Firms' strategies and voluntary traceability: an empirical analysis in Italian food chains

In international food markets, voluntary traceability systems have increasedtheir role in guaranteeing high safety and quality standards for the consumer. Suchsystems are also among the strategies firms employ to differentiate products andstrengthen competitive advantage in both the national and international market.Voluntary traceability has significant implications on the organisation of economicrelationships within food supply chains. This paper focuses on this aspect and analysesthe effects of voluntary traceability on vertical co- ordination using a transaction costperspective. The analysis makes reference to the Italian situation where the nationalstandard organisation has introduced standard rules for voluntary traceability (UNI10939; ISO 22005 at the international level).A survey was conducted by questionnaire to assess changes in transaction key factors(degree of asset specificity, uncertainty and frequency) and transaction costs after theintroduction of voluntary traceability. The sample represent s all Italian firms certifiedUNI 10939, and consists of 190 firms. Respondents are 146. Factorial and ClusterAnalyses were applied to highlight groups of firms with similar features. The empiricalresults reveal four different clusters in terms of a vertical reorganisation of transactions.