Plural forms of governance in the beef industry: a case study in Brazil

Abstract

Purpose – The purpose of this paper is to describe the forms of coordinating transactions used by a large beef slaughterhouse and processing companies and their suppliers of beef cattle, and to identify the reasons for the adoption of plural forms of governance for their transactions with cattle suppliers. Design/methodology/approach – A case study format was selected for this investigation. The focal company selected offers a large number of products derived from beef for different commercialisation channels in the domestic and foreign market. A non-probability sample of 30 suppliers (cattle farmers) of the focal company provided data on finished steers sold in 2010, according to the three types of governance used in the transactions (spot market, forward contracts and long-term contracts). Findings – The simultaneous use of more than one type of governance structure to coordinate similar transactions has been termed plural forms of governance in the literature. In Brazil, new forms of governance, such as formal and informal contracts, have been adopted for transactions between beef processing companies and cattle farmers, in addition to the use of spot market and vertical integration. It has been shown that the adoption of plural forms reduces the risk of complex transactions; and is a strategy to deal with unpredictable institutional environments and high heterogeneity of both suppliers and distribution channels. Research limitations/implications – The research provides empirical evidence of plural forms of governance, as well as the reasons for the adoption of this strategy by firms, which contributes to the ongoing theoretical discussion on this subject. Practical implications – The paper has implications for company supply chain management. Originality/value – This paper presents theoretical review on plural forms of governance, new empirical evidence and determinant factors for their adoption.

Complementarity in the adoption of traceability of beef cattle in Brazil

“…The implementation of traceability leads to the adoption of practices such as: individual identification of animals; records and documentation in order to track the history and movement of each animal; inventory control and the adoption of information technologies, such as software and electronic devices for cattle management (Cócaro & Jesus, 2007;Carrer et al, 2014).…”

Corporate Governance: International Context and Trends from 2005 to 2015

“…Pluralistic forms of corporate governance are found to reduce the risks of transaction costs (Carrer et al, 2014). The cases of Enron and World.com show that the traditional model of corporate governance is ineffective; a new model is proposed based on a transparent institutional framework that is rooted in ethics and values and guided by consensus among managers and stakeholders, which would make possible a reduction in transaction costs (Choudhury & Harahap, 2007).…”

Concurrent sourcing and supplier opportunism

“…Therefore, even a few case studies or merely semi-structured interviews may provide us with new knowledge about this interesting phenomenon (e.g. Carrer et al, 2014).…”