Alignment between vertical and horizontal coordination for food quality and safety in Indonesian vegetable chains

Abstract

This study explores the alignment between vertical coordination (VC) and horizontal coordination (HC) in Indonesian vegetable value chains. This alignment helps buyers to design efficient coordination mechanisms with regard to the production of safe and high-quality vegetables. We use a qualitative approach and describe five vegetable value chains featuring VC and HC. Within-case and cross-case analyses have been performed to develop propositions. The empirical study finds that there is a diverse combination of VC and HC mechanisms in Indonesian vegetable value chains. Strong VC correlates with high food quality and safety standards that farmers have to meet. The presence of HC through a producer organisation (PO) reduces the need for strict VC mechanisms. When VC is combined with HC through a PO, efficiency of quality and safety control increases and coordination costs decrease, ensuring better compliance with food quality and safety requirements.