The Organisation of Retailer-Manufacturer Relationships

Alan Collins

The Organisation of Retailer-Manufacturer Relationships

In: Paradoxes in Food Chains and Networks

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Dr Alan Collins

Dr Alan Collins Department of Food Business & Development University College Cork Cork Ireland Phone +353-21-4902066 Fax + 353-21-4903358 Email a.collins@ucc.ie

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Type:: Chapter

Pages:: 593–605

DOI:: https://doi.org/10.3920/9789086865079_055

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An examination of the retail sector displays a wide variety of organisational forms used to manage vertical relationships between food retailers and their suppliers. Evidence of collaborative, partnership type relationships has been found and detailed by earlier researchers (Fearne, 1996; Hughes, 1994) while new forms of market type arrangements, exploiting the possibilities presented by new technologies, have also emerged (IGD, 2001). This paper seeks to identify the determinants of the degree of inter-firm integration between retailers and their suppliers. The findings are based on a study of ninety-seven trading relationships between Irish food manufacturers and their Irish and British grocery customers. It identifies the set of characteristics that promote domesticated types of trading arrangements or relational contracting as observed by Arndt (1979), MacNeil (1981) and Williamson (1991). The role of specific investments, retailers’ monitoring of suppliers, balanced dependency, interdependency, expectations of relationship continuity and attractiveness, retailers ability to sanction their suppliers, and the product brand portfolio traded are empirically supported in determining the mode of governance between retailers and their manufacturers

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Paradoxes in Food Chains and Networks

E-Book ISBN:: 9789086865079

Publisher:: Wageningen Academic

Print Publication Date:: 10 Oct 2002

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- Life Sciences

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The Organisation of Retailer-Manufacturer Relationships

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Paradoxes in Food Chains and Networks

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