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1 – 10 of 15Bonaventure Boniface, Amos Gyau and Randy Stringer
Price satisfaction is an influential factor in competitive performance and business success. Strong price satisfaction enhances and sustains high quality business relationships…
Abstract
Purpose
Price satisfaction is an influential factor in competitive performance and business success. Strong price satisfaction enhances and sustains high quality business relationships, leading to improved profits for chain participants. The purpose of this paper is to explore the dimensions of price satisfaction in the context of the Malaysian dairy industry. The aim is to determine which dimensions of price satisfaction affect relationship performance between Malaysian dairy producers and the dairy processers who purchase their milk.
Design/methodology/approach
In total, eight hypotheses are tested using partial least square methods on survey results from 133 dairy producers in Malaysia.
Findings
The study results suggest that relative price, price‐quality ratio and price fairness influence producers' loyalty and improved business relationship performance.
Practical implications
To achieve long‐term, sustainable business relationships involving consistent high quality supplies, milk buyers need to understand and capture the price satisfaction dimensions.
Originality/value
The paper provides insights into the important linkages between price satisfaction and business performance in an agriculture industry.
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Amos Gyau, Achim Spiller and Christian Wocken
The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies and their…
Abstract
Purpose
The aim of this paper is to determine the relative importance of actual price and behavioural factors for the quality of the business relationship between German dairies and their milk suppliers.
Design/methodology/approach
The paper reports the results of field study involving 209 farmers in Lower Saxony and the northern section of North Rhine‐Westphalia regions in northwest Germany. These regions are the most important milk production centres in Germany.
Findings
The results indicate that, whereas behavioural factors, specifically relationship management practices and price satisfaction, have a positive influence on the quality of the business relationship between the farmers and the dairies, the actual price levels have no influence.
Practical implications
Actual prices paid to the farmers is not the most important factor which influences the quality of their relationship with the dairies but rather behavioural norms such as milk price satisfaction and relational norms. Dairies are advised to enhance price perception through price negotiations and transparency in order to facilitate quality relationship instead of through higher price payment alone.
Originality/value
This study is the first to integrate and compare the actual prices and behavioural variables to determine their relative importance and influence on relationship quality.
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The aim of this paper is to examine the nature of contractual relationships between farmers and buyers in the traditional and supermarket channels, and to explore determinants of…
Abstract
Purpose
The aim of this paper is to examine the nature of contractual relationships between farmers and buyers in the traditional and supermarket channels, and to explore determinants of farmers' commitment in the two channels.
Design/methodology/approach
The paper reports the results of a field study of 602 chili farmers in the largest chilli production area in Indonesia, West Java Province. The contractual arrangements were analyzed using descriptive statistics, while determinants of farmers' commitment were examined using factor analysis and Ordinary Least square (OLS) regression.
Findings
The contractual arrangements between farmers and traders in both traditional and supermarket channels are characterized by verbal agreements. Price is the main aspect of the contract in the traditional channel, while grading aspects are the most important aspects in the supermarket channel. Trust and satisfaction have significant influence on farmers' commitment in the two channels, while the actual price has no influence.
Practical implications
To improve farmers' commitment, traders should not only focus on absolute price, but also on building trust and satisfaction. Trust can be improved by providing payments on time and following through with their promises. Satisfaction can be improved by offering fair prices for farmers' products and providing quicker responses in handling farmers' concerns.
Originality/value
This study compares the trade relationships between traditional and supermarket channels. It incorporates actual price and behaviour variables in the analysis of farmers' commitment.
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The suppliers of fresh fruit and vegetable complain that their buyers in the retail segment of the market used certain undesirable and questionable business practices which are…
Abstract
Purpose
The suppliers of fresh fruit and vegetable complain that their buyers in the retail segment of the market used certain undesirable and questionable business practices which are not used by buyers in other segments. These undesirable practices may have negative effects on how the exporters perceive their relationship with the retailers compared with how they will perceive the non‐retail buyers. This paper aims to compare the perceived relationship quality of the retailer group of buyers with the buyers in the other categories of the fresh fruit and vegetable business between Ghana and Europe.
Design/methodology/approach
Using the literature on inter‐firm relationships as a basis, a structured questionnaire was designed and administered to 101 exporters in Ghana. Multivariate analysis of variance (MANOVA) procedure and post hoc test were used to determine the differences in the perceived relationship quality of the exporters classified according to their main European buyer type.
Findings
The empirical results from the study support the hypotheses that exporters have a lower perception of the quality of their relationship with retailers compared with the wholesalers and the food service firms. In addition, whereas differences in exporters' experience were observed depending on the type of European importer to whom they mainly sell, the size of the exporters does not differ. The paper concludes that, in the context of the fresh produce business, the level of perceived power exploitation may differ depending on the type of business organisation or the position of the firm in the supply chain.
Originality/value
It is recommended that export firms need to examine the category to which their main buyer belongs before they make relationship‐specific investments. The results also provide a guide for policy makers and antitrust bodies in the various European countries to be able to effectively target their policies to address unfair business practices.
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Sarah Mutonyi, Karin Beukel, Amos Gyau and Carsten Nico Hjortsø
The purpose of this paper is to investigate which dimensions of price satisfaction influence producers’ trust in buyers and assess the mediating role of such trust in the…
Abstract
Purpose
The purpose of this paper is to investigate which dimensions of price satisfaction influence producers’ trust in buyers and assess the mediating role of such trust in the relationship between price satisfaction and producer loyalty in fresh fruit supply chains.
