ABSTRACT
Backward integration, i.e. the control of input markets, is one motive for creating an association or entering into an organizational alliance or partnership aimed at cost reduction and greater control by cutting out external intermediaries (‘the middlemen’). A purchasing co-operative, for example, seeks to use its members’ combined purchasing power to negotiate better prices and terms. A non-profit food distribution network partnering with local farmers’ co-operatives to produce food items would be another example of backward integration.
