Vertical Coordination – Definition

Cite this article as:"Vertical Coordination – Definition," in The Business Professor, updated May 12, 2019, last accessed December 4, 2020,


Vertical Coordination Definition

Vertical coordination describes a process whereby teamwork is harnessed in an organization in order to attain success in a project. This process entails techniques put together by employees within vertical hierarchical levels to accomplish a task. Hence, the employees involved do not have to be on that same level but vertical coordination ensures that teamwork exist between them so that each project phase is adequately managed for success to be achieved. Production, processing, and marketing are stages that appropriately managed for a successful project.

For example, the Chief Financial Officer (CFO) can collaborate with a line manager to determine real costs of production.

References for Vertical Coordination

Academic Research on Vertical coordination

Vertical coordination in agriculture., Mighell, R. L., & Lawrence, A. J. (1963). Vertical coordination in agriculture.

Vertical coordination in high-value commodities, Birthal, P. S., Joshi, P. K., & Gulati, A. (2005). International Food Policy Research Institute (IFPRI).

When does vertical coordination improve industrial purchasing relationships?, Buvik, A., & John, G. (2000). Journal of Marketing, 64(4), 52-64.

Globalization, privatization, and vertical coordination in food value chains in developing and transition countries, Swinnen, J. F., & Maertens, M. (2007). Agricultural economics, 37, 89-102.

Vertical coordination, financial structure, and the changing theory of the firm, Barry, P. J., Sonka, S. T., & Lajili, K. (1992). American Journal of Agricultural Economics, 74(5), 1219-1225.

Potential for cooperative involvement in vertical coordination and value‐added activities, Royer, J. S. (1995). Agribusiness, 11(5), 473-481.

The impact of vertical coordination on ex post transaction costs in domestic and international buyer-seller relationships, Buvik, A., & Andersen, O. (2002). Journal of International Marketing, 10(1), 1-24.

The vertical coordination continuum and the determinants of firm-level coordination strategy, Peterson, H. C., & Wysocki, A. F. (1997). Michigan State University, Department of Agricultural, Food, and Resource Economics.

Product architecture, inter‐firm vertical coordination and knowledge partitioning in the auto industry, Zirpoli, F., & Camuffo, A. (2009). European Management Review, 6(4), 250-264.

Market sanctions, monitoring and vertical coordination within retailer-manufacturer relationships: the case of retail brand suppliers, Collins, A., & Burt, S. (2003). European Journal of Marketing, 37(5/6), 668-689.

Vertical coordination, antitrust law, and international trade, Hamilton, S. F., & Stiegert, K. (2000). The Journal of Law and Economics, 43(1), 143-156.

Governance mechanisms and relationship productivity in vertical coordination for new product development, Eng, T. Y., & Wong, V. (2006). Technovation, 26(7), 761-769.

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