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Product specification and agribusiness chain coordination: introducing the coordination differential concept

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  • Altair Dias de Moura

    (Departamento de Economia Rural, Universidade Federal de Viçosa, Av. P.H. Rolfs s|n, Viçosa, MG, Brazil CEP: 36570-000, Brazil)

  • Sandra Martin

    (Agriculture and Life Sciences Division, P.O. Box 84, Lincoln University, Canterbury, New Zealand)

  • Diane Mollenkopf

    (Department of Marketing & Logistics, 323 Stokely Management Center, University of Tennessee, Knoxville, TN)

Abstract

As customers increasingly demand more specific products, firms are adopting new business approaches to satisfy customers and cope with competition. Efforts to satisfy ever more demanding markets appear to be associated with increased chain coordination, yet the relationship between these two factors is unclear. This research addresses the factors that affect chain coordination, focusing on the management of business processes to meet product specifications for customers. Five fresh meat New Zealand chains were the focus of multiple case study research. Results suggest that chains use different strategies and coordination mechanisms to deliver desired product specifications. More important, while product specifications are related to chain coordination as expected, the relationship is mediated by the coordination differential-the type and amount of effort that firms employ in their business processes to achieve the desired specifications. The nature and implication of the coordination differential concept are discussed. [L140, L150, L170]. © 2009 Wiley Periodicals, Inc.

Suggested Citation

  • Altair Dias de Moura & Sandra Martin & Diane Mollenkopf, 2009. "Product specification and agribusiness chain coordination: introducing the coordination differential concept," Agribusiness, John Wiley & Sons, Ltd., vol. 25(1), pages 112-127.
  • Handle: RePEc:wly:agribz:v:25:y:2009:i:1:p:112-127 DOI: 10.1002/agr.20182
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    References listed on IDEAS

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    1. Robert P. King & Paul F. Phumpiu, 1996. "Reengineering the Food Supply Chain: The ECR Initiative in the Grocery Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1181-1186.
    2. Thomas L. Sporleder & Peter D. Goldsmith, 2001. "Alternative Firm Strategies for Signaling Quality in the Food System," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 591-604, December.
    3. Thomas L. Sporleder, 1992. "Managerial Economics of Vertically Coordinated Agricultural Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(5), pages 1226-1231.
    4. Peterson, H. Christopher & Wysocki, Allen F. & Harsh, Stephen B., 2001. "Strategic Choice Along The Vertical Coordination Continuum," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 4(02).
    5. Saxowsky, David M. & Duncan, Marvin R., 1998. "Understanding Agriculture'S Transition Into The 21st Century: Challenges, Opportunities, Consequences And Alternatives," Agricultural Economics Miscellaneous Reports 23112, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Sterns, James A. & Schweikhardt, David B. & Peterson, H. Christopher, 1998. "Using Case Studies As An Approach For Conducting Agribusiness Research," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 1(03).
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    Cited by:

    1. Granoszewski, Karol & Spiller, Achim, 2013. "Vertragliche Zusammenarbeit bei der energetischen Biomasselieferung: Einstellungen und Bindungsbereitschaften von deutschen Landwirten," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156131, German Association of Agricultural Economists (GEWISOLA).

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