IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37617.html
   My bibliography  Save this paper

Trust, contracting, and adaptation in agri-food hybrid structure

Author

Listed:
  • Martino, Gaetano

Abstract

The paper considers the relationship between trust and governance structure from a Transaction Cost Economics perspective. The role of trust in the coordinating decisions is variously conceptualized according to the theoretical view adopted by the scholars. The present study adopt the three‐level schema introduced by Williamson (1996) and suggest that determinants of trust may operate both at institutional and governance structure level. The analytical framework depicted maintains that trust may determine a reduction of ex post transaction cost in the adaptation of hybrid structure. As a consequence trust appears to be able to extend the range of existence of the hybrids. The empirical part of the study is dedicated to a case study which illustrates the emerging of conditional trust (Fritz et al., 2008) and the role of trust in the adaptation process.

Suggested Citation

  • Martino, Gaetano, 2010. "Trust, contracting, and adaptation in agri-food hybrid structure," MPRA Paper 37617, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37617
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37617/1/MPRA_paper_37617.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(3), pages 301-315, May.
    2. Sophie Réviron & Jean-Marc Chappuis, 2005. "Effects of the Swiss retailers' strategy on the governance structure of the fresh food products supply chains," Agribusiness, John Wiley & Sons, Ltd., vol. 21(2), pages 237-252.
    3. Lyons, Bruce R & Mehta, Judith, 1997. "Contracts, Opportunism and Trust: Self-Interest and Social Orientation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(2), pages 239-257, March.
    4. repec:dau:papers:123456789/12332 is not listed on IDEAS
    5. repec:dau:papers:123456789/2722 is not listed on IDEAS
    6. Arrighetti, Alessandro & Bachmann, Reinhard & Deakin, Simon, 1997. "Contract Law, Social Norms and Inter-firm Cooperation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(2), pages 171-195, March.
    7. Chen, Yongmin, 2000. "Promises, Trust, and Contracts," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(1), pages 209-232, April.
    8. Fearne, Andrew & Hornibrook, Susan A. & Dedman, Sandra, 2001. "The Management Of Perceived Risk In The Food Supply Chain: A Comparative Study Of Retailer-Led Beef Quality Assurance Schemes In Germany And Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(1), pages 1-18.
    9. Claude Ménard (ed.), 2000. "Institutions, Contracts and Organizations," Books, Edward Elgar Publishing, number 1921.
    10. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    11. Fritz, Melanie, 2006. "Trust and Risk in Business Networks: Towards a Due Diligence for Electronic Commerce," 99th Seminar, February 8-10, 2006, Bonn, Germany 7753, European Association of Agricultural Economists.
    12. Paul S. Adler, 2001. "Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism," Organization Science, INFORMS, vol. 12(2), pages 215-234, April.
    13. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    14. Martino, Gaetano, 2007. "Trust and Contracting in Agri-Food Hybrid Structures," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6769, International European Forum on System Dynamics and Innovation in Food Networks.
    15. Mick Marchington & Steven Vincent, 2004. "Analysing the Influence of Institutional, Organizational and Interpersonal Forces in Shaping Inter‐Organizational Relations," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 1029-1056, September.
    16. Hofstede, Gert Jan, 2006. "Intrinsic and Enforceable Trust: A Research Agenda," 99th Seminar, February 8-10, 2006, Bonn, Germany 7769, European Association of Agricultural Economists.
    17. 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.
    18. Brousseau,Eric & Glachant,Jean-Michel (ed.), 2002. "The Economics of Contracts," Cambridge Books, Cambridge University Press, number 9780521814904, October.
    19. Tobias Buchman & Andreas Pyka, 2012. "Innovation Networks," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 33, Edward Elgar Publishing.
    20. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    21. Brousseau,Eric & Glachant,Jean-Michel (ed.), 2002. "The Economics of Contracts," Cambridge Books, Cambridge University Press, number 9780521893138, October.
    22. Sako, Mari & Helper, Susan, 1998. "Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and the United States," Journal of Economic Behavior & Organization, Elsevier, vol. 34(3), pages 387-417, March.
    23. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
    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. Martino, Gaetano & Frascarelli, Angelo, 2012. "Adaptation in Food Networks: Theoretical Frame Work and Empirical Evidences," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144981, International European Forum on System Dynamics and Innovation in Food Networks.

