In the present economic circumstances, vertical integration can no longer act as a buffer against the vagaries of the environment. It is implied that there are only 2 ways for firms to operate to ensure the fulfillment of the value-added chain - either through competing in the marketplace or through vertical integration. Value-added partnerships (VAP) have been identified as an interim structure between these 2 extremes. In VAPs, individual companies cooperate with each other; they appreciate that they have a stake in their partners' success, and that the financial soundness of their trading partners is of paramount importance to their own performance. Handy (1989) has implied that the contractual fringe is often made up of ex-employees who have been laid off by the core organization and then contracted by it to carry out work for it. The Northern Ireland dairy industry and Moy Park Ltd. are 2 examples of the implementation of VAPs.