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Production Contracts and Food Quality: A Transaction Cost Analysis for the Italian Durum Wheat Sector

Author

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  • Angelo Frascarelli

    (Department of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, Italy)

  • Stefano Ciliberti

    (Department of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, Italy)

  • Gustavo Magalhães de Oliveira

    (Center for Organization Studies (CORS), School of Economics, Business and Accounting (FEA), University of São Paulo (USP), Sao Paulo 05508-011, Brazil)

  • Gabriele Chiodini

    (Department of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, Italy)

  • Gaetano Martino

    (Department of Agricultural, Food and Environmental Sciences, University of Perugia, 06121 Perugia, Italy)

Abstract

Agribusiness firms requiring a consistent supply of high quality agricultural raw materials have increasingly adopted production contracts to coordinate their supply chains. The present work is aimed to shed light on the role played by sources of asset specificity and uncertainty related to quality strategies in the diffusion of contractual arrangements within the Italian durum wheat sector. To this purpose, factor analyses and probit regressions are estimated in data collected among durum wheat producers. The findings confirm that the role of asset specificity is negligible in presence of staple crops. Moreover, they reveal that experience, transparency and technological stability are all relevant aspects that reduce uncertainty and, in turn, trigger the adoption of production contracts as a governance solution for durum wheat.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2921-:d:512721
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    2. Stefano Ciliberti & Marcello Stanco & Angelo Frascarelli & Giuseppe Marotta & Gaetano Martino & Concetta Nazzaro, 2022. "Sustainability Strategies and Contractual Arrangements in the Italian Pasta Supply Chain: An Analysis under the Neo Institutional Economics Lens," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    3. Eleonora Sofia Rossi & José A. Zabala & Francesco Caracciolo & Emanuele Blasi, 2023. "The Value of Crop Diversification: Understanding the Factors Influencing Consumers’ WTP for Pasta from Sustainable Agriculture," Agriculture, MDPI, vol. 13(3), pages 1-18, February.
    4. Huashu Wang & Zhenyi Li & H. Holly Wang, 2022. "Does Backward Integration Improve Food Safety of the Tea Industry in China in the Post-COVID-19 Era?," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    5. Carlotta Penone & Elisa Giampietri & Samuele Trestini, 2024. "Exploring farmers’ intention to adopt marketing contracts: empirical insights using the TOE framework," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 12(1), pages 1-19, December.

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