Journal of Forest Economics > Vol 25 > Issue 1

Behavioral determinants of supply chain integration and coexistence

Christian Kimmich, Swiss Federal Research Institute WSL, Switzerland, christian.kimmich@gmail.com Urs Fischbacher, University of Konstanz, Germany,
 
Suggested Citation
Christian Kimmich and Urs Fischbacher (2016), "Behavioral determinants of supply chain integration and coexistence", Journal of Forest Economics: Vol. 25: No. 1, pp 55-77. http://dx.doi.org/10.1016/j.jfe.2016.08.001

Published: 0/12/2016
© 0 2016 Christian Kimmich, Urs Fischbacher
 
Subjects
 
Keywords
JEL Codes:C93D22L22L73Q23
Industrial organizationTime preferencesRisk preferencesPrice expectationsInstitutional trustPlural forms
 

Article Help

Share

Download article
In this article:
Introduction
Organizational structure and institutional choices in wood markets
Behavioral hypotheses for institutional choice
Methods and data
Results
Conclusions

Abstract

Economic theory considers physical production characteristics and related property rights as key determinants of the organization of an industry. Yet, we frequently observe coexisting governance modes within industries and firms, even when the transaction attributes of a commodity are homogenous. We test whether risk and time preferences, price expectations, and trust in supply chain types can explain variations and coexistence in governance. Specifically, we experimentally elicit economic preferences of forest managers in the Swiss wood sector. We find that all behavioral dimensions are related to the choice of sales channel. Most importantly, trust and expectations are key determinants in transferring property rights, while risk aversion, patience, and ownership structure explain the existence of plural forms at the firm level.

DOI:10.1016/j.jfe.2016.08.001