IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v1y1992i1p83-128.html

Strategy and Transaction Costs: The Organization of Distribution in the Carbonated Soft Drink Industry

Author

Listed:
  • Muris, Timothy J
  • Scheffman, David T
  • Spiller, Pablo T

Abstract

This paper analyzes the ongoing transformation of the soft drink distribution of Coca-Cola and Pepsi-Cola from systems of independent bottlers to captive bottling subsidiaries. A transaction cost-based theory is developed.to explain this restructuring. It is postulated that changes in the external environment and the resulting changes in the strategies of Coca-Cola and Pepsi-Cola raised the costs of transacting between them and their independent bottlers. Two types of empirical tests are presented. One exploits the difference in the distribution of Coca-Cola and Pepsi-Cola in the fountain channel. The other consists of statistical analyses of the competitive effects of the move toward captive distribution. Both types of tests support the basic hypotheses. Copyright 1992 by MIT Press.

Suggested Citation

  • Muris, Timothy J & Scheffman, David T & Spiller, Pablo T, 1992. "Strategy and Transaction Costs: The Organization of Distribution in the Carbonated Soft Drink Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(1), pages 83-128, Spring.
    • Handle: RePEc:bla:jemstr:v:1:y:1992:i:1:p:83-128
    DOI: 10.1111/j.1430-9134.1992.00083.x
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. 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.
    2. Anne T. Coughlan, 1985. "Competition and Cooperation in Marketing Channel Choice: Theory and Application," Marketing Science, INFORMS, vol. 4(2), pages 110-129.
    3. Oliver E. Williamson, 2025. "Transaction Cost Economics," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, edition 0, chapter 4, pages 47-71, Springer.
    Full references (including those not matched with items on IDEAS)

    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. Lydia Bals & Jon F. Kirchoff & Kai Foerstl, 2016. "Exploring the reshoring and insourcing decision making process: toward an agenda for future research," Operations Management Research, Springer, vol. 9(3), pages 102-116, December.
    2. Alejandro Agafonow, 2020. "From Hybrid Organizations to Social-purpose Hierarchies: Toward a Transaction Cost Economics of Social Enterprises," Journal of Interdisciplinary Economics, , vol. 32(2), pages 180-199, July.
    3. Dahlgrün, Philipp W. & Bausch, Andreas, 2019. "How Opportunistic Culture Affects Financial Performance in Outsourcing Relationships: A Meta-Analysis," Journal of International Management, Elsevier, vol. 25(1), pages 81-100.
    4. Ranjith Appuhami & Sujatha Perera & Hector Perera, 2011. "Management Controls in Public–Private Partnerships: An Analytical Framework," Australian Accounting Review, CPA Australia, vol. 21(1), pages 64-79, March.
    5. Dekkers, Rob & de Boer, Ronald & Gelsomino, Luca Mattia & de Goeij, Christiaan & Steeman, Michiel & Zhou, Qijun & Sinclair, Scott & Souter, Victoria, 2020. "Evaluating theoretical conceptualisations for supply chain and finance integration: A Scottish focus group," International Journal of Production Economics, Elsevier, vol. 220(C).
    6. Nicole B. Baker & Christian Haddad, 2024. "Private ownership and management control decisions in infrastructure from the perspective of Transaction Cost Theory: Evidence from emerging economies," Economics and Politics, Wiley Blackwell, vol. 36(2), pages 764-791, July.
    7. Luigi Cantone & Pierpaolo Testa & Svend Hollensen & Giuseppe Fabio Cantone, 2019. "Outsourcing New Product Development Fostered By Disruptive Technological Innovation: A Decision-Making Model," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-45, January.
    8. Marta Gancarczyk, 2015. "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 5-31.
    9. Choi, Jongmoo Jay & Ju, Ming & Trigeorgis, Lenos & Zhang, Xiaotian Tina, 2021. "Outsourcing flexibility under financial constraints," Journal of Corporate Finance, Elsevier, vol. 67(C).
    10. Corgnet, Brice & Gächter, Simon & Hernán-González, Roberto, 2025. "The contractual dispute resolution game: Real-effort experiments on contract negotiation and arbitration," Journal of Economic Behavior & Organization, Elsevier, vol. 231(C).
    11. Mehmet Altin, 2017. "A taxonomy of hotel revenue management implementation strategies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(3), pages 246-264, June.
    12. Ouma, Emily & Ochieng, Justus & Dione, Michel & Pezo, Danilo, . "Governance structures in smallholder pig value chains in Uganda: constraints and opportunities for upgrading," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(3).
    13. Arslan, Okan & Archetti, Claudia & Jabali, Ola & Laporte, Gilbert & Grazia Speranza, Maria, 2020. "Minimum cost network design in strategic alliances," Omega, Elsevier, vol. 96(C).
    14. Yuan, Yang & Chu, Zhaofang & Lai, Fujun & Wu, Hao, 2020. "The impact of transaction attributes on logistics outsourcing success: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 219(C), pages 54-65.
    15. Matolcsy, Zoltan & Wakefield, James, 2017. "Multinational headquarter control of wholly owned foreign subsidiaries," The British Accounting Review, Elsevier, vol. 49(3), pages 275-293.
    16. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    17. Setene, Letlama & Jordaan, Daniel du P.S., . "The trade-off between chain performance and fragility considering coordination strategies of agri-food chains: a South African egg chain's case study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3).
    18. Bhattacharya, Ananya & Singh, Prakash J. & Nand, Alka Ashwini, 2015. "Antecedents of buyer opportunistic behavior in outsourcing relationships," International Journal of Production Economics, Elsevier, vol. 166(C), pages 258-268.
    19. Wu, Jiayu & Hu, Yingjie & Liu, Tao & He, Qingsong, 2018. "Value capture in protected areas from the perspective of common-pool resource governance: A case study of Jiuzhai Valley National Park, China," Land Use Policy, Elsevier, vol. 79(C), pages 452-462.
    20. Francesco Giacobbe & Zoltan Matolcsy & James Wakefield & Tom Smith, 2016. "An investigation of wholly-owned foreign subsidiary control through transaction cost economics theory," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 56(4), pages 1041-1070, December.

    More about this item

    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:bla:jemstr:v:1:y:1992:i:1:p:83-128. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    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.