Heterogeneous Organizational Arrangements in Agrifood Chains: A Governance Value Analysis Perspective on the Sheep and Goat Meat Sector of Italy

In the Italian agrifood sector, one observes heterogeneity in the types of quality certification processes. This heterogeneity cannot be explained by standard governance theories like transaction costs economics (TCE). We use the governance value analysis (GVA) perspective that synthesizes TCE and a resources-based view (RBV), to suggest that the observed heterogeneity in organizational forms is a result of heterogeneous differentiating strategies that farms have pursued in the face of competitive pricing pressures. To empirically test GVA, data are obtained using a survey methodology on lamb meat produced by local farms in the Abruzzo region of Italy, challenged by price-costs squeeze. Our empirical test evidences the relevance of the adopted approach, enlightening different organizational arrangements, strictly linked to both the strategic positioning and to the farms’ resources and core competencies.