The Applicability of Transaction Costs Economics to Vertical Integration Decision: Evidences from a Brazilian Beef Processor

This article aims to explore the vertical integration decision of a beef processor from an integrated approach operations strategy and transaction costs economic theory. In this research, vertical integration as a structural decision of operations strategy determined by the occurrence of transaction costs. The paper presents one case study carried out in one beef Processor Company which illustrates the main theoretical assumptions. The results suggest that transaction costs economics helps to identify key points of major strategic decisions on vertical integration due to its behavioural perspective, reducing the effect of uncertainty and asset specificity of this decision. At the end of the paper, future research is suggested.vertical integration, operations strategy, transaction costs economics, Agribusiness, Agricultural Finance, Industrial Organization,

The role of food standards on international trade: assessing the Brazilian beef chain

The purpose of this paper is to identify how Brazilian beef managers have responded to a rapid expansion and intensification of standards for beef exports. This issue relates to how some Brazilian beef exporters are strategically repositioning themselves in the supply chains. The literature of this study reviews global chain governance and international standards. The method uses case studies consisting of six medium and large scale beef exporters who export fresh beef to the European Union. The main findings describe the kinds of governance that stimulate upgrading and transferral of the best practices and, consequently, full compliance with mandatory standards. This study suggests that standards do matter for companies trying to increase international competitiveness. These results contribute an understanding of the Brazilian beef chain, and also of other supply chains coping with demanding and changing international markets. Managerial implications show the challengesfacing Brazilian beef exporters in their efforts to sustain exports to the European Union and how they are using chain governance to improve their compliance with international standards and increase competitiveness

STRATEGIC RESPONSE TO INTERNATIONAL STANDARDS: INSIGHTS FROM THE BRAZILIAN BEEF CHAIN

While Globalisation in the agri-food sector may provide opportunities for companies in developing countries to access international markets, it also threatens the existence of some sub-sectors. This paper reviews existing literature on co-ordination and international standards, identifying the importance of both to supply chain management. In the context of the Brazilian beef export chain, this paper contributes to the question of how exporters are changing their transaction practices in order to respond efficiently to those standards. In-depth interviews with key people and summaries of case study findings highlight the impact of international standards on the organisation of the export supply chain. It is highlighted that to be globally competitive, traditional mistrust and opportunism need to be overcome by the formation of network or quasi integration strategies between processors and suppliers. Prediction shows that sharing market information would lead to a supply chain management and could be considered trading-up.While Globalisation in the agri-food sector may provide opportunities for companies in developing countries to access international markets, it also threatens the existence of some sub-sectors. This paper reviews existing literature on co-ordination and international standards, identifying the importance of both to supply chain management. In the context of the Brazilian beef export chain, this paper contributes to the question of how exporters are changing their transaction practices in order to respond efficiently to those standards. In-depth interviews with key people and summaries of case study findings highlight the impact of international standards on the organisation of the export supply chain. It is highlighted that to be globally competitive, traditional mistrust and opportunism need to be overcome by the formation of network or quasi integration strategies between processors and suppliers. Prediction shows that sharing market information would lead to a supply chain management and could be considered trading-up

THE IMPACT OF CHAIN GOVERNANCE FOR THE PRODUCTION OF TRUST

Consumers are getting increasingly concerned about food quality. Associated with this, public and private sectors have been enforcing compliance with strict food standards. This study focuses on the strategic response of Brazilian beef chain to comply with food standards and their attributes, specifically those demanding trustworthiness among partners. From a chain perspective, the study characterises both the Brazilian domestic and export markets. The empirical approach employed in the study is based on qualitative methods with case studies. The results have great policy and managerial implications. Emerging public and private standards are demanding changes to a more integrated supply chain in order to enhance confidence in beef production and processing. Findings describe those kinds of governance that stimulate upgrading and transferring of best practices and, consequently, result on more trustworthiness on chain relationships. From a managerial perspective, the results suggest that tight governance and investments in management capacity to new forms of organisation have to be considered

The impact of public and private standards on the beef chain co-ordination: an exploratory study

