, this article considers the study on the operational mechanism of food safety governance innovation ecosystem which needs to be illustrated from the perspective of system dynamics. Combining with the above analysis of food safety governance innovation ecosystem, the related theory and method of system dynamics are introduced to establish a corresponding dynamic model and to provide certain theoretical guidance for the policy formulation of the food safety management.

FIG. 1 STRUCTURAL MODEL OF FOOD SAFETY GOVERNANCE INNOVATION ECOSYSTEM

Research on the Feedback Mechanism of the Food Safety Governance Innovation Ecosystem As the causality diagram in the study of system is not perfect, and the causality diagram itself is insufficient as well, it is often just applied to the problem of perception in the initial stage. On the basis of cause and effect diagram, the flow diagram is used further to describe the system. It not only can clearly reflect the logical relationship between system elements, but can also make clear the property of each variable in the system, then depict the feedback of the system as well as the control process. The system dynamics deem that the behavior patterns and characteristics of the system mainly depend on its internal structure and the dynamic feedback mechanism, as long as we can grasp the system of the feedback loop, then we can understand the complex dynamic behavior characteristics of the management system spontaneously. 10


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Analysis of the Loop Feedback Mechanism of the System The loop feedback mechanism is a basic set of rules and regulations to ensure the mechanism of innovation system in efficient operation. The government is the main operator of the operating mechanism of the system. The incentive mechanism and supervision mechanism are mainly included. Incentive mechanism is the execution of the institutional framework of the government in order to exert potential of innovation main body in the system management, through the rewards and punishment system to run. Supervision mechanism is an important system innovation ecosystem in the process of running mechanism, so it has the restriction role in the division of rights, responsibilities and benefit between the main body of the innovation system rights. Supervision mechanism provides favorable institutional guarantee for the system in the distribution of interests and resources, as well as the rights and obligations the main body enjoys.

FIG.2 SYSTEM LOOP DYNAMIC FLOW DIAGRAM

Analysis of Technology Cycle Feedback Mechanism of the System Technology cycle including all kinds of technology patents, experience, creativity such as the flow of knowledge form, is both explicit and implicit. From the technology cycle dynamic flow graph, the State variable of food safety traceability system is under the control of the rate variable of the food safety information system, while the technical transformation can form innovation management ability. Whereas the benefit of the governance is influenced by the first negative responsibility system of the food enterprise. Food safety traceability system provides food safety information service for consumers, food enterprise internal staff, government, food industry association, social organizations and other regulators by using multiple channels, which can be traced back to the related information in the raw materials of food production. When a food safety accident happens, we will recall the unqualified food through the traceability system which can help us identify the information about problem of manufacturers and production batch. Besides, the link which goes wrong and the corresponding enterprise should be found. Furthermore, the relevant Liability company is investigated as well.

FIG.3 TECHNOLOGY CYCLE DYNAMIC FLOW DIAGRAM

Analysis of Money Loop Feedback Mechanism of the System Capital circulation refers to finance flow among governance subjects as well as between the governance subjects and external environment, the fund itself is not crucial. The significance is the transfer of technology, material resources accompanied by cash flow, which plays the role as a booster in the whole operational mechanism. From the perspective of the dynamic flow graph 4 of capital circulation, government funding directly affects the steadily building of the food industry association, social organizations and other groups. Sufficient funds have the ultimate

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power to speed up the establishment of the nongovernmental organizations. To strengthen social supervision, and to set up reputation mechanism, with good reputation will bring long-term profits, and a steady stream of capital inflows is the ultimate power of food enterprise safety in production. Government net inflow is restricted by the fiscal revenues, while the government revenue is influenced by economic development. That government funding to establish reward can encourage social organizations to report system (media) positive exposure unsafe food, and motivate the public consumer to protect rights, and promote the food safety management ability.

FIG. 4 CAPITAL CIRCULATION OF DYNAMIC FLOW DIAGRAM

Dynamic Flow Diagram of the Operation of the Food Safety Governance Innovation Ecosystem The running of the food safety governance innovation ecosystem is embodied in virtuous cycle of system, technology and capital. A combination of the above analysis of the three systems of dynamic flow chart is done. Then the dynamic flow diagram of the operation of the food safety governance innovation ecosystem can be obtained.

