The Applicability of Transaction Costs Economics to Vertical Integration Decision: Evidences from a Brazilian Beef Processor

This article aims to explore the vertical integration decision of a beef processor from an integrated approach operations strategy and transaction costs economic theory. In this research, vertical integration as a structural decision of operations strategy determined by the occurrence of transaction costs. The paper presents one case study carried out in one beef Processor Company which illustrates the main theoretical assumptions. The results suggest that transaction costs economics helps to identify key points of major strategic decisions on vertical integration due to its behavioural perspective, reducing the effect of uncertainty and asset specificity of this decision. At the end of the paper, future research is suggested.

Variant title:
A aplicabilidade da economia dos custos de transação na decisão de integração vertical: evidências de um frigorífico brasileiro
Issue Date:
Sep 05 2008
Publication Type:
Journal Article
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Published in:
Organizações Rurais e Agroindustriais/Rural and Agro-Industrial Organizations, Volume 10, Number 3
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 Record created 2017-04-01, last modified 2018-01-22

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