| Article ID: | iaor20063397 |
| Country: | United Kingdom |
| Volume: | 1 |
| Issue: | 4 |
| Start Page Number: | 311 |
| End Page Number: | 330 |
| Publication Date: | Oct 2005 |
| Journal: | International Journal of Logistics Systems and Management |
| Authors: | Rigatto Paulo, Padula Antonio D., Larson Donald W. |
| Keywords: | organization |
What are the causes and conditions that lead to the existence of different Vertical Coordination (VC) structures within the same industry? This study aims to identify, characterise and analyse the varying forms of VC practised in the 11 firms that comprise the peach canning industry in Rio Grande do Sul (RGS), Brazil. The results reveal that the most relevant factors that influence the choice of VC structure are transactional and resources. Higher levels of uncertainty and opportunism (transaction factors) lead firms to adopt more hierarchical VC structures (own production). Organisational resources (capacities and competencies) are shown to have a strong impact on the adopted, more integrated VC structure. Greater capital availability moves firms towards hierarchical VC. Better quality intangible resources (managerial competencies) in firms facilitate the development of more integrated relationships with suppliers driving them to a Supply Chain Management type.