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

  • 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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    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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    File URL: http://hdl.handle.net/10.1002/agr.20045
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    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
    Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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