Chain Strategy and Business Environment Analysis

Problem Description
What are the contextual variables (economic and social) that influence the form (e.g. intensity) of vertical co-ordination?

Objective
The objective of this research project is to find an explanation why a firm, in view of the characteristics of the business environment and the characteristics of the firm, chooses a certain form of vertical co-ordination.

Short Research Description
Central to this research is the development of a model that integrates the economic and the sociological approach to vertical co-ordination between firms. For most of this century, it has been assumed in the academic field as well as in the practitioner's field that the strongest and most effective ties were those based on ownership. In recent years, however, many organisations have entered into alliances that do not entail changes in ownership; and organisation theorists have begun to recognise the importance of these forms. Moreover, we do belief that within these forms of co-operation in supply chains social factors such as trust and commitment are as much important as economic factors. So, for understanding vertical co-ordination in supply chains it is important to analyse both economic variables and social variables that influence these vertical alliances. A deeper understanding of these contextual variables gives the management a tool to implement and maintain supply chain concepts like Efficient Consumer Response (ECR) and Chain Care Systems (e.g. HACCP)