EconPapers    
Economics at your fingertips  
 

Governance decisions in the supply chain and quality performance: The synergistic effect of geographical indications and ownership structure

Susana López-Bayón, Manuel González-Díaz, Vanesa Solís-Rodríguez and Marta Fernández-Barcala

International Journal of Production Economics, 2018, vol. 197, issue C, 1-12

Abstract: Although the supply chain (SC) management literature has extensively analyzed how features of SC relationships affect quality performance, it barely considers the role played by SC governance in managing and promoting quality performance. This study examines how quality performance is affected by two SC governance decisions in agri-food chains: (i) the adoption of a geographical indication (GI), and (ii) the creation of co-operative (co-op) ownership structures. Focusing on the wine industry, the study first examines how GIs encourage quality by improving vertical adaptation and leveraging resources (e.g., knowledge) of all SC members. Second, it analyzes how co-ops' collective action and horizon investment problems may hinder the delivery of high-quality products. The paper also examines how the effectiveness of GIs in promoting quality is contingent on the ownership structure of agri-food chains. Data from 327 wine producers and quality scores for 1951 bottled wines are used to test the hypotheses. The results reveal that on average, the quality of wineries is positively associated with the adoption of the most stringent GIs. Second, although co-ops are negatively correlated with final quality compared to investor-owned firms (IOFs), this disadvantage is moderated when co-ops are certified under the most stringent GIs. However, these GIs are not related to wine quality within IOFs, suggesting that quality certifications are more effective when used within suitable governance structures.

Keywords: Supply chain; Governance; Quality performance; Cooperatives; Geographical indications; Agri-food industry (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527317304280
Full text for ScienceDirect subscribers only

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:eee:proeco:v:197:y:2018:i:c:p:1-12

Access Statistics for this article

International Journal of Production Economics is currently edited by R. W. Grubbström

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-07-07
Handle: RePEc:eee:proeco:v:197:y:2018:i:c:p:1-12