Plurality of governance on cattle ranches: case studies in Brazil

ABSTRACT

The present article investigated the plural forms of governance that have been adopted in buying and selling transactions by cattle ranches with differentiated markets. In addition, it proposes to describe and explain which determinants influence this plurality, based on the theoretical principles of transaction cost economics. The analysis was based on the observation of both upstream transactions and commitments and agreements established downstream by two ranches, both specialized in beef cattle, but with different competitive strategies. The adoption of plural forms demonstrates diverse competitive advantages, insofar as both can meet the requirements of different distribution channels or increase production capacity. The results indicated that the governance structures adopted by the ranchers studied responded to the demands of the strategies adopted for their production units. Thus, the adopted governance structures should be aligned with their strategies for the cattle ranches to be successful.(AU)