This article seeks to understand how to configure governance structures, by considering transaction costs (TCE) and different capacities and resources (RBV), in relationships between producers and processors in the case of distilleries in the state of Paraná. For this, a qualitative and descriptive study was conducted, employing both a cross-sectional and longitudinal perspective. The study involved semi-structured interviews with managers and agricultural producers associated with five of the seven distilleries located in the state of Paraná. Unusually, the results showed a strong tendency towards vertical integration, occurring for the most part through partnership-type leases. Other choices of organizational arrangement included agricultural partnership contracts, followed by supply contracts. Location and distance of the average contracted properties were the most cited strategic resources capable of generating competitive advantages for the distilleries. Others included capacity expansion (due to soil fertility, abundance of mechanized areas, and absence of competitors), transparency and reputation, loyalty, and tradition and knowledge. Complementarity arises from the consideration that distilleries' internal resources and capabilities such as location, distance, knowledge influence the choice of more vertically-integrated governance structures. These in turn are chosen to exploit, protect, and gain competitive advantage obtained through control over those resources.
governance structures; transaction costs economics; resourced-based view; complementarity; distilleries in Paraná State
