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Effects of the Swiss retailers' strategy on the governance structure of the fresh food products supply chains

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  • Sophie Réviron

    (Institute of Agricultural and Food Economics, Swiss Federal Institute of Technology (ETH), IER-AR, case postale 110, 1015 Lausanne, Switzerland)

  • Jean-Marc Chappuis

    (Institute of Agricultural and Food Economics, Swiss Federal Institute of Technology (ETH), IER-AR, case postale 110, 1015 Lausanne, Switzerland)

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    Abstract

    On the initiative of the two main retailers, the structure of the Swiss food supply chains has changed in depth, with the construction of “normed systems,” characterized by quality insurance guarantees and of “partnerships” with alliances of producers and processing companies. These new forms of vertical organizations are different types of hybrid forms, according to New Institutional Economic theory. We highlight that these new organizations were chosen because of the lower degree of acceptance by the retailers of the asymmetry of information on quality, generally to their discredit, and in order to protect their reputation. Nevertheless, even in the case of products where the risk of acquiring a bad batch is particularly problematic for retailers, the latter do not seek to create bilateral governances systems directly with the producers, a situation that can lead to high tensions with the producers. [EconLit citations: Q130, D810.] © 2005 Wiley Periodicals, Inc. Agribusiness 21: 237-252, 2005.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 21 (2005)
    Issue (Month): 2 ()
    Pages: 237-252

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    Handle: RePEc:wly:agribz:v:21:y:2005:i:2:p:237-252

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    Cited by:
    1. Vuylsteke, Anne & Van Huylenbroeck, Guido, 2008. "Coordination of collective action in the agro-food sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium, European Association of Agricultural Economists 44263, European Association of Agricultural Economists.
    2. Martino, Gaetano, 2010. "Trust, contracting, and adaptation in agri-food hybrid structure," MPRA Paper 37617, University Library of Munich, Germany.

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