The economics of quasi-integration

Dietrich, Michael

doi:10.1080/09538259400000001

Cited by 16 publications

(9 citation statements)

References 23 publications

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“…Cantina Cellaro has implemented a downstream strategy which is unusual for the Sicilian context: a vertical quasi-integration relationship (Baudry, 2013) with one of the most important Italian wine conglomerates, the Farnese group. This relationship exemplifies a strategic alliance which has provided this cooperative with a specific business model and a strategic edge, as well as many advantages in terms of enhancing its financial and reputation results, as theorised by Dietrich (1994) and Guimarães et al (2015). The relationship enables the Cantina Cellaro to reach national and international markets, albeit indirectly.…”

Section: Advantages and Disadvantages Of The Quasi-integration Relationshipmentioning

confidence: 90%

“…In the long-term, strategic relationships between legally separate economic units include quasi-integration relationships (Dietrich, 1994). This concept was described by Houssiaux (1957) as a habitual, subcontracting relationship existing between companies in subsequent production phases, whose regularity of supply is assured.…”

Section: Increased Intensity Of Competitionmentioning

confidence: 99%

“…In addition, the increased sharing of information will promote learning in dealing with diversity, complexity and change. And, contemporaneously, the fact of being linked to an established company can enhance the reputation of the supplier (Dietrich, 1994).…”

Section: Increased Intensity Of Competitionmentioning

confidence: 99%

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The Sicilian cooperative system of wine production

Borsellino

Varia²,

Zinnanti

et al. 2020

IJWBR

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Purpose The purpose of this paper is to verify whether, besides the traditional organisational models mainly implemented by wine-making cooperatives, more modern and hybrid organisational forms can be profitably applied within an increasingly competitive wine market. Design/methodology/approach The study outlined in this paper deployed a mixed method. Specifically, an archived analysis, a survey and a descriptive case study (including visits, interviews and documentary analysis) were the methodological techniques used in this study, which were “in series but integrated” between themselves. In this paper, the landscape of Sicilian wine cooperatives is described by collating and processing different types of statistical sources, which have been integrated by direct surveys undertaken in 2017. Thereafter, the study focussed on a wine cooperative with a specific business model and a strategic edge by analysing its strategic choices and main structural and governance characteristics. Within this case study, a financial ratio analysis, which was based on 2011-2017 financial statements, was conducted to analyse the profitability, financial balance, capital structure and debt relationships of the wine cooperative. Findings The Sicilian wine cooperative system is still predominantly characterised by partial and vertical integration, implemented by cooperatives which elect to sell mainly bulk wine to wine merchants. In such a context, there is scope for other degrees of integration and strategic inter-firm alliances; the latter includes “vertical quasi-integration”. The study demonstrated how the wine cooperative under investigation is overcoming the structural problems of the regional wine sector and why it is retaining such a strategic alliance with one of the most important Italian wine conglomerates. Indeed, it has acquired greater strength and reliability since its collaboration with the aforementioned wine company. Thus, total revenue and the company’s market share of packaged wine have increased. However, there are still margins for improving sales’ profitability. Research limitations/implications This study has territorial limitations but Sicilian wine cooperatives generally play an important role in the regional, Italian and European wine industries. As such, this research should be considered as an exploratory study, deserving further investigation into different strategic choices within the wine cooperative system by performing cross-case comparisons. Results may also be useful in orienting cooperative strategies in Sicily (or further afield) to small-to-medium wine cooperatives, often lacking specific abilities relating to the distribution, marketing and selling of their wine. Public agricultural policies may also be enlightened by these research pathways. Originality/value The authors contend that their study provides hitherto missing information relating to inter-firm strategic alliances, which wine cooperatives might implement to enhance their competitiveness and survive in the long-run.

