Impacts of non-GMO standards on poultry supply chain governance: transaction cost approach vs resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 743-758 ◽  
Author(s):  
Houda Ghozzi ◽  
Claudio Soregaroli ◽  
Stefano Boccaletti ◽  
Loïc Sauvée
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Genetically Modified Organisms ◽  
Animal Feed ◽  
Governance Structure ◽  
Empirical Literature ◽  
Governance Structures ◽  
Resource Based View ◽  
Content Type ◽  
Cost Approach

Purpose Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some retailers and processors introduced their own non-GMO standards, with the intention of avoiding the presence of GMOs in their products. This paper aims to understand how the implementation of these new retailer-driven standards affects governance structures along the supply chain and the determinants of such change focusing on transaction cost approach (TCA) vs resource-based view (RBV). Design/methodology/approach The non-GMO introduction is investigated as a case study in the poultry industry of France and Italy. The case relies on data primarily collected from interviews with the main actors at five stages of the supply chain from the retailer up to animal feed and crop production. Findings Findings indicate that the introduction of non-GMO products had different impacts on the transactions along the supply chain, generally leading to more integrated relationships. Theoretical relevance depends on the observed transaction and the type of governance structure considered. Interestingly, only RBV explains the shift toward hierarchical governance when this is observed. Originality/value This paper contributes to the empirical literature highlighting the upstream effects caused by the adoption of new standards. On the theoretical side, building on Conner and Prahalad’s (1996) seminal work and leveraging on the concepts of opportunism, “potential” superior knowledge and strategic importance of an activity, this research suggests a comparative framework for identifying governance structures and their determinants under TCA and RBV.

Enforcement mechanisms and governance structures to protect a region of origin lamb product

2019 ◽  
Vol 24 (5) ◽  
pp. 561-573
Author(s):  
Melissa van der Merwe ◽  
Johann F. Kirsten ◽  
Jacques H. Trienekens
Keyword(s):  
Supply Chain ◽  
Hierarchical Structures ◽  
Food Product ◽  
Governance Structure ◽  
Interesting Case ◽  
Governance Structures ◽  
Region Of Origin ◽  
Content Type ◽  
Regional Food ◽  
Enforcement Mechanisms

Purpose This paper aims to make an empirical contribution by investigating the enforcement mechanisms and governance structures required to protect and govern a regional food product when public certification fails. As one of the recent additions to South Africa’s repertoire of products with a designated origin, Karoo Lamb made for an interesting case study. Design/methodology/approach A conjoint analysis was conducted to elicit the farmers’ preferred enforcement mechanisms to protect the authenticity of the Karoo Lamb product. The investigation, furthermore, draws on survey data collected among 73 farmers, five abattoirs, two processors/packers and five retail outlets to evaluate the governance structures of the Karoo Lamb supply chain. Findings The results indicate that due to failed public certification that is governed by market-like structures, Karoo Lamb is better off being governed by hierarchical structures. These structures are expected to allow for a stronger focus on stricter enforcement mechanisms. Practical implications At the farm level, the Karoo Lamb supply chain requires better enforcement mechanisms to protect the unique attributes of origin and taste to ensure the authenticity of Karoo Lamb. This change towards stricter enforcement requires more hierarchical structures to allow for private or mutual enforcement mechanisms. Originality/value This paper contributes empirically to the governance structure knowledge base by analysing the enforcement mechanisms and governance structures needed to enforce and protect, the quality and origin standards of a region of origin product, Karoo Lamb, in South Africa.

Can a supplier benefit from investing in transaction-specific investments? A multilevel model of the value co-creation ecosystem perspective

2020 ◽  
Vol 25 (6) ◽  
pp. 773-787
Author(s):  
Ming-Chang Huang ◽  
Min-Ping Kang ◽  
Jui-Kun Chiang
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Network Effects ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Resource Based View ◽  
Content Type ◽  
Specific Investments ◽  
Integrated Supply Chain ◽  
Chain Level

Purpose This paper aims to build and empirically test a multilevel framework integrating transaction cost economics and a resource-based view into a value co-creation ecosystem perspective to explain the chain- and firm-level effects of transaction-specific investments (TSIs) on supplier performance. Design/methodology/approach This paper investigates cross-level network effects using survey data from the List of Taiwanese Central Satellite Production Systems. A total of 34 buyers (hub firms) and 106 suppliers (satellite firms) from 34 supply chains responded to the survey. Findings Findings confirm that individual firms’ TSIs can foster co-specificity at the supply chain level, thereby improving supply chain integration (SCI). SCI can have a positive cross-level moderating effect on the TSI–performance relationship. Research limitations/implications These two key concepts, value co-creation and co-specificity, extend the theoretical application of transaction cost theory and the resource-based view to cross-level study by contributing to the research on the TSI–performance relationship. Practical implications This study’s framework is a counter to the buyer–supplier–supplier relationships in which each actor who may have different goals can create value jointly and share benefits from their TSIs. Social implications Owing to high co-specificity, being embedded in a well-integrated supply chain can be a threat when the environment is turbulent; for losing strategic flexibility, co-specificity and embeddedness may result in a collective adaptation concern. High degrees of SCI may slow the reaction to environmental turbulence for both buyers and suppliers. Originality/value Individual firms’ TSIs can foster co-specificity at the supply chain level, subsequently enhancing SCI. An integrated supply chain can be a collective asset that facilitates value co-creation. Individual firms can benefit from the sharing of collective value. SCI can also increase switching costs, thus reducing the likelihood of individual firm engaging in opportunistic behavior and cost safeguarding.

