Aligning branding strategies and governance of vertical transactions in agri-food chains

This article looks at the i\nteractions between branding strategies and governance of vertical transactions. Branding strategy refers to the choice of information provided to consumers through a brand name. Governance refers to contractual agreements organizing transactions in vertical chains. We bu...

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Bibliographic Details
Published in:Industrial and corporate change 2009-10, Vol.18 (5), p.835-868
Main Authors: Raynaud, Emmanuel, Sauvée, Loïc, Valceschini, Egizio
Format: Article
Language:English
Subjects:
Agreements
Agriculture
Agrofood industry
Brand names
Brands
Corporate culture
Empirical research
Enterprises
Industry
Market strategy
Marketing
Organization theory
Studies
Transaction costs
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Summary:This article looks at the i\nteractions between branding strategies and governance of vertical transactions. Branding strategy refers to the choice of information provided to consumers through a brand name. Governance refers to contractual agreements organizing transactions in vertical chains. We build on the logic of transaction costs economics to analyze these interactions. We provide an empirical analysis based on case studies to illustrate how governance structures are aligned with branding strategies. We show that the governance will depend on the salience of transactions. Critical or quality-relevant transactions are more tightly controlled than the others. We also explore the consequences of our results for the alignment principle described in Oliver Williamson's work.
ISSN:0960-6491
1464-3650
DOI:10.1093/icc/dtp026