While the socio-economics of the coffee industry has received much attention, this article presents a novel analysis of B2B relationships in order to understand what determines coffee roasters' sourcing strategies. The theoretical framework is based on new institutional economics and relational contracting. The methodology is qualitative and uses a multiple-case approach. The evidence shows that different modes of transactions are devised in order to cope with the business uncertainty and to guarantee supplies of the coffee with the desired quality attributes. Traders offer to roasters guarantees that growers and exporters cannot provide. Relational components in transactions are essential to reduce uncertainty and transaction costs, and are important coordination mechanisms in trader-roaster linkages and even more so in the exporter-roaster interface. Roasters devise stronger coordination mechanisms with suppliers when the quality reputation of the core product is critical in their business strategy.

Argenti, P.A. (2004) ‘Collaborating with activists: How Starbucks works with NGOs’, California Management Review 47(1): 91-116.

Barzel, Y. (1985) ‘Transaction costs: Are they just costs?’ Journal of Institutional and Theoretical Economics 141: 27-48.

Cox, A., Chicksand, D. and Yang, T. (2007) ‘The proactive alignment of sourcing with marketing strategies: A food service case’, Supply Chain Management: An International Journal 12: 321-33.

Databank Cerved Group (2010) ‘Caffe’ Smart: analisi dei segmenti e quote di mercato [Analysis of the segments and market shares], Databank Cerved Group, Milan.

Daviron, B. and Ponte, S. (2005) The Coffee Paradox: Global Markets, Commodity Trade and Elusive Promise of Development, Zed Books, London.

Eisenhardt, K.M. (1989) ‘Building theory from case study research’, Academy of Management 14: 535-50.

ICO (International Coffee Organization) (2009) Statistics: Historical Data [online], available from: http://www.ico.org/new_historical.asp [accessed 18 March 2011]. http://www.ico.org/new_historical.asp

Patton, M.Q. (1990) Qualitative Evaluations and Research Methods, Sage Publications, Newbury Park, CA.

Pimentel Claro, D., Hagelaar, G. and Omta, O. (2003) ‘The determinants of relational governance and performance: How to manage business relationships?’ Industrial Marketing Management 32: 703-16.

Ponte, S. (2002) ‘The latte revolution? Regulation, markets and consumption in the global coffee chain’, World Development 30: 1099-122.

Poole, N.D., Carrasco-Martínez, L.M. and Jiménez, F.V. (2007) ‘Quality perceptions under evolving information conditions: Implications for diet, health and consumer satisfaction’, Food Policy 32: 175-88.

Rindfleish, A. and Heide, J.B. (1997) ‘Transaction cost analysis: Past, present and future applications’, Journal of Marketing 61: 30-54.

Williamson, O.E. (1985) The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Collier Macmillan Publisher, London.

Argenti, P.A. (2004) ‘Collaborating with activists: How Starbucks works with NGOs’, California Management Review 47(1): 91-116.

Barzel, Y. (1985) ‘Transaction costs: Are they just costs?’ Journal of Institutional and Theoretical Economics 141: 27-48.

Cox, A., Chicksand, D. and Yang, T. (2007) ‘The proactive alignment of sourcing with marketing strategies: A food service case’, Supply Chain Management: An International Journal 12: 321-33.

Databank Cerved Group (2010) ‘Caffe’ Smart: analisi dei segmenti e quote di mercato [Analysis of the segments and market shares], Databank Cerved Group, Milan.

Daviron, B. and Ponte, S. (2005) The Coffee Paradox: Global Markets, Commodity Trade and Elusive Promise of Development, Zed Books, London.

Eisenhardt, K.M. (1989) ‘Building theory from case study research’, Academy of Management 14: 535-50.

ICO (International Coffee Organization) (2009) Statistics: Historical Data [online], available from: http://www.ico.org/new_historical.asp [accessed 18 March 2011]. http://www.ico.org/new_historical.asp

Patton, M.Q. (1990) Qualitative Evaluations and Research Methods, Sage Publications, Newbury Park, CA.

Pimentel Claro, D., Hagelaar, G. and Omta, O. (2003) ‘The determinants of relational governance and performance: How to manage business relationships?’ Industrial Marketing Management 32: 703-16.

Ponte, S. (2002) ‘The latte revolution? Regulation, markets and consumption in the global coffee chain’, World Development 30: 1099-122.

