IDEAS home Printed from https://ideas.repec.org/p/ags/eaa149/244775.html
   My bibliography  Save this paper

Technical knowledge and production contracts between a company and its suppliers: lessons from a French case-study

Author

Listed:
  • Cholez, Celia
  • Magrini, Marie-Benoit
  • Galliano, Danielle

Abstract

Changing farming practices to improve crop diversification requires knowledge acquisition and transfer between the actors involved. Drawing on the theory of transaction costs and the knowledge economy, this article analyses the ways in which production contracts between an agri-feed company (the buyer) and storage organisations (suppliers) promote the transfer of technical knowledge needed for growing a minor crop in France. Semi-structured interviews with the company and its suppliers showed that there was a considerable need of technical knowledge for drawing up the contract, and that collectively organising the contract fostered knowledge transfer among actors.

Suggested Citation

  • Cholez, Celia & Magrini, Marie-Benoit & Galliano, Danielle, 2016. "Technical knowledge and production contracts between a company and its suppliers: lessons from a French case-study," 149th Seminar, October 27-28, 2016, Rennes, France 244775, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa149:244775
    DOI: 10.22004/ag.econ.244775
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/244775/files/Cholez%20et%20al_149EAAE_Rennes.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.244775?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. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 421-440, September.
    2. Michael Sykuta & Harvey S. James, 2004. "Organizational Economics Research in the U.S. Agricultural Sector and the Contracting and Organizations Research Institute," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 756-761.
    3. Emmanuel Raynaud & Loïc Sauvée, 2000. "Signes collectifs de qualité et structures de gouvernance," Économie rurale, Programme National Persée, vol. 258(1), pages 101-112.
    4. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    5. Silke Boger, 2001. "Quality and contractual choice: a transaction cost approach to the polish hog market," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(3), pages 241-262, October.
    6. Michael Sykuta & Joseph Parcell, 2003. "Contract Structure and Design in Identity-Preserved Soybean Production," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 332-350.
    7. repec:dau:papers:123456789/3474 is not listed on IDEAS
    8. Zora Bouamra-Mechemache & Sabine Duvaleix-Treguer & Aude Ridier, 2014. "Contrats et modes de coordination en agriculture," Working Papers SMART 14-07, INRAE UMR SMART.
    9. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    10. Erin Anderson & David C. Schmittlein, 1984. "Integration of the Sales Force: An Empirical Examination," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 385-395, Autumn.
    11. Eric Brousseau & Jean-Michel Glachant, 2000. "Introduction : Économie des contrats et renouvellements de l'analyse économique," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 23-50.
    12. Cowan, Robin & David, Paul A & Foray, Dominique, 2000. "The Explicit Economics of Knowledge Codification and Tacitness," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(2), pages 211-253, June.
    13. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    14. Carpentier, Alain & Gohin, Alexandre, 2015. "On the economic theory of crop rotations: value of the crop rotation effects and implications on acreage choice modeling," Working Papers 205299, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    15. Bengt-ake Lundvall & Bjorn Johnson, 1994. "The Learning Economy," Industry and Innovation, Taylor & Francis Journals, vol. 1(2), pages 23-42.
    16. Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), 2012. "Handbook of Knowledge and Economics," Books, Edward Elgar Publishing, number 3101.
    17. Richard Arena & Agnès Festré & Nathalie Lazaric, 2012. "Handbook of Knowledge and Economics," Post-Print halshs-00721485, HAL.
    18. Claude Ménard & Peter G. Klein, 2004. "Organizational Issues in the Agrifood Sector: Toward a Comparative Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 750-755.
    19. repec:dau:papers:123456789/7520 is not listed on IDEAS
    20. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    21. Ridier, Aude & Chaib, Karim & Roussy, Caroline, 2016. "A Dynamic Stochastic Programming model of crop rotation choice to test the adoption of long rotation under price and production risks," European Journal of Operational Research, Elsevier, vol. 252(1), pages 270-279.
    22. Jongick Jang & Frayne Olson, 2010. "The role of product differentiation for contract choice in the agro-food sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(2), pages 251-273, June.
    23. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    24. Magrini, Marie-Benoit & Anton, Marc & Cholez, Célia & Corre-Hellou, Guenaelle & Duc, Gérard & Jeuffroy, Marie-Hélène & Meynard, Jean-Marc & Pelzer, Elise & Voisin, Anne-Sophie & Walrand, Stéphane, 2016. "Why are grain-legumes rarely present in cropping systems despite their environmental and nutritional benefits? Analyzing lock-in in the French agrifood system," Ecological Economics, Elsevier, vol. 126(C), pages 152-162.
    25. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2010. "Relational mechanisms, formal contracts, and local knowledge acquisition by international subsidiaries," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 349-370, April.
    26. Christian Fischer & Monika Hartmann & Nikolai Reynolds & Philip Leat & César Revoredo-Giha & Maeve Henchion & Luis Miguel Albisu & Azucena Gracia, 2009. "Factors influencing contractual choice and sustainable relationships in European agri-food supply chains," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(4), pages 541-569, December.
    27. Brousseau,Éric & Glachant,Jean-Michel (ed.), 2008. "New Institutional Economics," Cambridge Books, Cambridge University Press, number 9780521876605.
    28. Brousseau,Éric & Glachant,Jean-Michel (ed.), 2008. "New Institutional Economics," Cambridge Books, Cambridge University Press, number 9780521700160.
    29. Emmanuel Raynaud & Loïc Sauvée & Egizio Valceschini, 2009. "Aligning branding strategies and governance of vertical transactions in agri-food chains," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(5), pages 835-868, October.
    30. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    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. Bignebat, C., 2018. "Learning process in marketing contract choice: the case of cereals in the Paris Basin," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277233, International Association of Agricultural Economists.