    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. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    2. Ranjay Gulati & Maxim Sytch, 2008. "Does familiarity breed trust? Revisiting the antecedents of trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 165-190.
    3. Emeric Lendjel & Marianne Fischman, 2010. "Changements institutionnels et efficience de l'affrètement au voyage dans le transport fluvial de marchandises," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00515244, HAL.
    4. Antonelli, Cristiano, 2003. "The Economics of Governance: the Role of Localized Knowledge in the Interdependence Among Transaction, Coordination and Production," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200303, University of Turin.
    5. Antonelli, Cristiano, 2005. "The Governance Of Localized Knowledge: An Information Economics Approach For The Economics Of Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200502, University of Turin.
    6. Emeric Lendjel & Marianne Fischman, 2010. "Changements institutionnels et efficience de l'affrètement au voyage dans le transport fluvial de marchandises," Working Papers hal-00515244, HAL.
    7. Nicolai J. Foss, 2013. "Knowledge governance: meaning, origins and implications," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 4, Edward Elgar Publishing.
    8. Glachant, Jean-Michel & Pignon, Virginie, 2005. "Nordic congestion's arrangement as a model for Europe? Physical constraints vs. economic incentives," Utilities Policy, Elsevier, vol. 13(2), pages 153-162, June.
    9. Glanchant, J-M. & Pignon, V., 2003. "Nordic Electricity Congestion's Arrangement as a Model for Europe: Physical Constraints or Operators' Opportunity," Cambridge Working Papers in Economics 0313, Faculty of Economics, University of Cambridge.
    10. Klein Woolthuis, R. & Nooteboom, B., 2002. "Trust and Formal Control in interorganizational Relationships," ERIM Report Series Research in Management ERS-2002-13-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    11. Dedeurwaerdere, Tom, 2005. "From bioprospecting to reflexive governance," Ecological Economics, Elsevier, vol. 53(4), pages 473-491, June.
    12. Martino, Gaetano, 2007. "Trust and Contracting in Agri-Food Hybrid Structures," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6769, International European Forum on System Dynamics and Innovation in Food Networks.
    13. repec:dgr:rugsom:03g23 is not listed on IDEAS
    14. Bernard Baudry & Virgile Chassagnon, 2012. "The vertical network organization as a specific governance structure: what are the challenges for incomplete contracts theories and what are the theoretical implications for the boundaries of the (hub," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 285-303, May.
    15. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande, 2015. "The impacts of trust and contracts on opportunism in the 3PL industry: The moderating role of demand uncertainty," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 160-170.
    16. Yannick Perez, 2005. "'Credibility as a trade off' in electricity industries, a first evaluation," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 7(2/3), pages 278-291.
    17. Perez, Yannick & Ramos-Real, Francisco Javier, 2009. "The public promotion of wind energy in Spain from the transaction costs perspective 1986-2007," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1058-1066, June.
    18. Bhimani, Alnoor & Lopes, Alexsandro & De Aquino, Andre Carlos Busanelli, 2017. "Measurement costs and control in outsourcing relationships," LSE Research Online Documents on Economics 68615, London School of Economics and Political Science, LSE Library.
    19. Christian Hirschhausen & Anne Neumann, 2008. "Long-Term Contracts and Asset Specificity Revisited: An Empirical Analysis of Producer–Importer Relations in the Natural Gas Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 32(2), pages 131-143, March.
    20. Garrouste, Pierre & Saussier, Stephane, 2005. "Looking for a theory of the firm: Future challenges," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 178-199, October.
    21. Miller, Peter & Kurunmäki, Liisa & O'Leary, Ted, 2008. "Accounting, hybrids and the management of risk," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 942-967.

    More about this item

    Keywords

    hybrid; conditional trust; adaptation; contractual relationship;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    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:pra:mprapa:37617. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.