ABSTRACT

Vertical coordination is the process of strengthening relationships between functional nodes of the value chain, involving the shift away from one-off spot transactions toward developing longer-term business connections. It is an acknowledgement that there is value in longer-term associations beyond simply establishing the price for output of a particular quality (see Coles, 2010). Developing these relationships can be a slow and difficult process because it requires, above all else, trust-building among actors and the clear manifestation of ‘win–win’ scenarios for all participants.