Agribusiness Firm Reactions to Regulations: The Case of Investments in Traceability Systems

Matthias Heyder, Thorsten Hollmann-Hespos & Ludwig Theuvsen
The regulatory framework of food production has changed a lot in recent years. As a result, traceability of food products has become mandatory in the European Union, nonetheless leaving room for more advanced solutions. This study answers the question what exactly determines firms' investments in traceability systems by first developing a theoretical framework - the so-called Tracking and Tracing System Investment Model - and then analyzing empirical data from the German food industry that provide...
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