Graphical representation of transaction arrangements

Abstract

With this article the intention is to add to the Transaction Cost Analysis empirical discussions. It introduces a model that aims to graphically represent transaction arrangements. The proposed model was empirically tested in the Brazilian fruit export sector. Six different fruit were used as the basis for the investigation: melons, grapes, mangoes, papayas, oranges and apples. These are the six most exported fruit produced in Brazil. Two distinct research techniques were used in the investigation: secondary data analysis and interviews. The focal aim of the secondary data research was the characterisation and comparison of the production and export sequences of the six most exported Brazilian fruit types. The content of the semi-structured interview questions was determined based on the literature review of Transaction Cost Analysis and the international fruit trade. The questions were carefully chosen to reveal the factors which are determinant for the configuration of transaction arrangements in the fruit trade. The Graphical Representation of Transactions successfully disclosed the three main types of arrangements used by Brazilian fruit exporters. These arrangements are: Integrated Production-Export Transaction Arrangement, Export Agents Transaction Arrangement and the Integrated Multinational Transaction Arrangement. The graphical model makes the process of categorising organisations according to their behaviour more precise. By clearly describing the technical activities performed by an organisation it is possible to assess its role in a specific sector.