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Hybrid governances complementary to contracts in international fair trade orange juice

The increased complexity of global competitiveness and the new strategies of the industrial oligopolies have stimulated studies on the effectiveness of business coordination mechanisms that are different from spot market and include contractual properties, influence on networks, resource sharing, distinct forms of leadership, etc. According to Menard (2004), these mechanisms are complementary to contracts and are called hybrid governance structures. This work has the objective of showing the employment of the hybrid governance in transactions between legally independent organizations that chose to coordinate part of their joint activities. The sector chosen was the chain of fair trade orange juice (traditional and organic), and the main actors involved are Brazilian orange growers' organizations, European buyers, and international certifiers of fair trade. Particular emphasis was given to the coordination mechanisms that are complementary to contracts and which were firstly highlighted by Menard (2004). Those mechanisms of coordination are assured by a private certifier that is accepted voluntarily by the actors involved. This certifier authority, which can be more or less formal, coordinates several factors involved in transactions involving a mixed type of governance that includes control and incentives.

Citriculture; Governance; Fair trade; Ad hoc institution; Trust


Universidade Federal de São Carlos Departamento de Engenharia de Produção , Caixa Postal 676 , 13.565-905 São Carlos SP Brazil, Tel.: +55 16 3351 8471 - São Carlos - SP - Brazil
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