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The strategic nature of the fresh fruit and vegetables (FFV) department for supermarkets and hypermarkets is unquestioned. Yet both practitioners and researchers have difficulty optimizing its performance. The purpose of this paper is to identify the key specific drivers of the performance of FFV departments with a special attention being paid to the deterioration of product quality.

The authors used a two-step inductive modelling process relying on interviews with experts from within the sector and a multiple case study of four FFV departments belonging to a French retail brand.

After highlighting that the deterioration of product quality on the shelves is a key particularity of FFV departments, the authors identify department upkeep and shrinkage control as key intermediate variables impacting the performance of FFV departments and show how these two parameters can be controlled using three main actionable levers: marketing, in-store logistics and procurement.

The discussion of managerial implications sheds light on other phenomena requiring further investigation: team management practices, the buying role of the department manager and tailored criteria for assessing performance.

The research shows managers that optimizing department upkeep allows turnover to be generated which exceeds the sector average without impeding the productivity of the department. The authors stress that it is imperative to control shrinkage in order to meet margin performance objectives.

This research is a step forward because it takes account of the elements distinguishing FFV from other fresh products to highlight the factors underlying high performance levels.

While organization theories acknowledge the influence of specific assets on dependence and increasingly represent the latter as a structure of mutual dependence (dependence of A on B and dependence of B on A), there is, to the best of our knowledge, no empirical test concerning the impact of specific assets on a structure of dependence. Our chapter aims to fill this gap. It is all the more original in that it considers a case study where dependence changes sides according to the characteristics of the transaction. We examine the dependence between Chilean exporters and European importers when trading fresh produce. Such dependence originates with the need for just-in-time coordination and compliance with a compelling demand in a context of high price uncertainty.

Using a unique dataset from international trade in fresh produce between Chile and the rest of the world, we justify the use of a concentration sales ratio as a proxy for dependence and test the influence of a variety of specific assets on the side of dependence by using both categorical and dimensional approaches. Original findings show that certain transaction attributes have a strong influence on the side of dependence. In particular, the higher the frequency and the level of specific assets such as volume, niche varieties, and joint sales with other products, in the transaction, the greater the likelihood of a higher ratio of dependence for the importer rather than the exporter. Conversely, in the event of low levels of specific assets and less frequent operations, dependence tends to be greater on the side of the exporter.

To understand the impact of product specificity on organizational practices of retailers at the store level.

An Aokian framework is used that enables one to discriminate between food products according to their informational properties, and to connect these properties with organizational choices of centralization/decentralization.

Emphasizes the existing tension between the dominant “assimilation” organization pattern and the “encapsulation” pattern which fits better in with some specific product departments.

Proposals are confronted with empirical data coming from professional press and experts interviews. Further empirical research is needed to consolidate the findings.

The paper points out the need to differentiate the management of departments according to their product specificity.

The paper stresses the impact of product specificity on department organization. It can be useful for the design of organizational mechanisms: work organization, incentives and career paths.