FIG. 5 THE DYNAMIC FLOW DIAGRAM OF THE OPERATION OF FOOD SAFETY GOVERNANCE INNOVATION ECOSYSTEM

Countermeasure of Virtuous Operating Mechanism of the Food Safety Governance Innovation Ecosystem Through the analysis of food safety governance innovation ecological system based on system dynamics mechanism and combined with the research on the prerequisite driving factors of feedback mechanism: system, technical and financial, it can be concluded that there are several factors to promote a virtuous cycle of system mechanism, in order to strengthen the system innovation effect. So the limitation of interference factors must be broken through via a certain path, and this also offers thought for promoting the development of food safety governance innovation ecosystem. Innovation of Food Safety System The innovation of food safety system is proceeded from the following aspects: (1) the food recall system further

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improves laws and regulations to make specific provision of food recall standards and operating procedures. The government mandates that the recall of responsibility of the government and the enterprise, advanced detection technology, social acceptance inspection standards, business integrity, self-discipline and strong will actively cooperate with the government by keeping to strictly feasible food recall procedures; (2) risk assessment system: at first, experts evaluate the food safety issues and risk factors; according to the evaluation results, government departments should adopt corresponding countermeasures for risk management in combination with the actual situation; in the end, the experts assess results and the government risk management countermeasures are released to stakeholders; (3) the traceability system: food production process flows mainly are required to be divided into production processing, packaging of products, product transportation and sale of food companies such as name and the information of tracking available. Once problems appear, the reason can be found in time to avoid bringing more harm to consumers; (4) information disclosure system: information disclosure system requires food production enterprises who has information superiority to implicit information publicly. Speed up the Development of Food Safety Management Technical Support Food safety technology level reflects a country and regional regulatory level and ability. Giving full play to their role as the technical support has important significance to improve the food security situation in our country. So it can be proceeded from the following aspects: unifying test inspection institution construction plan, inspection standard, update equipment; promoting the implementation of the HACCP mode, and implementing the enterprise production, the regulatory rules, circulation, consumption and so on for the whole traceability; establishing and perfecting food safety rapid alert system, and building a food safety monitoring and early warning information platform, to solve the most urgent and serious problem; perfecting the risk, risk assessment technology, to provide evidence for reasonable policies and regulations. Increase Government Fund Investment Governments of all levels should further increase the funds investment in accordance with the relevant laws and regulations, including the special working funds of food safety in the budget and making sure that it gradually increases according to the actual working situation. The food security funds safeguard mechanism are established and improved to speed up the food safety risk monitoring and evaluation center, reporting center, propaganda and education center construction and development of the food safety supervision and security system; Innovation fund is used to update backward detection technology; the rewards and subsidy funds must be carried out; spending on hardware should be increased as food safety accident treatment requires to, ensure the accident emergency calls; local governments set up reward special funds for reporting, which should be moderate for expanding the scope of the reward, and deliver the reward in time to anyone who provides effective clues which is verified, and raise amount of the reward for internal reporting. Conclusion In this thesis, multiple subjects being involved in food safety management integrates resources and advantages of all parties concerned, designing all kinds of institutional arrangements and governance mechanism as a whole, which offers a new way to solve the problem of food safety. Based on the system dynamics, this thesis constructs the causality diagram, food safety governance innovation ecosystem on the basis of cause and effect diagram; and through flow diagram it explores the innovation system of ecosystem circulation mechanism, feedback mechanism, and technical feedback loops loop feedback mechanism of funds. Then, the combination draws a conclusion of the dynamic flow diagram of the operation of food safety governance innovation ecosystem. Finally, the article gives some policy suggestions on promoting benign operation of the food safety governance innovation ecosystem, which is hoped to provide certain theoretical references for the food safety management. REFERENCES

[1] Zhao Cuiping, Li Yongtao, Chen Zishuai. Stakeholders in food safety governance responsibility: government, enterprise and consumer dimension analysis [J]. Journal of economic issues, 2012 (6): 63-66.

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[2] Chen Yan li. Food safety mechanism of social work research [J]. Journal of economic management, 2014246 (9): 122-126. [3] Xia Haiqing. Coupling mechanism of food safety management research in China [J]. Journal of economic BBS, 2014 (11): 2627. [4] Stephen L.Vargo, Heiko Wieland et al. Innovation through institutionalization: A service ecosystems perspective [J]. Industrial Marketing Management, 2015, 44:63-72. [5] Adner R, Kapoor R. Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generation [J].Strategic Management Journal, 2010, 31(3), 306-333. [6] Giedrius Jucevicius, Kristina Grumadaite. Smart development of innovation ecosystem [J]. Procedia-Social and Behavioral Science, 2014, 156:125-129.

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