The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics

Banterle, Alessandro; Stranieri, Stefanella

doi:10.1016/j.foodpol.2008.06.002

Cited by 109 publications

(95 citation statements)

References 23 publications

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“…The centralization of the IPM system results in retailers assuming a leadership role within the supply chain. This means that the retailer has to manage the activities of the other agents, design the dyadic contracts, coordinate the information, and arrange the controls [27].…”

Section: Resultsmentioning

confidence: 99%

“…From a chain network point of view, the implementation of an IPM system strengthens vertical relations due to different aspects: the increased information transparency concerning the quality characteristics of food; the increase of liability among agents of the food supply chain; and the introduction of new contract incentives and safeguard conditions via supply chain agreements [21,26,27].…”

Section: The Integrated Pest Management System: Legislation and Economentioning

confidence: 99%

“…Therefore, IPM leads to a redesign of the supply chain's vertical organization. According to North [29,30], this system can be considered as an institution that may have a significant impact on transaction characteristics and costs [27]. North conceives of an institution as a set of -humanly devised constraints that structure political, economic and social interaction.…”

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

“…The transaction uncertainty may derive from several factors, such as the information asymmetry between buyer and seller, the stochastic nature of some events or the bounded rationality of individuals [21]. The implementation of an IPM system should provide a decrease in the degree of transaction uncertainty because of the greater amount of information exchanged within the supply chain [27]. This transparency can be connected to: a reduction in the number of agents involved in the system; more direct relationships between farmers or manufacturers with retailers; and the increase of information exchanges along the supply chain.…”

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

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Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

Banterle

Stranieri

2013

Sustainability

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Private standards are among the main measures that can be implemented to differentiate food production. Retailers have been particularly active in setting food safety and quality systems for the development of their private labels. The purpose of this paper is to identify the effects of introducing measures that guarantee the environmental sustainability of food production on vertical dyadic relations. We focus our attention on the adoption of integrated pest management (IPM) systems that are designed by retailers to support private label products, with the aim of studying how these systems affect the governance structure of transactions between retailer and farmer/processor. Transaction cost analysis is used as theoretical framework to assess changes in vertical coordination after the adoption of an IPM system. Four case studies related to food retailers in Italy were analyzed to identify changes in transaction characteristics, costs, and governance that are related to the adoption of this system. The results show that the introduction of an IPM system leads to an increase of transaction asset specificity (i.e., especially of human and material asset specificity) among the agents of the supply chain, and a decrease of the degree of transaction uncertainty. The variations in transaction characteristics determine changes in transaction costs. These changes lead to new hybrid forms of transaction governance, namely dyadic contracts, and a centralized organization of vertical relationships.

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Section: Resultsmentioning

confidence: 99%

Section: The Integrated Pest Management System: Legislation and Economentioning

confidence: 99%

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

Section: Ipm System and Transaction Cost Analysismentioning

confidence: 99%

See 2 more Smart Citations

Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

Banterle

Stranieri

2013

Sustainability

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“…Firstly, if benefits related to food crisis management are taken into consideration, traceability (i) can allow for compliance with the existing regulation (Storøy et al, 2013;Resende-Filho and Hurley, 2012); (ii) is recognised as a mechanism for safety (Kher et al, 2010;Alfaro and Ràbade, 2009;Regattieri et al, 2007) and quality (Lxe, 2011;Kher et al, 2010); (iii) can lead to a cost reduction when recall of hazardous product is needed (Storøy et al, 2013;Banterle and Stranieri, 2008); and (iv) can enable rapid recall or withdrawals of products in case of a food crises (Folinas et al, 2006). The benefits of traceability can be perceived both in term of wider advantages for the supply chain, which becomes more competitive and efficient (Banterle and Stranieri, 2008;Bosona and Gebresenbet, 2013;Canavari et al, 2010;Lxe, 2011;Regattieri et al, 2007), and in term of advantages for the single firm, such as: (i) cost reduction (Bosona and Gebresenbet, 2013) and improvements in efficiently (Fritz and Schiefer, 2009) of logistics; (ii) improvement in inventory management (Lxe, 2011;Alfaro and Ràbade, 2009); (iii) technological contribution (Bosona and Gebresenbet, 2013); and (iv) competences development (Bosona and Gebresenbet, 2013). Furthermore, strategically, traceability information can have a positive impact as a marketing tool through product differentiation in term of specific product qualities and safety standards (Storøy et al, 2013;Liao et al, 2011;Banterle and Stranieri, 2008); a tool to access markets that require higher traceability standards , and to protect the brand image by showing transparency of food production .…”

