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ICC Advance Access published online on June 3, 2009
Industrial and Corporate Change, doi:10.1093/icc/dtp026
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© The Author 2009. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Aligning branding strategies and governance of vertical transactions in agri-food chains

Emmanuel Raynaud, Loïc Sauvée and Egizio Valceschini

Correspondence: Emmanuel Raynaud, INRA SADAPT & Centre d’Economie de la Sorbonne (University Paris I), 16 rue Claude Bernard, 75231, Paris cedex 05, France. e-mail: emmanuel.raynaud{at}agroparistech.fr

This article looks at the i\nteractions between branding strategies and governance of vertical transactions. Branding strategy refers to the choice of information provided to consumers through a brand name. Governance refers to contractual agreements organizing transactions in vertical chains. We build on the logic of transaction costs economics to analyze these interactions. We provide an empirical analysis based on case studies to illustrate how governance structures are aligned with branding strategies. We show that the governance will depend on the salience of transactions. Critical or quality-relevant transactions are more tightly controlled than the others. We also explore the consequences of our results for the alignment principle described in Oliver Williamson's work.


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