Supply chain governance in the production systems of business clusters: the case of the footwear industry in Jaú

Abstract

This paper’s objective was to analyze the role of transaction costs in the longevity of Jaú footwear supply chain. Firms are configured in a cluster, and their level of coordination was investigated. The study data was collected via conducting interviews with the cluster’s agents, making direct observations during the field visits, and consulting secondary data emerging both from document analysis and from sources such as newspapers, sectoral studies, and previous academic studies. The data point to the intense frequency of transactions among firms and the low uncertainty of internal transactions within the cluster due to the extensive exchange of information among agents. The bonds of competition and coordination that are established among the firms both reduce transaction costs and make them more competitive. Both human asset specificity and site specificity are important factors in the longevity of Jaú’s footwear cluster.DOI: 10.12660/joscmv7n2p140-153URL: http://dx.doi.org/10.12660/joscmv7n2p140-153