Quality management and strategic alliances in the mango supply chain from Costa Rica : an interdisciplinary approach for analysing coordination, incentives and governance

Under competitive market conditions, firms are faceless and nameless, demand is infinitely elastic, prices are given and the firm allocates its resources within a predetermined production function. In such competitive markets, firms maximise net profits subject to production constraints (Goldsmith and Sporleder, 1998). Unlike standard neoclassical economics, Coase recognises that there are many costs involved in using the market mechanism. These include the costs of information, negotiation and monitoring (Hobbs, 1996). These entry barriers may easily induce market failures. To cope with the requirements of finding new market opportunities, access to information and investments in assets are of key This book develops an integrated research framework in which social science and natural science merge in the analysis of the relationships and transactions within the mango supply chain from Costa Rica. More specifically, behaviour economics, and institutional economics is combined with quality management and product development techniques. This book is also important because it uses an innovative gaming simulation for research and not only for training. The game develops a standard supply chain for a perishable product, which is used for simulating the bargaining power and revenue distribution of the agents in the chain and the governance structure preferred for doing business. This game simulation is played by the real producers in the field. Other important topics covered are quality management and quality variability. Studying quality management (intrinsic and extrinsic attributes) in relation to the farm household characteristics, production system and agreements, enables us to define some economic incentives to improve the quality of the produce. Studying the variability of the produce helps us understand and describe how the different management practices throughout the chain affects the quality of the produce. This relates to the market outlet choice the producers make and the strategic behaviour they have. This book is of interest for professionals and practitioners involved in the design, management and assessment of national and international supply chains for perishable produce