IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/264238.html
   My bibliography  Save this article

Governance structures and coordination mechanisms in the Brazilian pork chain – Diversity of arrangements to support the supply of piglets

Author

Listed:
  • Martins, Franco M.
  • Trienekens, Jacques
  • Omta, Onno

Abstract

This paper depicts the main coordination mechanisms (CMs) included in governance structures used to support the supply of piglets in the Brazilian Pork Chain (BPC). Furthermore, it analyses how and why actors use plural forms of coordination to support similar transactions. Based on the literature and an exploratory study carried out in the BPC, we propose a framework to analyse how price, volume, quality and resource allocation are coordinated in a transaction. This paper builds on transaction cost economics in two ways. First, it shows that to arrange a transaction, a buyer may set CMs in distinct positions within the markethierarchy continuum. Second, it shows that actors use plural CMs with different counterparties in similar transactions. We found four explanations for plural governance: market fluctuations, bargaining power of suppliers, stricter coordination and quality, and the exchange context.

Suggested Citation

  • Martins, Franco M. & Trienekens, Jacques & Omta, Onno, 2017. "Governance structures and coordination mechanisms in the Brazilian pork chain – Diversity of arrangements to support the supply of piglets," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), March.
    • Handle: RePEc:ags:ifaamr:264238
    DOI: 10.22004/ag.econ.264238
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264238/files/ifamr2016.0064.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/264238/files/ifamr2016.0064.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 421-440, September.
    2. Anne Parmigiani, 2007. "Why do firms both make and buy? An investigation of concurrent sourcing," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 285-311, March.
    3. Hendrikse, George & Jiang, Tao, 2011. "An Incomplete Contracting Model of Dual Distribution in Franchising," Journal of Retailing, Elsevier, vol. 87(3), pages 332-344.
    4. Becker, Tilman C., 2009. "European Food Quality Policy: The Importance of Geographical Indications, Organic Certification and Food Quality Assurance Schemes in European Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1), pages 1-20.
    5. Silke Boger, 2001. "Quality and contractual choice: a transaction cost approach to the polish hog market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(3), pages 241-262, October.
    6. Nicolai Foss, 2002. "New Organizational Forms - Critical Perspectives," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 1-8.
    7. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    8. Klein, Benjamin, 1996. "Why Hold-Ups Occur: The Self-Enforcing Range of Contractual Relationships," Economic Inquiry, Western Economic Association International, vol. 34(3), pages 444-463, July.
    9. Loïc Sauvée, 2005. "Alignment between quality enforcement devices and governance structures in the agri-food vertical chains," Post-Print hal-00155424, HAL.
    10. Heyder, Matthias & Hollmann-Hespos, Thorsten & Theuvsen, Ludwig, 2010. "Agribusiness Firm Reactions to Regulations: The Case of Investments in Traceability Systems," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(2), pages 1-10.
    11. repec:dau:papers:123456789/2722 is not listed on IDEAS
    12. Anna Grandori, 1997. "Governance Structures, Coordination Mechanisms and Cognitive Models," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 1(1), pages 29-47, March.
    13. Zylbersztajn, Decio & Farina, Elizabeth Maria Mercier Querido, 1999. "Strictly Coordinated Food-Systems: Exploring The Limits Of The Coasian Firm," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 2(2), pages 1-17.
    14. Martinez, Stephen W. & Zering, Kelly D., 2004. "Pork Quality And The Role Of Market Organizaton," Agricultural Economic Reports 33973, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arouna Dissa & Jos Bijman & Maja Slingerland & Ousmane Mama Sanogo & Ken E Giller & Katrien Descheemaeker, 2022. "Growing cotton to produce food: Unravelling interactions between value chains in southern Mali," Development Policy Review, Overseas Development Institute, vol. 40(5), September.
    2. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.
    3. Martins, Franco Müller & Trienekens, Jacques & Omta, Onno, 2021. "Impact of buyers' support on farmer performance and investments in the Brazilian pork supply chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), July.
    4. Foscaches, Caroline & Macchione Saes, Maria Sylvia & Bigio Schnaider, Paula Sarita, 2019. "Does social identity matter in governance decisions? Evidence from an agrarian reform settlement in Brazil," Land Use Policy, Elsevier, vol. 83(C), pages 215-226.
    5. Fanny Widadie & Jos Bijman & Jacques Trienekens, 2022. "Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    6. Ni Zhuo & Chen Ji, 2019. "Toward Livestock Supply Chain Sustainability: A Case Study on Supply Chain Coordination and Sustainable Development in the Pig Sector in China," IJERPH, MDPI, vol. 16(18), pages 1-12, September.
