The management of subcontracted networks as an alternative to internalisation: the shift from the standardised to the specialised in frozen and chilled foods

This paper highlights the management of subcontracted networks as alternatives to internalisation. The contrasting examples of the UK frozen food and chilled ready meals sectors are examined to understand different nature of economic relationships in these sectors. The paper examines the shift in the role of the firm from producer, to the firm as co-ordinator of information flows. In contrast to the vertically integrated frozen food sector, the chilled food industry is retailer led, co-ordinated by the direct management of inter-organisational network relationships. The sector manifests plural organisational forms, with trust based inter-organisational networks and arms-length subcontracting.