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Abstract
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.