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Environmentally-friendly certifications have increased over the past decade within food supply chains. Although a large body of literature has explored the drivers leading firms to adopt such certifications, it has not closely examined the strategic motivations associated with their adoption. This paper aims to investigate an environmentally-friendly certification, VIVA, examining its role as an alternative form of supply chain governance. The aim is to investigate the drivers affecting the adoption of VIVA and to assess managerial perceptions related to transaction-related characteristics and the firm’s internal resources and capabilities.

This study draws upon both an extended transaction cost economics perspective, which is based on transaction risks and the resource-based view, which examines a firm’s internal resources. A survey was conducted via a structured questionnaire sent to all of the wine producers in charge of the decision regarding whether to adopt VIVA certification. A Hierarchal Bayesian Model was applied to analyse questionnaire responses. Such a model allows us to specify the probabilistic relationship between questions and latent constructs and to carry over uncertainty across modelling levels.

The adoption of this environmentally-friendly certification is envisioned as a tool to curb internal risks, and thus to manage behavioural uncertainty within the supply chain. A high level of exposure to exogenous transaction risks discourages firms from adopting VIVA certification. The certification system is not perceived as a promoter of operational capabilities. Managers are more likely to implement the certification when they expect that its adoption will leverage their potential knowledge of the supply chain or prompt new and better collaborations with the suppliers. Therefore, the certification can become a resource that interacts with the capabilities of the firm, expressing complementarities that stimulate the formation of dynamic capabilities.

The identification of drivers from the two theoretical perspectives offers insights into the attributes that are perceived as important by managers and which, therefore, could be leveraged to foster the adoption of the environmental certification. The external validity of the study could be improved by extending the sample to other certifications and supply chains.

The study offers a different perspective on environmental certification. It demonstrates that considering the certification as an alternative form of supply chain governance opens up a set of efficiency and strategic considerations that could be addressed to promote the effectiveness of an environmental strategy within a supply chain

The aim of the paper is to investigate the determinants leading firms to choose among different voluntary standards within food supply chains. In specific, the authors explored the role of transaction risks, i.e. internal and exogenous risks, in the adoption of different traceability standards.

A survey was conducted within the Italian population of 216 food-processing firms that adopt voluntary traceability schemes. The identification of different transaction risks was based on the literature on supply chain management and transaction cost economics. An ordinal regression model was used in the analysis.

Empirical results highlight that the transaction risks perceived by food firms play a significant role on the kind of traceability schemes to adopt. There is a positive link between internal risks and the decision to implement complex schemes. Moreover, a negative relationship between the perceived exogenous risks and the complexity of the standard adopted is also observed. Exogenous transaction risk lead to the implementation of standards which do not imply strong co-ordination. On the contrary, internal risks imply complex schemes that lead to closer supply chain relationships.

The analysis is limited to cross-sectional data for a single country, and further investigation would help assess the generalisation of the findings.

The analysis can be considered a useful framework to orient firms strategic decisions towards the most appropriate voluntary standard to adopt for an efficient management of vertical relationships within food supply chains.

The present analysis is the first attempt to explain the determinants leading firms to choose among different kinds of voluntary standards within food supply chains. The approach used reveals that transaction risks can be considered a useful framework to explain firms’ strategic decisions related to the kind of schemes to adopt.