Managerial responses to transaction cost disequilibrium in food supply chains and networks

Abstract

Differences in transaction costs (i.e. costs of information processing, monitoring and control) between firms in local supply chains as well as in an international setting may have a negative impact on competitiveness and on creation of value added. Transaction cost disequilibrium is defined as a state in which transaction costs exceed the transaction benefits from the exchange of assets. The goal of this article is to assess whether such a disequilibrium exists for European food supply chains; if so, what its effects are and how it can be reduced. Transaction cost disequilibrium will be investigated at two levels: international competition and within local supply chains. The first focuses on the competitiveness of supply chains in global markets, the second especially regards the competitive position of companies within a single supply chain. To address our research question, we gathered empirical data by means of survey questionnaires and interviews in 2007 and 2008. The results show that internationall...