The paper aims to compare various institutional arrangements and to delineate the relationship between these forms and the performance of supply chains. The paper addresses the question of which governance structure actors should choose given the basic characteristics of the transaction at stake. The paper considers three governance structures: vertical integration, cooperative vertical integration and the Temporary Firm Association and proposes a tentative assessment grid based on four dimensions: adaptation, enforcement, responsibility and stability. The assessment suggests that cooperative firms seem to have a comparative advantage over Temporary firm associations.
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