Section: Benefits and Barriers Of Traceabilitymentioning

confidence: 99%

Food supply chain: are UK SMEs aware of concept, drivers, benefits and barriers, and frameworks of traceability?

Mattevi

Jones

2016

British Food Journal

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Purpose -In this paper the degree of understanding of traceability concept, drivers, systems' characteristics, benefits and barriers, and frameworks is tested with focus on UK small and medium businesses (SMEs) that operate in the food supply chain (FSC). Design/methodology/approach -This study employs a survey strategy by means of a questionnaire that was sent to food and drink companies operating in the FSC. 164 SMEs answered the questionnaire. Answers were analysed by means of frequency distributions, contingency tables, coding, and pattern matching. Findings -UK SMEs appear to have a moderate understanding of the definition of traceability. The main drivers for traceability implementation are product safety and quality, even more than regulation. It is also found that SMEs do not consider technology as driver to implement traceability. In term of frameworks employed, about half of the SMEs stated that they were regulatory compliant, and followed industry standards. Furthermore, in term of traceability systems' characteristics, one out of three companies have a basic system in place (only regulatory compliant), while two out of three have a more sophisticated system, with many companies voluntarily tracing the material during the production process, while chain traceability appears not to be widely implemented. Finally, it is felt that the benefits of traceability outweigh the barriers/disadvantages, with the main benefits found in the area of crisis management. Nonetheless, it appears that many benefits are still unknown to SMEs, especially in relation to the firm's operations/strategy. Some implications for government and managers are suggested. Originality/value -This study fills the gap found in the literature where few recent academic papers focused attention on SMEs awareness of traceability in the FSC.

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Voluntary standards as meso‐institutions: A Bayesian investigation of their relationships with transaction governance and risks

Soregaroli

Varacca

Ricci

et al. 2022

Applied Eco Perspectives Pol

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Meso‐institutions offer a promising theoretical approach for assessing the way in which firms govern their activities and transactions while embedded in the macro‐institutional environment. The concept of meso‐institutions also offers theoretical support when evaluating a wide variety of voluntary standards that have been introduced within value chains in recent decades. Such tools can be considered meso‐institutions because of their features, and because of their role in translating general normative rules into specific mechanisms that delineate the domain of activities of supply chain agents. While various aspects of meso‐institutions have been investigated, little is known about their relationship with micro‐level structures and the determinants of firm's voluntary participation. The present paper investigates the association between a private standard, different forms of transaction governance in the supply chain, and the role that internal and external risks play in voluntary participation in the standard. The analysis draws upon secondary data taken from a representative sample of firms that form part of the European soybean supply chain. Our findings show that firms that participate in this standard have fewer hybrid forms and higher levels of spot markets. This suggests that some of the functions of hybrid forms are fulfilled by the meso‐institution. The results also show that risks associated with firm's behavioral uncertainty are more conducive to the participation in the standard than environmental‐related risks.

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The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics

Cited by 109 publications

References 23 publications

Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

Sustainability Standards and the Reorganization of Private Label Supply Chains: A Transaction Cost Perspective

Food supply chain: are UK SMEs aware of concept, drivers, benefits and barriers, and frameworks of traceability?

Voluntary standards as meso‐institutions: A Bayesian investigation of their relationships with transaction governance and risks

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