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The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics

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  • Banterle, Alessandro
  • Stranieri, Stefanella

Abstract

This paper analyses the effects of voluntary traceability on vertical relationships within food supply chains using a transaction cost perspective. The analysis makes reference to the Italian situation where the national standard organization has introduced a private standard for traceability that provides a higher degree of information associated with the individual product than the European mandatory traceability system. A survey was conducted by questionnaire to assess changes in transaction characteristics, costs and governance after the introduction of voluntary traceability. The sample represents all Italian firms applying this standard. Factorial and cluster analyses were applied to find the different reorganizations of transactions. The results highlight an increase in asset specificity and a decrease in the uncertainty level throughout the supply chains. The introduction of voluntary traceability shows increased vertical coordination for firms that previously used oral agreements and variation in transactions conditions for firms using contracts. Instead vertically integrated firms do not reveal any variation in the governance of transactions as they are already internally safeguarded.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 33 (2008)
Issue (Month): 6 (December)
Pages: 560-569

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Handle: RePEc:eee:jfpoli:v:33:y:2008:i:6:p:560-569

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Traceability Private standard Vertical coordination Transaction costs Food supply chain;

References

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  8. Banterle, Alessandro & Stranieri, Stefanella & Baldi, Lucia, 2006. "Voluntary Traceability and Transaction Costs: An Empirical Analysis in the Italian Meat Processing Supply Chain," 99th Seminar, February 8-10, 2006, Bonn, Germany 7722, European Association of Agricultural Economists.
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Citations

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Cited by:
  1. Banterle, Alessandro & Souza Monteiro, Diogo M. & Stranieri, Stefanella, 2009. "Does traceability play a role in retailer’s strategies for private labels?," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 50933, Agricultural Economics Society.
  2. Danielle Galliano & Luis Orozco, 2013. "New Technologies and Firm Organization: The Case of Electronic Traceability Systems in French Agribusiness," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 22-47, January.
  3. Heyder, Matthias & Theuvsen, Ludwig & Hollmann-Hespos, Thorsten, 2012. "Investments in tracking and tracing systems in the food industry: A PLS analysis," Food Policy, Elsevier, vol. 37(1), pages 102-113.
  4. Alessandro Banterle & Stefanella Stranieri, 2013. "Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective," Sustainability, MDPI, Open Access Journal, vol. 5(12), pages 5272-5288, December.
  5. Saak, Alexander E., 2013. "Traceability and Reputation in Supply Chains," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149988, Agricultural and Applied Economics Association.

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