    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. Stefano Ciliberti & Simone Del Sarto & Angelo Frascarelli & Giulia Pastorelli & Gaetano Martino, 2020. "Contracts to Govern the Transition towards Sustainable Production: Evidence from a Discrete Choice Analysis in the Durum Wheat Sector in Italy," Sustainability, MDPI, vol. 12(22), pages 1-14, November.
    2. Julia Jouan & Aude Ridier & Matthieu Carof, 2019. "Economic Drivers of Legume Production: Approached via Opportunity Costs and Transaction Costs," Sustainability, MDPI, vol. 11(3), pages 1-14, January.
    3. Argandoña, Antonio, 2010. "From action theory to the theory of the firm," IESE Research Papers D/855, IESE Business School.
    4. John Finch & Nicola Dinnei, 2001. "Capturing Knightian Advantages of Large Business Organisations Through Group Decision-making Processes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 379-403.
    5. Marianne Hubeau & Fleur Marchand & Guido Van Huylenbroeck, 2017. "Sustainability Experiments in the Agri-Food System: Uncovering the Factors of New Governance and Collaboration Success," Sustainability, MDPI, vol. 9(6), pages 1-23, June.
    6. Gibbons, Robert, 2005. "Four forma(lizable) theories of the firm?," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 200-245, October.
    7. Banterle, Alessandro & Stranieri, Stefanella, 2008. "The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics," Food Policy, Elsevier, vol. 33(6), pages 560-569, December.
    8. Der-Fang Hung, 2015. "Sustained Competitive Advantage and Organizational Inertia: The Cost Perspective of Knowledge Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 769-789, December.
    9. Blaeschke, Frédéric & Haug, Peter, 2014. "Does Intermunicipal Cooperation Increase Efficiency? Evidence from the Hessian Wastewater Sector," IWH Discussion Papers 11/2014, Halle Institute for Economic Research (IWH).
    10. Angelo Frascarelli & Stefano Ciliberti & Gustavo Magalhães de Oliveira & Gabriele Chiodini & Gaetano Martino, 2021. "Production Contracts and Food Quality: A Transaction Cost Analysis for the Italian Durum Wheat Sector," Sustainability, MDPI, vol. 13(5), pages 1-12, March.
    11. James Jr., Harvey S., 1998. "Are employment and managerial control equivalent? Evidence from an electronics producer," Journal of Economic Behavior & Organization, Elsevier, vol. 36(4), pages 447-471, September.
    12. Kaiser, Ulrich & Grimpe, Christoph, 2008. "Gains and Pains from Contract Research: A Transaction and Firm-level Perspective," ZEW Discussion Papers 08-002, ZEW - Leibniz Centre for European Economic Research.
    13. Uwe Cantner, 2017. "Foundations of Economic Change: An Extended Schumpeterian Approach," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 9-49, Springer.
    14. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    15. Jordi Perdiguero, 2011. "Vertical relations and local competition: an empirical approach," IREA Working Papers 201124, University of Barcelona, Research Institute of Applied Economics, revised Dec 2011.
    16. Weseen, Simon & Hobbs, Jill & Kerr, William A., 2014. "Reducing Hold-up Risks in Ethanol Supply Chains: A Transaction Cost Perspective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(2), pages 1-24, May.
    17. Averyt, William F. & Ramagopal, K., 1999. "Strategic disruption and transaction cost economics: The case of the American auto industry and Japanese competition," International Business Review, Elsevier, vol. 8(1), pages 39-53, January.
    18. Naima Saeed & Dong-Wook Song & Otto Andersen, 2018. "Governance mode for port congestion mitigation: A transaction cost perspective," Netnomics, Springer, vol. 19(3), pages 159-178, December.
    19. Peter G. Klein & Michael E. Sykuta, 2010. "Editors’ Introduction," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 1, Edward Elgar Publishing.
    20. Susan Velasco Portillo, 2015. "El agotamiento del régimen fordista boliviano y la financiarización de YPFB," Revista Lebret, Universidad Santo Tomás - Bucaramanga, vol. 7, pages 308-325, December.

    More about this item

    Keywords

    Agricultural and Food Policy; Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:eaa149:244775. 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/eaaeeea.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.