This study focuses on the strategic response of Brazilian beef chains to the food standards, specially related to changes in chain co-ordination. Public and private sector have been enforcing strict food standards. The empirical approach employed in the study is based on qualitative methods. First, a rapid appraisal identified the profile of the beef chain and then, case studies were carried out in two marketing channels: export and supermarkets own brand. From a managerial perspective, the results suggest that investments in management capacity to new forms of organisation and brandings have to be considered. On a public policy level, the results suggest that public sector needs to help small and medium sized chains to meet standards, In particular, the response to credence attributes is an important driver to the use of strategies of co-operation.Neste estudo, foca-se a resposta estratégica da cadeia da carne brasileira às normas alimentares, especialmente aquelas relacionadas a mudanças nas formas de coordenação. Os setores público e privado têm exigido a adequação às normas de segurança alimentar e qualidade mais rí- gidas. A pesquisa empírica do estudo envolve métodos qualitativos. Primeiro, foi feito um levantamento da estrutura da cadeia e, a partir dos resultados, foram realizados estudos de casos em dois canais mercadológicos: exportação e marcas próprias de supermercados. Especificamente, a resposta aos atributos de confiança é um importante determinante do uso das estratégias de cooperação. Os resultados, em uma perspectiva de gestão, sugerem que investimento em alianças e marcas próprias deve ser considerado. Para políticas públicas, os resultados mostram que o setor público deve auxiliar as cadeias de menor porte a atingirem as normas.Este estudio se centra en la respuesta estratégica de la cadena de la carne brasileña a las normas alimentarias, especialmente las que se relacionan con los cambios en las formas de coordinación. Los sectores público y privado han exigido la adecuación a normas más rígidas de seguridad alimentaria y calidad. La investigación empírica del estudio incluye métodos cualitativos. Primero, se realizó un análisis de la estructura de la cadena y, a partir de los resultados, se llevaron a cabo estudios de casos en dos canales mercadológicos: exportación y marcas propias de supermercados. Específicamente, la respuesta a los atributos de confianza es un importante determinante del uso de las estrategias de cooperación. Los resultados, en una perspectiva de gestión, sugieren que la inversión en alianzas y marcas propias debe ser considerada. Para políticas públicas, los resultados muestran que el sector público debe auxiliar las cadenas de menor porte a alcanzar las normas

AS OPÇÕES ESTRATÉGICAS DAS EMPRESAS LOCAIS EM FACE DA GLOBALIZAÇÃO DA ATIVIDADE PRODUTIVA: UM ESTUDO EXPLORATÓRIO NA CADEIA DO LEITE

The settling down of trans-national companies in the country affects brazillian companies’ competitiveness, especially that of those which operate only in the local market. The difficulties in growth or even their survival in the face of the productive activity’s globalization process is the focus of this piece of work, which seeks to deepen the understanding on how companies which act only locally are restructuring themselves strategically, mainly in an agro-industrial chain like that of milk, whose characteristics include concentration of foreign-capital companies. Since this is a theme in its inicial stage of study the authors have opted for the performing of a study of exploratory cases.The analised cases illustrate feasible survival and growth strategies for brazillian companies, starting off with a mapping of the strategical options available to them.local companies, strategical options, milk chain, Agribusiness, Livestock Production/Industries,

Mind the Gap: Lessons from the UK to Brazil about the Roles of TTOs throughout Collaborative R&D Projects

The literature about collaboration for innovation has reported fundamental activities performed by intermediaries. In this paper, universities' technology transfer offices (TTOs) are placed as intermediaries between academic research and the industry. Our study focuses on collaborative research and development (R&D) projects between universities and industry in order to understand the roles of TTOs throughout the whole duration of the project. The main aim of this paper is to identify the roles of TTOs throughout collaborative R&D projects and suggest some lessons for Brazilian TTOs based on the experience of the United Kingdom. Through qualitative case studies in the United Kingdom and Brazil, the analyses show that both TTOs performed critical activities for collaborative R&D projects. Similar activities at both TTOs were the management of partnerships in terms of negotiating contracts and the protection and licensing of intellectual property. Findings also show that the search for partners in the beginning of the project, the pacifier role of the TTO to help mutual understanding, and the active commercialisation of academic research to external partners happened only in the UK case, which may generate implications for TTOs in Brazil.publishedVersio