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Section: Advantages and Disadvantages Of The Quasi-integration Relationshipmentioning

confidence: 90%

Section: Increased Intensity Of Competitionmentioning

confidence: 99%

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The Sicilian cooperative system of wine production

Borsellino

Varia²,

Zinnanti

et al. 2020

IJWBR

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“…In particolare, lo spettro dei meccanismi di governo delle transazioni su cui si concentra l'analisi è inizialmente polarizzato sulle alternative del mercato e della gerarchia che costituiscono le forme di governo alternative di gestione delle attività economiche. Successivamente, l'approccio neo-istituzionalista approfondisce anche l'analisi di strutture di governo intermedie, che emergono quando i rapporti tra più imprese si consolidano nel tempo attraverso la definizione di contratti relazionali di lungo periodo definendo forme organizzative ibride di quasi-integrazione o vere e proprie reti integrate di imprese (Blois 1972;Dietrich 1994). Secondo questi sviluppi, in talune condizioni -definite dalla tecnologia e dalla domanda -le imprese possono fruire di gran parte dei vantaggi dell'integrazione, senza assumere i rischi o le rigidità derivanti da un'unica proprietà.…”

Section: Costi DI Transazione E Modelli Organizzativiunclassified

L'analisi economica delle relazioni tra ICT e organizzazioni sanitarie

Fiorentini¹,

Ugolini²

2017

Salute E Società

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L'analisi economica delle relazioni tra ICT e organizzazioni sanitarieRiassunto Questo lavoro, partendo dall'approccio teorico neoistituzionalista, analizza gli effetti dei crescenti investimenti in ICT sui confini delle imprese, con particolare riferimento alla dimensione dell'integrazione verticale. L'analisi dell'impatto delle ICT sulle organizzazioni sanitarie fa emergere un effetto assai diverso dall'accorciamento dei legami verticali tra varie fasi della produzione che si osserva tendenzialmente in altri ambiti. Infatti, la crescente evoluzione dei servizi sanitari ad organizzarsi quali insieme di attività e servizi eterogenei ma fortemente integrati e finalizzati alla prevenzione, al mantenimento e al recupero del migliore stato di salute possibile, amplifica i vantaggi comparati derivanti da una gestione integrata anche dei flussi informativi che, a sua volta, rafforza i vantaggi di soluzioni organizzative verticalmente integrate. Parole chiave -Costi di transazione, modelli organizzativi, servizi sanitari, ICT, gestione integrata, valutazione economica Abstract (The economic analysis of the relationship between ICT and health organizations)Starting from the neo-institutional theoretical approach, this article analyses the effects of the growing ICT investments on the boundaries of economic organizations, with particular reference to the dimension of vertical integration. The analysis of the impact of ICT on health organizations reveals very different effects than the shortening of vertical links between various stages of production that is typically observed in other industries. Indeed, the growing trend of health systems to strengthen the institutional and managerial tools to integrate their heterogeneous activities and services in order to provide a more effective support to the prevention, maintenance and recovery of the highest attainable standard of health, enhances the comparative advantages arising from an integrated management of information flows, which further strengthens the advantages of vertically integrated organizational solutions.

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“…Some authors refer to this as quasi (-vertical) integration (see e.g. [11], [12], [13]). The less fully SCM is implemented, the more market-like are the transactions which take place.…”

Section: Transaction Cost Analysis Of Supply Chain Managementmentioning

confidence: 99%

Exploring the transaction dimensions of supply chain management

Lietke

Boslau

2007

IJNVO

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It is argued that firm cooperation in supply chain management can be classified as a hybrid governance structure in a new institutional sense. Using a key informant survey, exploratory data on transaction dimensions and supply chain management was gathered and analyzed. Findings suggest that the implementation of such cooperation is not a binary choice but rather a matter of varying degrees. All factors commonly associated with influencing transaction costs (asset specificity, uncertainty and frequency) are significantly higher for firms with more fully implemented supply chain management, making a more integrated solution advantageous. Additionally, the data suggests a strong influence of transaction frequency on the degree of asset specificity and uncertainty.

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The economics of quasi-integration

Cited by 16 publications

References 23 publications

The Sicilian cooperative system of wine production

The Sicilian cooperative system of wine production

L'analisi economica delle relazioni tra ICT e organizzazioni sanitarie

Exploring the transaction dimensions of supply chain management

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