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Enhancing Competitiveness In Australian Sugar Supply Chain: Can Application of Transaction Cost Analysis Provide an Answer?

International Journal of Applied International Business (ISSN: 1743-2111) Volume 1 Issue 2

Shantanu Banerjee

Abstract

The concept of international competitiveness accords a notion of highly competitive marketplace with countries, industries, and firms fiercely vying for dominance, market share, and profit. However, the arena of competition and competitive advantage is moving from individual operations towards supply chains using coordination mechanisms. In such an environment, competitive capacity for agricultural products, and sugar in particular, needs to be based on supply chain coordination and cooperation. As the world sugar industry is under intense pressure to deregulate and become competitive, the importance of co-operating increases. This paper aims at reinforcing the relationship between cooperation and competitiveness by examining Australian sugar supply chain activities from the perspectives of transaction cost economics. It lays the groundwork in which various transactions costs in the supply chain can be segregated and assessed. The main conclusion is of the need to develop relationships among chain members based on trust with a common goal for improving competitiveness.

Keywords: Sugar, Supply Chain, Transaction Costs, Competitiveness, Australia.

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