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Quantifying Strategic Choice Along the Vertical Coordination Continuum

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  • Wysocki, Allen F.
  • Peterson, H. Christopher
  • Harsh, Stephen B.

Abstract

The qualitative and quantitative results of a study undertaken to test a decision framework firms might consider in choosing a vertical coordination strategy are presented. The posited five-step decision making process tested that a change in coordination strategy would occur if and only if a "yes" decision was made at each step. The results reported as case-based frequencies and as a discriminate analysis function provide strong support for the study's research propositions. The ability of an alternative to reduce the costliness of a coordination error and the acceptability of the risk/return tradeoff were critical to the willingness of a sample of producers to change coordination strategy. Implementability was significant, but not to the same extent as costliness of a coordination error or acceptability of the risk/return tradeoff.

Suggested Citation

  • Wysocki, Allen F. & Peterson, H. Christopher & Harsh, Stephen B., 2003. "Quantifying Strategic Choice Along the Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 6(3), pages 1-23.
    • Handle: RePEc:ags:ifaamr:34395
    DOI: 10.22004/ag.econ.34395
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    File URL: https://ageconsearch.umn.edu/record/34395/files/0603wy01.pdf
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    References listed on IDEAS

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    1. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(2), pages 1-18.
    2. Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-325, May.
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    Cited by:

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