scholarly journals Governance structure and transaction cost: relationship between strategy and asset specificity

Nova Economia ◽  
2007 ◽  
Vol 17 (3) ◽  
pp. 443-468 ◽  
Author(s):  
Christian Luiz da Silva ◽  
Maria Sylvia M. Saes
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Governance Structure ◽  
Asset Specificity ◽  
Governance Structures ◽  
Theoretical Discussion ◽  
Production Chain ◽  
Cost Approach ◽  
Determining Factors

This article presents a theoretical discussion of the determining factors of governance structures, using the transaction cost approach. The coexistence of distinct structures in the same production chain, whose assets show no difference in terms of specificity, is a problematic challenge for transaction cost economics, since it predicts a convergence towards the most efficient structures. The research is pure and explanatory and seeks to identify the determining or contributing variables to the occurrence of the phenomena. Thus, the research source is documental, encompassing the literature discussing the relation between governance structure and transaction cost.

scholarly journals Firms' Choice of Regulatory Instruments to Reduce Pollution: A Transaction Cost Approach

2004 ◽  
Vol 6 (3) ◽  
pp. 1-20 ◽  
Author(s):  
Magali Delmas ◽  
Alfred Marcus
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Command And Control ◽  
Governance Structure ◽  
Governance Structures ◽  
Negotiated Agreements ◽  
Regulatory Instruments ◽  
Market Opportunities ◽  
And Control

This paper compares the economic efficiency of firm-agency governance structures for pollution reduction using transaction costs economics. Two governance structures are analyzed with the transaction costs approach: command and control regulation (CCR) and negotiated agreements (NAs). We propose that the choice of governance structure depends on the strategies firms pursue given the attributes of their transactions and their market opportunities. The application of transaction cost economics analysis leads to different choices of regulatory instruments. Firms in more mature, stable industries are likely to choose command and control, while firms in new, dynamic sectors are more likely to opt for negotiated agreements. Frequency of transactions is a key factor in firm choice.

scholarly journals Identity Preservation of Genetically Modified Organisms in the Food Chain: Requirements, Methods, and Costs

2002 ◽  
Vol 85 (3) ◽  
pp. 762-767 ◽  
Author(s):  
Graham Brookes
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Genetically Modified Organisms ◽  
Production Systems ◽  
Agronomic Traits ◽  
Animal Feed ◽  
Herbicide Tolerance ◽  
Human Consumption ◽  
The European Union ◽  
Food Supply Chain

Abstract The use of the technology of genetic modification (GM) in European agriculture and the food supply chain is currently controversial. Because of strong anti-GM technology sentiments, the use of ingredients derived from plants containing GM have largely been eliminated from foods manufactured for direct human consumption by the food supply chain in much of the European Union (EU). During the past year, the attention of those opposed to the technology has turned to the use of GM ingredients in livestock production systems by incorporation of GM soy and maize in animal feed. A discussion is presented of the key issues relating to this subject, focusing on how supplies of GM or non-GM products are segregated or how their identities are preserved. The discussion is centered on GM maize and soybeans into which agronomic traits, such as herbicide tolerance and/or insect resistance, have been incorporated. These are currently the only crops into which some varieties containing GM have been approved for use in the EU.

Strategic Management of International Subcontracting

2010 ◽  
pp. 1924-1934
Author(s):  
Yue Wang
Keyword(s):  
Supply Chain ◽  
Strategic Management ◽  
Transaction Cost ◽  
Empirical Research ◽  
International Business ◽  
Multinational Enterprises ◽  
Cost Model ◽  
Governance Structure ◽  
Complex Nature ◽  
Relational Contract

Research on international subcontracting has been policy-oriented and industry-focused. There is a lack of understanding of the phenomenon from strategic management and international business perspectives. This article conceptualizes international subcontracting as a type of relational contract formed by buyers and suppliers from different countries, aiming to facilitate the sourcing of products or components with buyer-specific requirements. It builds a transaction cost model for studying the strategic choice of international subcontracting as an intermediate governance structure, sitting between arm’s length outsourcing arrangement and vertically integrated multinational enterprises (MNEs). A set of propositions are developed to aid future empirical research and to provide managers with some guidelines for organizing supply chain across borders. The model also allows managers to examine the complex nature of a range of subcontracting relationships and identify the specific mechanisms that can be used to preserve and manage the dyadic principal-subcontractor exchanges.

