An Empirical Study on Governance Structure Choices in China's Pork Supply Chain

China´s pork chain is changing in several ways. Specialized and commercial productions are gaining importance although small scale (backyard) pig production still dominates production. Similarly, small slaughterhouses continue transactions with pig producers in spot market relationships, while big pork slaughtering and processing companies are actively exploring and advancing different forms of integration. This study explains the governance structure choices in China´s pork chain from both transaction cost economics and transaction value analysis perspec-tives using Structural Equation Modeling (SEM). It is revealed that governance choices in China´s pork chain are the joint effect of transaction cost and collaborative advantages.