Abstract
The insertion of small and medium farmers market has been stimulated by institutions concerned with rural development. This article aims to scrutinize the standardization, legalization required for RAs as a strategy for competitive entry in the market. Using elements in Industrial Economics, New Institutional Economics, Economic Sociology, and with emphasis on the Theory of Conventions, to conduct research, the study draws upon a sample of 40 rural agro-industries and the results show that obedience to the law provides benefits in the short term, but may present a threat to the competitiveness of ARs in the long run.
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