IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/34428.html
   My bibliography  Save this article

Organizational Structure In Agricultural Production Alliances

Author

Listed:
  • Cozzarin, Brian P.
  • Barry, Peter J.

Abstract

The manuscript addresses the choice of organizational form in industrialized hog production. The objectives are to review the relevant theoretical literature on organizational form and create conceptual models of two of the major contractual relationships (alliance and integrator) emerging in the hog sector. Actual contracts are proprietary. Consequently, empirical information is scarce; however, we feel that the application of conceptual models of contracts can aid in making performance comparisons. The goal is to give some prescription as to which alternative organizational and contractual forms will perform the best. The models developed in this paper derive optimal contracts and show that an integrator organizational form (one party as residual claimant) may have advantages over an alliance.

Suggested Citation

  • Cozzarin, Brian P. & Barry, Peter J., 1998. "Organizational Structure In Agricultural Production Alliances," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 1(2), pages 1-17.
    • Handle: RePEc:ags:ifaamr:34428
    DOI: 10.22004/ag.econ.34428
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/34428/files/01020149.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.34428?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Maness, Robert, 1996. "Incomplete contracts and the choice between vertical integration and franchising," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 101-115, October.
    2. Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June.
    3. Norton, Seth W, 1988. "An Empirical Look at Franchising as an Organizational Form," The Journal of Business, University of Chicago Press, vol. 61(2), pages 197-218, April.
    4. Robert P. King, 1992. "Management and Financing of Vertical Coordination in Agriculture: An Overview," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1217-1218.
    5. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    6. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    7. Barry, Peter J., 1995. "Industrialization Of U.S. Agriculture: Policy, Research, And Education Needs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-8, April.
    8. HOLMSTROM, Bengt, 1979. "Moral hazard and observability," LIDAM Reprints CORE 379, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    10. Mathewson, G Frank & Winter, Ralph A, 1985. "The Economics of Franchise Contracts," Journal of Law and Economics, University of Chicago Press, vol. 28(3), pages 503-526, October.
    11. Antony W. Dnes, 2011. "Franchise Contracts," Chapters, in: Gerrit De Geest (ed.), Contract Law and Economics, chapter 18, Edward Elgar Publishing.
    12. Lawrence, John D. & Kliebenstein, James, 1995. "Contracting and Vertical Coordination in the United States Pork Industry," Staff General Research Papers Archive 5050, Iowa State University, Department of Economics.
    13. Allen M. Featherstone & Bruce J. Sherrick, 1992. "Financing Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1232-1237.
    14. Kliebenstein, James B. & Lawrence, John D., 1995. "Contracting and Vertical Coordination in the United States Pork Industry," ISU General Staff Papers 199507010700001264, Iowa State University, Department of Economics.
    15. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    16. Martin, Robert E, 1988. "Franchising and Risk Management," American Economic Review, American Economic Association, vol. 78(5), pages 954-968, December.
    17. Joan Fulton & Jeffrey Gillespie, 1995. "Emerging Business Organizations in a Rapidly Changing Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1219-1224.
    18. Williamson, Oliver E. & Winter, Sidney G. (ed.), 1993. "The Nature of the Firm: Origins, Evolution, and Development," OUP Catalogue, Oxford University Press, number 9780195083569.
    19. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
    20. Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer.
    21. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
    22. V. James Rhodes, 1995. "The Industrialization of Hog Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(2), pages 107-118.
    23. Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-233, April.
    24. Koehler, Bob & Lazarus, William F. & Buhr, Brian L., 1996. "Swine Production Networks In Minnesota: Resources For Decision Making," Staff Papers 14232, University of Minnesota, Department of Applied Economics.
    25. Peter J. Barry & Sonka Steven T. & Kaouthar Lajili, 1992. "Vertical Coordination, Financial Structure, and the Changing Theory of the Firm," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1219-1225.
    26. Emerson M. Babb, 1992. "Management and Financing of Vertical Coordination in Agriculture: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1238-1239.
    27. Barry, Peter J., 1995. "Industrialization of U.S. Agriculture: Policy, Research, and Education Needs," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(1), pages 128-135, April.
    28. Michael Boehlje, 1995. "Vertical Coordination and Structural Change in the Pork Industry: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1225-1228.
    29. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    30. Assaf Razin & Efraim Sadka (ed.), 1987. "Economic Policy in Theory and Practice," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-18584-9.
    31. Kliebenstein, James & Lawrence, John D., 1995. "Contracting and Vertical Coordination in the United States Pork Industry," ISU General Staff Papers 199501010800001264, Iowa State University, Department of Economics.
    32. James B. Kliebenstein & John D. Lawrence, 1995. "Contracting and Vertical Coordination in the United States Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1213-1218.
    33. Eric Rasmusen, 1987. "Moral Hazard in Risk-Averse Teams," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 428-435, Autumn.
    34. Alan B. Krueger, 1991. "Ownership, Agency, and Wages: An Examination of Franchising in the Fast Food Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(1), pages 75-101.
    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. Cozzarin, Brian P. & Westgren, Randall E., 2000. "Rent Sharing Mechanisms In Production Alliances," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-14.
    2. Hudson, William T. & Purcell, Wayne D., 2001. "Risk Sharing and Compensation Guides for Managers and Members of Verticle Beef Alliances," Staff Papers 232386, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    3. Chunyang Han & Amjad Pervez & Jingqiong Wu & Xiaojing Shen & Dezhi Zhang, 2020. "Home-Delivery-Oriented Agri-Food Supply Chain Alliance: Framework, Management Strategies, and Cooperation Stability Control," Sustainability, MDPI, vol. 12(16), pages 1-34, August.

