A Study on the Vertical Co-ordination of Mango Export
Date Issued
2010
Date
2010
Author(s)
Leung, Kitmee
Abstract
This study uses Transaction Cost Theory, Principal-Agency Theory and Property Rights Theory as tools to analyzes the vertical coordination problem of Taiwan’s mango export supply chain. The analysis is divided into three parts. Firstly, it attempts to use the above theories to explain how the supply chain of mango export are operating. Secondly, the above theories are used to analyze the coordination problems of the supply chain and to design a new mango export organization that can enhance the performance of Taiwan’s mango export. In designing the new organization, New Zealand Kiwifruit export organization – Zespri Group Ltd. is introduced and used as a case study. In addition, this study uses Binomial Logit Regression analysis to find out the factors that significantly affecting the contract fulfillment rate between farmers and exporters.
This study shows that there are two main problems in nowadays supply chain of mango export: export orders are not stable and business overlap within the export supply chain. These two problems make contract farming between farmers and exporters and scale economy generally impossible in Taiwan’s mango export. The quarantine requirement demanded by Japan, however, makes contract farming compulsary. And empirical results in this study show that duration of cooperation between farmers and exporters, purchasing price offer by exporters, and frequency of field inspection by exporters have a significant impact on the fulfillment rate of contract. Finally, this study recommends to establish a new mango export organization, through which the vertical coordination of mango farmers, farmers’ organizations, and exporters, and the efficiency of mango export supply chain can be strengthened.
Subjects
Organizational Economics
Mango Export
Vertical Coordination
Type
thesis
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