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Quantifying Strategic Choice Along the Vertical Coordination Continuum

Allen Wysocki (), H. Christopher Peterson and Stephen B. Harsh

International Food and Agribusiness Management Review, 2003, vol. 06, issue 3, 23

Abstract: The qualitative and quantitative results of a study undertaken to test a decision framework firms might consider in choosing a vertical coordination strategy are presented. The posited five-step decision making process tested that a change in coordination strategy would occur if and only if a "yes" decision was made at each step. The results reported as case-based frequencies and as a discriminate analysis function provide strong support for the study's research propositions. The ability of an alternative to reduce the costliness of a coordination error and the acceptability of the risk/return tradeoff were critical to the willingness of a sample of producers to change coordination strategy. Implementability was significant, but not to the same extent as costliness of a coordination error or acceptability of the risk/return tradeoff.

Keywords: Industrial; Organization (search for similar items in EconPapers)
Date: 2003
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