Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

Agribusiness ◽  
2009 ◽  
Vol 25 (2) ◽  
pp. 231-250 ◽  
Author(s):  
Marta Fernández-Olmos ◽  
Jorge Rosell-Martínez ◽  
Manuel A. Espitia-Escuer
Keyword(s):  
Transaction Costs ◽  
Vertical Integration ◽  
Wine Industry ◽  
Costs Analysis

scholarly journals PRODUCT DIFFERENTIATION STRATEGY AND VERTICAL INTEGRATION: AN APPLICATION TO THE DOC RIOJA WINE INDUSTRY

2016 ◽  
Vol 17 (5) ◽  
pp. 796-809
Author(s):  
Marta FERNÁNDEZ-OLMOS ◽  
Natalia DEJO-ORICAIN ◽  
Jorge ROSELL-MARTÍNEZ
Keyword(s):  
Transaction Costs ◽  
Product Differentiation ◽  
Vertical Integration ◽  
Representative Sample ◽  
Wine Industry ◽  
Firm Level ◽  
Differentiation Strategy ◽  
Proposed Model ◽  
Unforeseen Contingencies

This study evaluates the importance of product differentiation as a determinant of vertical integration in firms. The proposed model also controls for known determinants of integration, such as transaction costs and firm-level capabilities. By identifying transaction-, firm- and strategy-level determinants, we derive testable predictions about the vertical integration decision. To test these predictions we analyze the Rioja wine industry, using a representative sample of 187 firms. Our paper concludes that reaching judicious vertical integration decisions requires a thorough analysis of some very diverse aspects, especially those related to mitigating opportunism, dealing with unforeseen contingencies and product differentiation.

Agricultural Co-operatives

2017 ◽  
Author(s):  
Samira Nuhanovic-Ribic ◽  
Ermanno C. Tortia ◽  
Vladislav Valentinov
Keyword(s):  
Developing Countries ◽  
Transaction Costs ◽  
Vertical Integration ◽  
Large Scale ◽  
Scale Production ◽  
Economic Literature ◽  
Economic Independence ◽  
Large Scale Production ◽  
Entrepreneurial Action

Over the last decades, agricultural co-operatives grew substantially in most developed and developing countries, often reaching dominant market positions. We inquire into the economic mechanism behind this growth, by elaborating on the relation between co-operative identity and co-operative benefits. We highlight the ability of agricultural co-operatives to co-ordinate large-scale production, to monitor work contributions and product quality, and to ensure economic independence of farmer members. Following the two principal streams in the economic literature, we distinguish between the conceptions of agricultural co-operatives as units of vertical integration and as firms characterized by common governance of collective entrepreneurial action and ability to reduce transaction costs and economic risk. We describe the financial and governance limitations of agricultural co-operatives while taking account of new co-operative models presenting institutional tools introduced to overcome these limitations. We conclude by suggesting directions for enhancing the role of co-operatives in agricultural and rural development.

scholarly journals BIAYA TRANSAKSI DAN ANALISIS KEUNTUNGAN PETANI PADA SISTEM RESI GUDANG KOPI ARABIKA GAYO DI KABUPATEN ACEH TENGAH

2018 ◽  
Vol 6 (1) ◽  
pp. 49-60
Author(s):  
Keumala Fadhiela ◽  
Dwi Rachmina ◽  
Ratna Winandi
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Cost Structure ◽  
Arabica Coffee ◽  
Average Percentage ◽  
Costs Analysis ◽  
The Cost ◽  
Percentage Ratio

The purpose of this study was to analyze the structure of transaction cost and analyze farmers profit on Arabica Gayo Coffee Warehouse Receipt System (WRS) in Central Aceh District. Transaction Costs Analysis (TCA) was used to analize transaction cost structure at selling delay activity and financing activity on WRS. While the ratio of transaction costs to farmers' profit was used to determine the level of effectiveness of WRS. The research was conducted at PT. Ketiara Warehouse, West Aceh district, Aceh. The selected samples were all 4o farmers of Arabica Gayo WRS in Central Aceh Regency. The highest transction cost was on delay selling activity (64,07%) than transaction cost on warehouse receipt financing activity (35,93%). Implementation of the warehouse receipt system in PT. Ketiara provided more benefits to the participants because average percentage ratio between the cost of the transaction with the benefit of <10 percent.  Transaction costs and effectiveness of WRS need more attention and focus on the improvement of these two things to maximize the implementation and sustainability of Gayo Arabica Coffee WRS in Central Aceh District.

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