Coordination strategy decisions in Sao Paulo's fresh produce markets: An empirical test of the Peterson, Wysocki & Harsh model

The Peterson, Wysocki & Harsh (PWH) model of coordination strategy decision making seeks to strengthen the contribution of Transaction Cost Economics by addressing some of its criticisms. This paper provides an empirical test of the PWH model, drawing evidence from firms' procurement strategies in Sao Paulo's fresh produce markets. The results demonstrate the empirical and theoretical insight into firm managers' coordination decisions that the model provides. Specifically, the cases show how asset specificity and complementarity affect the costliness of coordination decisions, how this costliness drives the decision to change coordination strategies, and how feasibility and risk/return criteria also apply.