Poole, N.D., Carrasco-Martínez, L.M. and Jiménez, F.V. (2007) ‘Quality perceptions under evolving information conditions: Implications for diet, health and consumer satisfaction’, Food Policy 32: 175-88.

Rindfleish, A. and Heide, J.B. (1997) ‘Transaction cost analysis: Past, present and future applications’, Journal of Marketing 61: 30-54.

Williamson, O.E. (1985) The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Collier Macmillan Publisher, London.

Argenti, P.A. (2004) ‘Collaborating with activists: How Starbucks works with NGOs’, California Management Review 47(1): 91-116.

Barzel, Y. (1985) ‘Transaction costs: Are they just costs?’ Journal of Institutional and Theoretical Economics 141: 27-48.

Cox, A., Chicksand, D. and Yang, T. (2007) ‘The proactive alignment of sourcing with marketing strategies: A food service case’, Supply Chain Management: An International Journal 12: 321-33.

Databank Cerved Group (2010) ‘Caffe’ Smart: analisi dei segmenti e quote di mercato [Analysis of the segments and market shares], Databank Cerved Group, Milan.

Daviron, B. and Ponte, S. (2005) The Coffee Paradox: Global Markets, Commodity Trade and Elusive Promise of Development, Zed Books, London.

Eisenhardt, K.M. (1989) ‘Building theory from case study research’, Academy of Management 14: 535-50.

ICO (International Coffee Organization) (2009) Statistics: Historical Data [online], available from: http://www.ico.org/new_historical.asp [accessed 18 March 2011]. http://www.ico.org/new_historical.asp

Patton, M.Q. (1990) Qualitative Evaluations and Research Methods, Sage Publications, Newbury Park, CA.

Pimentel Claro, D., Hagelaar, G. and Omta, O. (2003) ‘The determinants of relational governance and performance: How to manage business relationships?’ Industrial Marketing Management 32: 703-16.

Ponte, S. (2002) ‘The latte revolution? Regulation, markets and consumption in the global coffee chain’, World Development 30: 1099-122.

Poole, N.D., Carrasco-Martínez, L.M. and Jiménez, F.V. (2007) ‘Quality perceptions under evolving information conditions: Implications for diet, health and consumer satisfaction’, Food Policy 32: 175-88.

Rindfleish, A. and Heide, J.B. (1997) ‘Transaction cost analysis: Past, present and future applications’, Journal of Marketing 61: 30-54.

Williamson, O.E. (1985) The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Collier Macmillan Publisher, London.

Argenti, P.A. (2004) ‘Collaborating with activists: How Starbucks works with NGOs’, California Management Review 47(1): 91-116.

Barzel, Y. (1985) ‘Transaction costs: Are they just costs?’ Journal of Institutional and Theoretical Economics 141: 27-48.

Cox, A., Chicksand, D. and Yang, T. (2007) ‘The proactive alignment of sourcing with marketing strategies: A food service case’, Supply Chain Management: An International Journal 12: 321-33.

Databank Cerved Group (2010) ‘Caffe’ Smart: analisi dei segmenti e quote di mercato [Analysis of the segments and market shares], Databank Cerved Group, Milan.

Daviron, B. and Ponte, S. (2005) The Coffee Paradox: Global Markets, Commodity Trade and Elusive Promise of Development, Zed Books, London.

Eisenhardt, K.M. (1989) ‘Building theory from case study research’, Academy of Management 14: 535-50.

ICO (International Coffee Organization) (2009) Statistics: Historical Data [online], available from: http://www.ico.org/new_historical.asp [accessed 18 March 2011]. http://www.ico.org/new_historical.asp

Patton, M.Q. (1990) Qualitative Evaluations and Research Methods, Sage Publications, Newbury Park, CA.

Pimentel Claro, D., Hagelaar, G. and Omta, O. (2003) ‘The determinants of relational governance and performance: How to manage business relationships?’ Industrial Marketing Management 32: 703-16.

Ponte, S. (2002) ‘The latte revolution? Regulation, markets and consumption in the global coffee chain’, World Development 30: 1099-122.

Poole, N.D., Carrasco-Martínez, L.M. and Jiménez, F.V. (2007) ‘Quality perceptions under evolving information conditions: Implications for diet, health and consumer satisfaction’, Food Policy 32: 175-88.

Rindfleish, A. and Heide, J.B. (1997) ‘Transaction cost analysis: Past, present and future applications’, Journal of Marketing 61: 30-54.

Williamson, O.E. (1985) The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Collier Macmillan Publisher, London.