Design/methodology/approach
A cross-sectional study design using both semi-structured interviews and structured questionnaires was used. The study was conducted in the eastern part of Kenya and included 600 smallholders. Data was analysed using structural equation modelling.
Findings
The results show that price fairness, price reliability, and relative price are dimensions of price satisfaction that affect producers’ trust in the buyer. Moreover, trust between the producer and the buyer is found to be a strong mediator between price satisfaction and producer loyalty. The findings support recent studies about trust and its mediating role.
Research limitations/implications
The paper is based on a cross-sectional study design, limiting the causal inferences which can be drawn. Producers’ preferences change with time and future studies should be based on longitudinal designs.
Originality/value
This paper shows the relationship between the multidimensional nature of price satisfaction and producer loyalty with trust as a mediating variable in the business-to-business (B2B) context. Although B2B relationships have been shown to be of great importance for smallholders in enhancing business performance with their buyers, little attention has been given to the role of trust as a mediator. This study offers interesting insights into the how trust plays a mediating role between price satisfaction and loyalty in a developing country context.
Simon Somogyi, Amos Gyau, Elton Li and Johan Bruwer
There are many factors which may influence the ability of wineries to build and maintain long‐term relationships (LTR) with their suppliers of grapes. The aim of this paper is to…
Abstract
Purpose
There are many factors which may influence the ability of wineries to build and maintain long‐term relationships (LTR) with their suppliers of grapes. The aim of this paper is to identify the most important factors which enhance LTR between Australian wineries and grape growers.
Design/methodology/approach
A qualitative in‐depth interview technique was employed with 13 Australian grape growers.
Findings
The relational dimensions of communication, goal compatibility and use of power were found to influence the relationship quality dimensions of trust and satisfaction, which are also linked to the level of commitment and hence long‐term relationship.
Practical implications
The Australian wine industry is currently suffering economic instability which has resulted in the demise of some relationships between grape growers and winemakers. However, economic misfortunes will no doubt change and inefficiencies will result if LTR are not maintained. These inefficiencies could prove detrimental as the Australian wine industry strives to produce regionally branded and higher quality wine products which are both grape grower derived element. Furthermore, issues related to communication frequency and reduction in trust have implications for communication strategies which may result in the reduction of winery grower liaison staff.
Originality/value
This paper offers a grape/grower‐winery perspective on buyer‐seller relationships. It moderates the theory on communication and its effect on trust and commitment. Furthermore it posits the issue of buyer size on relational dimension and outcomes, which has had little attention in the literature.
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Jason Donovan, Steven Franzel, Marcelo Cunha, Amos Gyau and Dagmar Mithöfer
In recent years, governments, donors, and NGOs have increasingly embraced value chain development (VCD) for stimulating economic growth and combating rural poverty. In line with…
Abstract
Purpose
In recent years, governments, donors, and NGOs have increasingly embraced value chain development (VCD) for stimulating economic growth and combating rural poverty. In line with the rise in interest, there has been a proliferation of guides for VCD. The purpose of this paper is to present the results of a review of 11 guides for value chain along six different dimensions, ranging from objectives and value chain definitions to monitoring impact. The paper concludes with suggestions for the use of guides based on local needs and context, and recommendations for future guide development.
Design/methodology/approach
The review compares the concepts and methods endorsed and it assesses the strengths and limitations of the guides for steering development practice.
Findings
Overall, the guides provide a useful framework for understanding markets and engaging with chain stakeholders, with a strong emphasis on strengthening institutions and achieving sustainability of interventions. However, the guides often lack discussions on the conditions necessary at different levels for VCD to advance development objectives and achieve that sustainability. The guides are designed to be implemented largely independently of the specific context, in which the chain is situated, despite the major implications context has for the design of interventions and overall success of the chain. Attention to mutual learning, whether related to tool design or the outcomes and impacts of VCD interventions, is limited.
Research limitations/implications
More critical reflection and debate is needed on the design of guides for VCD. The authors suggest three areas for this reflection and debate: concepts, methods, and tools for addressing the needs of the poor in value chains; tools for addressing variations in the context; and mechanisms for mutual learning on the design and implementation of VCD.
Originality/value
The paper concludes with various recommendations for guide authors and donors that support VCD.
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Joanita Kataike, Adrienn Molnar, Hans De Steur and Xavier Gellynck
The purpose of this paper is to analyze the influence of chain governance on chain performance among the chain members.
Abstract
Purpose
The purpose of this paper is to analyze the influence of chain governance on chain performance among the chain members.
Design/methodology/approach
The survey was conducted in a triadic context with 345 chain members (115 dairy farmers, 115 dairy cooperative managers, and 115 processors) of the dairy sector in Uganda. Data collection was performed through simple random sampling by survey questionnaires with the chain executives. SEM was used for data analysis.
Findings
The results revealed several chain governance structures (spot market, relational, contractual and mini integration) confirmed the hypothesized correlations on chain performance at different chain levels. The authors found a positive influence of relational governance on chain performance for all the chain members; however, the effect is stronger at the first supplier chain level.
Originality/value
This triadic chain approach makes an original contribution to the chain governance structures and chain performance literature in the supply chain context. Studies analyzing all aspects of chain governance structure and chain performance at three chain levels are limited.
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