Supply chain networks in the Armenian agribusiness: Setting a benchmark

Jon H. Hanf, Silva Atoyan, Linda Bitsch and Taras Gagalyuk

Economia agro-alimentare, 2019, vol. 21, issue 2, 359-378

Abstract: Several studies on the effects of foreign direct investments (fdi) in Central and Eastern European Countries show that foreign investors are working hard to raise the level of quality of their suppliers to meet the global quality requirements. In this context, management concepts have been developed to optimize inter-firm relationships. Thus, nowadays, not only intra-firm but also inter-firm processes are developed. By verticalization, we understand the tightening of the procurement relationships leading to the development of vertically integrated firms or vertically cooperating hybrids. In this paper, we take a closer look at vertically cooperating chain systems or networks. The aim of the article is to give an overview of the general mechanisms of chain management in the context of cooperation and coordination issues and then focus on vertical coordination in transition economies. Vertical coordination will be the theoretical basis to analyze a case study of Yerevan Brandy Company (ybc), which serves as a success story and a role model for the building of a supply chain network for other transition economies. This case study is based on an interview with ybc?s heads of grape purchasing and quality control, two of their agronomists working with the farmers, as well as the director of the Vine and Wine Foundation of Armenia, who represents all grape growers and processors. The case study shows tangibly how an international company manages to integrate local smalland medium-sized farmers (grape growers) into its domestic and international value chains by means of cooperation and coordination in the form of contracting.

JEL-codes: Q13 Q18 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.francoangeli.it/riviste/Scheda_Rivista. ... 720&Tipo=ArticoloPDF (text/html)
Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit

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:fan:ecaqec:v:html10.3280/ecag2019-002010

Ordering information: This journal article can be ordered from
http://www.francoang ... o.aspx?IDRivista=214

Access Statistics for this article

Economia agro-alimentare is currently edited by FrancoAngeli

More articles in Economia agro-alimentare from FrancoAngeli Editore
Bibliographic data for series maintained by Stefania Rosato ().