IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v54y2008i4id292-agricecon.html
   My bibliography  Save this article

The impact of supply chain governance structures on the inter-firm relationship performance in agribusiness

Author

Listed:
  • A. Gyau

    (Georg-August University of Goettingen, Goettingen, Germany)

  • A. Spiller

    (Georg-August University of Goettingen, Goettingen, Germany)

Abstract

In this paper, we investigate the relationship between the types of supply chain governance structure and the perceived relationship performance of Ghanaian fresh fruit and vegetable exporters concerning their business with European importers. Using the principal component and regression analyses based on data obtained from 101 interviews with exporters in Ghana, we show that relationship performance is a multi dimensional construct with economic and behavioral relationships as the two main dimensions. The study reveals that whereas the economic relationship performance is influenced by the type of governance structure used, the behavioral relationship performance is not. Thus, the economic dimension of the relationship improves as the firms adopt a more coordinated type of governance structure. We conclude that both the exporters and the importers can improve their economic performance and enhance efficiency in the supply chain if they adopt a more coordinated supply chain governance structure type if there are appropriate mechanisms for equitable distribution of benefits.

Suggested Citation

  • A. Gyau & A. Spiller, 2008. "The impact of supply chain governance structures on the inter-firm relationship performance in agribusiness," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(4), pages 176-185.
  • Handle: RePEc:caa:jnlage:v:54:y:2008:i:4:id:292-agricecon
    DOI: 10.17221/292-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/292-AGRICECON.html
    Download Restriction: free of charge

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/292-AGRICECON.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.17221/292-AGRICECON?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peterson, H. Christopher & Wysocki, Allen F., 1997. "The Vertical Coordination Continuum And The Determinants Of Firm-Level Coordination Strategy," Staff Paper Series 11817, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Mudambi, Ram & Mudambi, Susan McDowell, 1995. "From transaction cost economics to relationship marketing: a model of buyer-supplier relations," International Business Review, Elsevier, vol. 4(4), pages 419-433.
    3. Mighell, Ronald L. & Jones, Lawrence A., 1963. "Vertical Coordination in Agriculture," Agricultural Economic Reports 307164, United States Department of Agriculture, Economic Research Service.
    4. James C. Anderson, 1987. "An Approach for Confirmatory Measurement and Structural Equation Modeling of Organizational Properties," Management Science, INFORMS, vol. 33(4), pages 525-541, April.
    5. Poole, Nigel D. & Del Campo Gomis, Francisco J. & Julia Igual, Juan F. & Vidal Gimenez, Fernando, 1998. "Formal contracts in fresh produce markets," Food Policy, Elsevier, vol. 23(2), pages 131-142, April.
    6. 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.
    7. Stuart D. Frank & Dennis R. Henderson, 1992. "Transaction Costs as Determinants of Vertical Coordination in the U.S. Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 941-950.
    8. I. T. Weleschuk & William A. Kerr, 1995. "The Sharing of Risks and Returns in Prairie Special Crops: A Transaction Cost Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 43(2), pages 237-258, July.
    9. Alan Barkema & Mark Drabenstott, 1995. "The many paths of vertical coordination: Structural implications for the us food system," Agribusiness, John Wiley & Sons, Ltd., vol. 11(5), pages 483-492.
    Full references (including those not matched with items on IDEAS)

    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. Gabor G. Szabo & Krisztina Bardos, 2005. "Vertical Coordination by Contracts in Agribusiness - An Empirical Research in the Hungarian Dairy Sector," CERS-IE WORKING PAPERS 0515, Institute of Economics, Centre for Economic and Regional Studies.
    2. Ferto, Imre & Szabo, Gabor G., 2002. "The Choice Of The Supply Channels In Hungarian Fruit And Vegetable Sector," 2002 Annual meeting, July 28-31, Long Beach, CA 19647, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Szabó G., Gábor & Bárdos, Krisztina, 2007. "Szerződéses kapcsolatok az élelmiszer-gazdaságban. A tejellátási lánc empirikus kutatása [Contract relations in the food economy. Empirical research into the milk-market supply channel]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 459-480.
    4. Awudu Abdulai & Eliud A. Birachi, 2009. "Choice of Coordination Mechanism in the Kenyan Fresh Milk Supply Chain," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 103-121.
    5. Fertő, Imre & Szabó G., Gábor, 2004. "Értékesítési csatornák választása a magyar zöldség-gyümölcs szektorban. Esettanulmány [The choice of supply channels in the Hungarian fruit and vegetable sector - a case study]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 77-89.
    6. Bensemann, Jessica & Shadbolt, Nicola, 2015. "Farmers’ Choice of Marketing Strategy: A Study of New Zealand Lamb Producers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-33, September.
    7. Jaenicke, Edward C. & Shields, Martin & Kelsey, Timothy W., 2007. "Food Processors’ Use of Contracts to Purchase Agricultural Inputs: Evidence from a Pennsylvania Survey," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), pages 1-17, October.
    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.
    9. Fernández Olmos, Marta, 2010. "The performance implications of "grow or buy" decisions in the wine industry," Food Policy, Elsevier, vol. 35(3), pages 256-264, June.
    10. Sartorius, Kurt & Kirsten, Johann, 2007. "A framework to facilitate institutional arrangements for smallholder supply in developing countries: An agribusiness perspective," Food Policy, Elsevier, vol. 32(5-6), pages 640-655.
    11. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    12. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 56-86.
    13. MIRONESCU, Alexandra & STEPIEN, Sebastian, 2012. "Price Risk Management In Hog Production Through The Vertical Coordination Theoretical And Practical Approach," Holistic Marketing Management Journal, Holistic Marketing Management, vol. 2(4), pages 19-25, September.
    14. Yu, Xiaohua & Abler, David G. & Peng, Chao, 2008. "Dancing with the Dragon Heads: Enforcement, Innovations and Efficiency of Contracts between Agricultural Processors and Farmers in China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6144, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Michael Hubbard, 1997. "The ‘New Institutional Economics’ In Agricultural Development: Insights And Challenges," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 239-249, January.
    16. 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.
    17. CHINAKI Christina & SERGAKI Panagiota, 2018. "Potentials and Pitfalls of Contract farming through Agricultural Cooperatives in Greece," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 27(1), pages 111-122.
    18. Fraser, Iain, 2005. "Microeconometric analysis of wine grape supply contracts in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-24.
    19. Rehber, Erkan, 2000. "Vertical Coordination In The Agro-Food Industry And Contract Farming: A Comparative Study Of Turkey And The Usa," Research Reports 25225, University of Connecticut, Food Marketing Policy Center.
    20. Anderson, John D. & Trapp, James N., 1999. "Estimated Value of Non-Price Vertical Coordination in the Fed Cattle Market," Staff Papers 232529, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.

    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:caa:jnlage:v:54:y:2008:i:4:id:292-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.