The concept connotation, organizational boundary and synergy mechanism of agricultural industrialization union: evidence from Anhui Province

Mar. 3,2020
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The agricultural industrialization union is the most advanced form of organizational innovation of the primary, secondary and tertiary industry convergence development in China at present, but there is a lack of discussion in the extant literature on its conceptual connotation, organizational boundary and synergy mechanism. From the perspective of industry convergence, this article redefined the concept of the agricultural industrialization union, expounded the characteristics of its connotation, discussed its vertical integration organizational boundary, and deeply analyzed its synergy operational mechanism. Finally, it selected four typical cases from the grain, vegetable, animal husbandry and fishery industries in Anhui Province for empirical analysis. The results show that the agricultural industrialization union is an advanced form of vertical industry convergence of agriculture in China. It has three significant characteristics, namely, multiple cross-integration of industrial chains, highly specialized division in an industrial chain and the production factors sharing in close forms. Its vertical integration organization boundary originates from the product pricing and transaction cost of the intermediate product market. It gains overall benefit promotion of the industry and the supply chain by internalizing the vertical externality and resolving the double marginalization. A division of labor by contracts, revenue links and factor flow are its main operational mechanisms for promoting synergies. Finally, this study proposed that the development orientations of the union should be structural maturity, operational standardization and joint mainstreaming.

Corresponding Author: WANG Zhigang
CNKI Press Officer: ZHONG Ming

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