Governance and Coordination in Brazilian Beef Alliances: An Analysis Based on Transaction Cost and Relational Approaches

16 Pages Posted: 7 Aug 2009 Last revised: 2 Jul 2011

Date Written: August 3, 2009

Abstract

The research aimed at finding the link between the governance structures and the coordination in Brazilian beef alliances. The paper provides a review of the literature on the coordination of the Brazilian and International beef agribusiness system that shows the importance of adequate governance to the system’s players. The theoretical analysis is based upon the transaction cost economics in order to identify the transactions’ dimensions and on the concepts of relative scope and embeddedness to find the density of relations among agents. The analytical model makes use of the transactions cost dimensions – asset specificity, uncertainty and frequency in order to explain the choice for the alliance hybrid governance structure. The governance specificities of each alliance that arise from the leadership profile – cattle producers, breed association, pack industry, retailer – are explained by the combined analysis of members’ relative scope and embeddedness. The research methodology was based on multiple case studies with data obtained through interviews with alliances’ managers. The study found evidence that agents’ coordination is strengthened in same basis by cattle producers’ leadership in a horizontal network of dense relations, and also through retailer vertical control.

Keywords: strategic alliances, beef sector, coordination

JEL Classification: Q13, L14

Suggested Citation

Bau Macedo, Luis Otavio, Governance and Coordination in Brazilian Beef Alliances: An Analysis Based on Transaction Cost and Relational Approaches (August 3, 2009). Available at SSRN: https://ssrn.com/abstract=1443330 or http://dx.doi.org/10.2139/ssrn.1443330

Luis Otavio Bau Macedo (Contact Author)

Universidade Federal de Mato Grosso ( email )

Av. Fernando Corrêa da Costa, nº 2367
Bairro Boa Esperança
Cuiabá, MT Mato Grosso 78060-900
Brazil

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