    7. Nguyen Thi Nha Trang & Thanh-Thuy Nguyen & Hong V. Pham & Thi Thu Anh Cao & Thu Huong Trinh Thi & Javad Shahreki, 2022. "Impacts of Collaborative Partnership on the Performance of Cold Supply Chains of Agriculture and Foods: Literature Review," Sustainability, MDPI, vol. 14(11), pages 1-28, May.
    8. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martins, Franco Müller & Trienekens, Jacques & Omta, Onno, 2021. "Impact of buyers' support on farmer performance and investments in the Brazilian pork supply chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), July.
    2. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    3. Hobbs, J., 2018. "Transaction Costs, Institutions and the Organization of Supply Chains: Three Good Questions," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277411, International Association of Agricultural Economists.
    4. Setene, Letlama & Jordaan, Daniel du P.S., 2021. "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    5. Han, Jiqin & Trienekens, Jacques H. & (Onno) Omta, S.W.F., 2011. "Relationship and quality management in the Chinese pork supply chain," International Journal of Production Economics, Elsevier, vol. 134(2), pages 312-321, December.
    6. Cholez, Celia & Magrini, Marie-Benoit & Galliano, Danielle, 2016. "Technical knowledge and production contracts between a company and its suppliers: lessons from a French case-study," 149th Seminar, October 27-28, 2016, Rennes, France 244775, European Association of Agricultural Economists.
    7. Huashu Wang & Zhenyi Li & H. Holly Wang, 2022. "Does Backward Integration Improve Food Safety of the Tea Industry in China in the Post-COVID-19 Era?," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    8. Weseen, Simon & Hobbs, Jill & Kerr, William A., 2014. "Reducing Hold-up Risks in Ethanol Supply Chains: A Transaction Cost Perspective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-24, May.
    9. Schmid, Andreas, 2007. "Incentive Compatibility and Efficiency in the contractual Insurer-Provider Relationship: Economic Theory and practical Implications: The Case of North Carolina," MPRA Paper 23311, University Library of Munich, Germany, revised 2008.
    10. Stefano Ciliberti & Simone Del Sarto & Angelo Frascarelli & Giulia Pastorelli & Gaetano Martino, 2020. "Contracts to Govern the Transition towards Sustainable Production: Evidence from a Discrete Choice Analysis in the Durum Wheat Sector in Italy," Sustainability, MDPI, vol. 12(22), pages 1-14, November.
    11. Banterle, Alessandro & Stranieri, Stefanella, 2008. "The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics," Food Policy, Elsevier, vol. 33(6), pages 560-569, December.
    12. Beckmann, Volker & Boger, Silke, 2004. "Courts and contract enforcement in transition agriculture: theory and evidence from Poland," Agricultural Economics, Blackwell, vol. 31(2-3), pages 251-263, December.
    13. Luca Camanzi & Giorgia Bartoli & Beatrice Biondi & Giulio Malorgio, 2018. "A Structural-Functional Theory approach to vertical coordination in agri-food supply chains: Insights from the "Gran Suino Italiano" Inter-branch Organisation," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(2), pages 169-180.
    14. Hobbs, Jill E. & Weseen, Simon & Kerr, William A., 2012. "Transaction Costs, Hold-Ups and Governance in Ethanol Supply Chains," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125158, International Association of Agricultural Economists.
    15. Angelo Frascarelli & Stefano Ciliberti & Gustavo Magalhães de Oliveira & Gabriele Chiodini & Gaetano Martino, 2021. "Production Contracts and Food Quality: A Transaction Cost Analysis for the Italian Durum Wheat Sector," Sustainability, MDPI, vol. 13(5), pages 1-12, March.
    16. repec:dau:papers:123456789/2412 is not listed on IDEAS
    17. Choi, Jongmoo Jay & Ju, Ming & Trigeorgis, Lenos & Zhang, Xiaotian Tina, 2021. "Outsourcing flexibility under financial constraints," Journal of Corporate Finance, Elsevier, vol. 67(C).
    18. Trienekens, Jacques & Velzen, Mariska van & Lees, Nic & Saunders, Caroline & Pascucci, Stefano, 2018. "Governance of market-oriented fresh food value chains: export chains from New Zealand," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(2), March.
    19. Axelle Poizat & Sabine Duvaleix & Jill Hobbs, 2022. "How does transaction governance in the animal supply chain influence antibiotic use? A study of the French young bull sector," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1890-1908, December.
    20. Bruno V. Miranda & Brent Ross & Jason Franken & Miguel Gómez, 2022. "Plural forms and differentiation strategies in the agri‐food sector: Evidence from the U.S. wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 486-504, July.
    21. Yuan, Yang & Chu, Zhaofang & Lai, Fujun & Wu, Hao, 2020. "The impact of transaction attributes on logistics outsourcing success: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 219(C), pages 54-65.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:264238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.