Cracking export markets with genetically modified crops

Abstract

Public and private policy responses to the introduction of genetically modified (GM) crops have differed across countries and regions, resulting in market fragmentation that is in conflict with the entry mode strategy of standardisation that has dominated the food distribution system for a century. To deal with the new market reality, an alternative entry mode strategy must be established which is capable of segregation – or identity preservation (IP) – of the commodity supply system. A multi‐mode strategy is presented that combines the economic transaction cost perspective with the institutional theory perspective. A seemingly paradoxical result emerges: standardisation is the solution to market differentiation. That is, an IP entry mode strategy must first be built on a foundation of standardised norms and protocols, which then makes it easier to target specific entry mode strategies to meet the divergent export market access rules resulting from the differential public policy and private strategies in various countries and regions.