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Vertical organization of agribusinesses in transition economies: Hungarian production systems or agricultural franchising?

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  • Dirk W. Rudolph

    (Institute of Agricultural Development in Central and Eastern Europe, Magdeburger Str. 1, D-06112 Halle (Saale), Germany)

Abstract

This article develops a modified version of franchising which may serve as an alternative form of vertically organizing agricultural production and service firms in transition economies. The concept of agricultural franchising as presented here can be seen as a proposal for restructuring the vertical organization of the agricultural sector in transition economies. Since agricultural franchising would be a contract innovation if adopted, that concept will be compared with Hungarian production systems, which are closest in design to agricultural franchising. Based on this comparison some tentative conclusions about the potential feasibility of agricultural franchising for transition economies will be drawn. © 1999 John Wiley & Sons, Inc.

Suggested Citation

  • Dirk W. Rudolph, 1999. "Vertical organization of agribusinesses in transition economies: Hungarian production systems or agricultural franchising?," Agribusiness, John Wiley & Sons, Ltd., vol. 15(1), pages 25-40.
    • Handle: RePEc:wly:agribz:v:15:y:1999:i:1:p:25-40
    DOI: 10.1002/(SICI)1520-6297(199924)15:1<25::AID-AGR2>3.0.CO;2-J
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    References listed on IDEAS

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    1. Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June.
    2. S.R. Johnson & Aziz Bouzaher & Alicia Carriquiry & Helen Jensen & P.G. Lakshminarayan, 1994. "Production Efficiency and Agricultural Reform in Ukraine," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 629-635.
    3. Antony W. Dnes, 2011. "Franchise Contracts," Chapters, in: Gerrit De Geest (ed.), Contract Law and Economics, chapter 18, Edward Elgar Publishing.
    4. Richard T. Rogers & Richard J. Sexton, 1994. "Assessing the Importance of Oligopsony Power in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(5), pages 1143-1150.
    5. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    6. Kallfass, Herrmann H, 1993. "Kostenvorteile durch vertikale Integration im Agrarsektor," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 42(06).
    7. Csaki, Csaba & Lerman, Zvi, 1994. "Land Reform and Farm Sector Restructuring in the Former Socialist Countries in Europe," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 21(3-4), pages 553-576.
    8. James A. Brickley & Frederick H. Dark & Michael S. Weisbach, 1991. "An Agency Perspective on Franchising," Financial Management, Financial Management Association, vol. 20(1), Spring.
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    Cited by:

    1. Sukhpal Singh, 2015. "Agribusiness Franchising in India: Experience and Potential," Working Papers id:6424, eSocialSciences.
    2. Imre Ferto & Gabor G. Szabo, 2002. "Vertical Co-ordanitaion in Transition Agriculture: a Hungarian Cooperative Case Study," CERS-IE WORKING PAPERS 0210, Institute of Economics, Centre for Economic and Regional Studies.
    3. Zoltán Bakucs, Lajos & Fertő, Imre & Szabó, Gábor G., 2010. "Contractual relationships in the Hungarian milk sector," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52700, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    4. Fertő, Imre & Szabó G., Gábor, 2004. "Értékesítési csatornák választása a magyar zöldség-gyümölcs szektorban. Esettanulmány [The choice of supply channels in the Hungarian fruit and vegetable sector - a case study]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 77-89.
    5. Bardos, Krisztina & Ferto, Imre, 2006. "The Contract Choice of Retailers in Hungarian Beef Sector," 99th Seminar, February 8-10, 2006, Bonn, Germany 7746, European Association of Agricultural Economists.

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