Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa
Marta Fernández-Olmos,
Jorge Rosell-Martínez and
Manuel A. Espitia-Escuer
Additional contact information
Marta Fernández-Olmos: Department of Business Economics, University of Zaragoza, Zaragoza, Spain, Postal: Department of Business Economics, University of Zaragoza, Zaragoza, Spain
Jorge Rosell-Martínez: Department of Business Economics, University of Zaragoza, Zaragoza, Spain, Postal: Department of Business Economics, University of Zaragoza, Zaragoza, Spain
Manuel A. Espitia-Escuer: Department of Business Economics, University of Zaragoza, Zaragoza, Spain, Postal: Department of Business Economics, University of Zaragoza, Zaragoza, Spain
Agribusiness, 2009, vol. 25, issue 2, 231-250
Abstract:
The authors study the determinants of make or buy decisions for grapes made by wineries belonging to the Rioja Qualified Designation of Origin (DOCa). In particular, they analyze the relationship between product quality and vertical integration. Although there is a long tradition in transaction cost theory of analyzing the determinants of make or buy decisions in manufacturing, surprisingly few empirical studies have been conducted in the agriculture and food and beverage industry. Likewise, although quality is a key competitive variable in many food sectors, only a few studies have analyzed quality in their models. The authors find that transaction costs and product quality provide a useful explanation of vertical integration in the wine industry in the Rioja DOCa. Wineries that produce high-quality wines are more likely to integrate vertically than those producing low-quality wines. They also find that the size of the winery significantly affects make or buy choices. Implications are explored for managers facing a governance mode choice. [EconLit Classifications: L220, Q130]. © 2009 Wiley Periodicals, Inc.
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (13)
Downloads: (external link)
http://hdl.handle.net/10.1002/agr.20196 Link to full text; subscription required (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:25:y:2009:i:2:p:231-250
DOI: 10.1002/agr.20196
Access Statistics for this article
Agribusiness is currently edited by Ronald W. Cotterill
More articles in Agribusiness from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).