An empirical study of Chinese SME grocery retailers’ distribution capabilities

2016 ◽  
Vol 21 (1) ◽  
pp. 63-77 ◽  
Author(s):  
Teck-Yong Eng
Keyword(s):  
Supply Chain ◽  
Market Orientation ◽  
Uncertain Environments ◽  
Resource Based View ◽  
Content Type ◽  
Behavioral Norms ◽  
Supply Chain Relationships ◽  
Interfirm Relations ◽  
Internal Distribution ◽  
The Right

Purpose – This study aims to examine theoretical insights from market orientation and resource-based view for enhancing grocery retailers ' distribution capabilities. The distribution capability of a firm can influence both effective and efficient handling of external stocks and internal distribution of products in response to changing market demands. Although firms rely on distribution capability to manage their supply chain to ensure the right products are in the right place at the right time, few studies examine the underlying factors that support distribution capabilities for a firm’s upstream and downstream supply chain activities especially in uncertain environments. Design/methodology/approach – In the context of retail firms, a review of the literature shows that distribution capability can be conceptualized as an interfirm phenomenon based on theoretical insights from the resource-based view, market orientation and network structure. Findings – Data from a sample of 247 small- and medium-sized grocery retailers operating in three major Chinese cities highlight a salient and positive relationship between a retailer’s distribution capabilities and its performance in uncertain environments. Originality/value – However, a retailer’s strong interfirm relations in a distribution network are negatively associated with retailer performance. Similarly, the influence of interfirm market orientation on retailer performance cannot be established in the supply chain. The study suggests that SME grocery retailers would benefit from understanding their numerous supply chain relationships and managing them (rather than relying on centrally ingrained relationships), and developing behavioral norms of interfirm market orientation among different supply chain partners.

scholarly journals Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcos Fraiha
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Animal Feed ◽  
Model Simulation ◽  
Dynamics Modeling ◽  
Content Type ◽  
Pricing Decisions ◽  
Information Delay ◽  
Multiple Variables ◽  
The Impact

PurposeThe purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed export business.Design/methodology/approachAn empirical dynamic model, loaded with econometric theory of price effect on competitive demand, was used to describe the input data.FindingsThe model simulation outputs proved themselves relevant in analyzing the complex interconnections of multiple variables affecting the profitability in a commercial routine, supporting the decision process among sales managers. The impact of information delay on price decisions and business financial results were estimated using the model proposed.Originality/valueThis paper describes an empirical model, based on system dynamics, that predicts operating contribution margins and cash conversion cycles based on estimation of information and material delays in a supply chain. The method is pragmatic and simple for business routine implementation.

Antecedents and consequences of supply chain information integration: a resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 661-677 ◽  
Author(s):  
Baofeng Huo ◽  
Zhaojun Han ◽  
Daniel Prajogo
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Financial Performance ◽  
Information Integration ◽  
Positive Relationship ◽  
Operational Efficiency ◽  
Equation Modeling ◽  
Resource Based View ◽  
Content Type ◽  
Antecedents And Consequences

Purpose This paper aims to investigate the antecedents of supply chain information integration (SCII) and their consequences on company performance from the perspective of resource-based view (RBV). Design/methodology/approach Based on empirical survey data collected from 202 Australian manufacturers, this study examines the effects of strategic supply chain relationship (SCR) and supply chain technology (SCT) internalization on external and internal information integration (II) and the effects of external and internal II on operational (operational efficiency and service quality) and financial performance. Structural equation modeling and the maximum-likelihood estimation methods are used to test the proposed relationships. Findings The results indicate that both strategic SCR and SCT internalization are positively related to external and internal II. Moreover, strategic SCR has a stronger positive relationship with external II than with internal II, and SCT internalization has a stronger positive relationship with internal II than with external II. Internal II is positively related only to service quality, and external II is positively related only to operational efficiency. Both operational efficiency and service quality are positively related to financial performance. Originality/value This study contributes to the SCII literature and provides significant managerial implications for manufacturers to leverage their supply chain resources and capabilities by establishing a resources-capabilities-performance framework for the antecedents and consequences of SCII.

scholarly journals The Comparative Effects of Transaction Cost Economics and Resource Based View: A Technological Alliance Motivational Perspective

2016 ◽  
Vol 6 (5) ◽  
pp. 64 ◽  
Author(s):  
Hwan Jin Kim
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Governance Structure ◽  
High Tech ◽  
Resource Based View ◽  
Alliance Partner ◽  
Positive Effects ◽  
Alliance Partners ◽  
The Impact ◽  
Alliance Governance

<p>This paper examines the impact of two main alliance motivation theories, transaction cost economics (TCE) and resource based view (RBV), on alliance processes among Korean manufacturing high-tech ventures. Results show that TCE and RBV are complimentarily explaining the formation of inter-firm alliances. TCE variables are more related with alliance partner characteristics while RBV is more linked with partner capabilities. Both show positive effects on performance. No significant effect is found on determining an alliance governance structure. While selecting appropriate technological alliance partners show positive effects on performance, no significant effect is found between alliance governance structure and performance. Factors of both theories impacting each alliance stage and analytical explanations of such impacts are discussed.</p>

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