Brazilian Research Agricultural Corporation EMBRAPA

Science, Brazil

Brazilian Research Agricultural Corporation EMBRAPA

Science, Brazil
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Martins F.M.,Wageningen University | Martins F.M.,Brazilian Research Agricultural Corporation EMBRAPA | Trienekens J.,Wageningen University | Omta O.,Wageningen University
International Food and Agribusiness Management Review | Year: 2017

This paper depicts the main coordination mechanisms (CMs) included in governance structures used to support the supply of piglets in the Brazilian Pork Chain (BPC). Furthermore, it analyses how and why actors use plural forms of coordination to support similar transactions. Based on the literature and an exploratory study carried out in the BPC, we propose a framework to analyse how price, volume, quality and resource allocation are coordinated in a transaction. This paper builds on transaction cost economics in two ways. First, it shows that to arrange a transaction, a buyer may set CMs in distinct positions within the markethierarchy continuum. Second, it shows that actors use plural CMs with different counterparties in similar transactions. We found four explanations for plural governance: market fluctuations, bargaining power of suppliers, stricter coordination and quality, and the exchange context. © 2017 Martins et al.

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