    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. Francine Lafontaine & Margaret E. Slade, 1998. "Incentive Contracting and the Franchise Decision," NBER Working Papers 6544, National Bureau of Economic Research, Inc.
    2. Arruñada Benito & Garicano Luis & Vázquez Luis, 2005. "Completing Contracts Ex Post: How Car Manufacturers Manage Car Dealers," Review of Law & Economics, De Gruyter, vol. 1(1), pages 149-173, April.
    3. Jell-Ojobor, Maria & Windsperger, Josef, 2014. "The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model," Journal of International Management, Elsevier, vol. 20(2), pages 153-187.
    4. Michael, Steven C., 1996. "To franchise or not to franchise: An analysis of decision rights and organizational form shares," Journal of Business Venturing, Elsevier, vol. 11(1), pages 57-71, January.
    5. Josef Windsperger, 2013. "The governance of franchising networks," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 27, Edward Elgar Publishing.
    6. Norton, Seth W., 1995. "Is franchising a capital structure issue?," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 75-101, October.
    7. Arrunada, Benito & Garicano, Luis & Vazquez, Luis, 2001. "Contractual Allocation of Decision Rights and Incentives: The Case of Automobile Distribution," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 17(1), pages 257-284, April.
    8. Francine Lafontaine & Kathryn L. Shaw, 1999. "The Dynamics of Franchise Contracting: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 1041-1080, October.
    9. Francine Lafontaine & Kathryn L. Shaw, 2005. "Targeting Managerial Control: Evidence from Franchising," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 131-150, Spring.
    10. Scott Shane, 2001. "Organizational Incentives and Organizational Mortality," Organization Science, INFORMS, vol. 12(2), pages 136-160, April.
    11. Maness, Robert, 1996. "Incomplete contracts and the choice between vertical integration and franchising," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 101-115, October.
    12. Kranz, Sebastian & Lewin-Solomons, Shira B., 2008. "Decision Structures in Franchise Systems of the Plural Form," Bonn Econ Discussion Papers 8/2008, University of Bonn, Bonn Graduate School of Economics (BGSE).
    13. Klein, Benjamin, 1995. "The economics of franchise contracts," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 9-37, October.
    14. Manuel González & Benito Arruñada & Alberto Fernández, 1997. "La decisión de subcontratar: el caso de las empresas constructoras," Investigaciones Economicas, Fundación SEPI, vol. 21(3), pages 501-521, September.
    15. Antonio Navarro García & Enrique Carlos Díez de Castro & Francisco Javier Rondán Cataluña, 2006. "Franchisor Types In Portuguese Franchising," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 97-114.
    16. Jeffrey M. Gillespie & Joan R. Fulton, 2001. "A Markov chain analysis of the size of hog production firms in the United States," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 557-570.
    17. Affuso, L., 2000. "Intra-Firm Retail Contracting: Survey Evidence from the UK'," Cambridge Working Papers in Economics 0022, Faculty of Economics, University of Cambridge.
    18. Lutz, Nancy A., 1995. "Ownership rights and incentives in franchising," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 103-131, October.
    19. Fladmoe-Lindquist, Karin, 1996. "International franchising: Capabilities and development," Journal of Business Venturing, Elsevier, vol. 11(5), pages 419-438, September.
    20. Martinez, Stephen W., 2002. "Vertical Coordination Of Marketing Systems: Lessons From The Poultry, Egg, And Pork Industries," Agricultural Economic Reports 34051, United States Department of Agriculture, Economic Research Service.

    More about this item

    Keywords

    Livestock Production/Industries;

    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:ags:ifaamr:34428. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.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.