ABSTRACT

This chapter presents the empirical results collected through interviews with representatives from the different firms. It focuses on the question of vertical integration and the management of production input in traditional firms. The chapter also explores how the firm did integrate the slaughter plant in the value chain. The main purpose of the interviews was a best possible understanding of the organization of the production process from the fertile egg to the market. What kind of managerial challenges one faces depends on the choice of governance structure: market, hybrid or hierarchy. The chapter provides three main groups of questions covering: ownership of the means of production throughout the whole value chain, the design of production contracts and the contract process. It further focuses on analysis of vertical integration, level of transaction-specific investments, and uncertainty should be reflected upon.