THE IMPACT OF CHAIN GOVERNANCE FOR THE PRODUCTION OF TRUST

Abstract

Consumers are getting increasingly concerned about food quality. Associated with this, public and private sectors have been enforcing compliance with strict food standards. This study focuses on the strategic response of Brazilian beef chain to comply with food standards and their attributes, specifically those demanding trustworthiness among partners. From a chain perspective, the study characterises both the Brazilian domestic and export markets. The empirical approach employed in the study is based on qualitative methods with case studies. The results have great policy and managerial implications. Emerging public and private standards are demanding changes to a more integrated supply chain in order to enhance confidence in beef production and processing. Findings describe those kinds of governance that stimulate upgrading and transferring of best practices and, consequently, result on more trustworthiness on chain relationships. From a managerial perspective, the results suggest that tight governance and investments in management capacity to new forms of organisation have to be considered.