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An inquiry into evolving supply chain governance structures in South African agribusiness

Thesis (PhD ( Agricultural Economics))--University of Pretoria, 2005.

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Other Authors: Van Rooyen, Cornelius Johannes
Format: Thesis
Published: University of Pretoria 2013
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access_status_str Open Access
author2 Van Rooyen, Cornelius Johannes
author_browse Van Rooyen, Cornelius Johannes
author_facet Van Rooyen, Cornelius Johannes
collection Thesis
dc_rights_str_mv © 2002 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.
description Thesis (PhD ( Agricultural Economics))--University of Pretoria, 2005.
format Thesis
id oai:repository.up.ac.za:2263/26909
institution University of Pretoria (South Africa)
last_indexed 2026-06-10T12:37:36.798Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository
publishDate 2013
publishDateRange 2013
publishDateSort 2013
publisher University of Pretoria
publisherStr University of Pretoria
record_format dspace
source_str UPSpace — University of Pretoria Institutional Repository
spelling oai:repository.up.ac.za:2263/26909 An inquiry into evolving supply chain governance structures in South African agribusiness Van Rooyen, Cornelius Johannes upetd@up.ac.za Kirsten, Johann F. Doyer, Ockert Tobias Agricultural industries south africa Agriculture economic aspects south africa Business logistics UCTD Thesis (PhD ( Agricultural Economics))--University of Pretoria, 2005. Supply chain management is emerging as an important source of competitive advantage for agribusinesses globally and in South Africa. The objective of this study was to describe and analyse the emerging governance structures in agribusiness supply chains. Governance structures are the formal and informal institutions that prohibit, permit, or require certain actions and provide the incentives for exchange. Agribusiness managers can choose from a continuum of governance structures which include spot or cash markets, specifications contract, relation-based alliance, equity-based alliance and vertical integration. These structures are distinguished by the composition of market and managed control of the transaction processes. In this study the constructivist and positivist inquiry paradigms were adopted to address the complexity and interrelation of factors involved in the choice of governance structure. The study was conducted in two stages. The first stage entailed a survey of agribusiness managers to elicit their opinions and perceptions on the strategic direction, preferred present and future coordination mechanisms, strategic focus, the future shape of the agro-food industry and the major factors driving these trends in the South African agribusiness complex. These were compared with global trends. This section was conducted in the positivist paradigm to extend the validation and generalisation of the second stage which was conducted in the constructivist paradigm. The second stage entailed the analysis of three case studies to identify the drivers for supply chain formation and the expression of these drivers, strategic considerations and transaction characteristics in appropriate governance structures. The choice of governance structure is influenced by the drivers of change, product characteristics, processes of the supply chain, transaction characteristics and costs. The most significant drivers of change were company competency, consumer behaviour and technology. The perishable nature of most agricultural products, in particular, requires special control and traceability systems to ensure chain transparency in order to certify and assure consumer safety and product quality. These drivers, product characteristics and systems determine the characteristics of the required transaction to facilitate the creation of customer value. Key concepts that emerged in the description of transaction costs are bounded rationality, opportunism, asset specificity and information asymmetry. The optimal governance structure maximises desired transaction requirements while minimising the costs of exchange. The analysis of the case studies showed that these factors cannot be considered in isolation. In each of the cases a different factors was instrumental in the determination of the optimal governance structure. The study identifies a six step decision process for agribusiness managers and researchers to relate drivers of competitiveness to appropriate governance structures. The emergence of supply chains is driven by evolving consumer demands and societal values on the one hand and the need for agribusiness and inter-agribusiness competency to transform these needs and values into consumer value on the other hand. South African agribusiness are employing technology and closer vertical coordination to improve production processes, quality assurance, traceability and process transparency. In line with global trends South African agribusiness will have to establish ever more sophisticated systems to satisfy consumer needs and societal values as these evolve to include less tangible needs and values such as environmental and ethical concerns. Agricultural Economics, Extension and Rural Development unrestricted 2013-09-07T09:04:38Z 2005-08-05 2013-09-07T09:04:38Z 2002-09-01 2005-08-05 2005-08-01 Thesis Doyer, OT 2002, An inquiry into evolving supply chain governance structures in South African agribusiness , PhD thesis, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/26909 > H1129/ag http://hdl.handle.net/2263/26909 http://upetd.up.ac.za/thesis/available/etd-08012005-145938/ © 2002 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf application/pdf application/pdf application/pdf application/pdf University of Pretoria
spellingShingle Agricultural industries south africa
Agriculture economic aspects south africa
Business logistics
UCTD
An inquiry into evolving supply chain governance structures in South African agribusiness
title An inquiry into evolving supply chain governance structures in South African agribusiness
title_full An inquiry into evolving supply chain governance structures in South African agribusiness
title_fullStr An inquiry into evolving supply chain governance structures in South African agribusiness
title_full_unstemmed An inquiry into evolving supply chain governance structures in South African agribusiness
title_short An inquiry into evolving supply chain governance structures in South African agribusiness
title_sort inquiry into evolving supply chain governance structures in south african agribusiness
topic Agricultural industries south africa
Agriculture economic aspects south africa
Business logistics
UCTD
url http://hdl.handle.net/2263/26909
http://upetd.up.ac.za/thesis/available/etd-08012005-145938/