IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/31742.html
   My bibliography  Save this article

Improving working relationships for smallholder farmers in formal organic crop supply chains: Evidence from KwaZulu-Natal, South Africa

Author

Listed:
  • Darroch, Mark A.G.
  • Mushayanyama, T.

Abstract

The 48 members of the Ezemvelo Farmers' Organisation (EFO) in KwaZulu-Natal, South Africa (SA), that are fully-certified as organic farmers were surveyed in October-December 2004 to assess their perceived levels of satisfaction, trust, cooperation and commitment in a formal supply chain producing amadhumbes (a traditional vegetable tuber), potatoes and sweet potatoes for a major SA supermarket group. Empirical recursive models show that a high level of satisfaction in the working relationship results in these farmers trusting the pack-house agent more. High levels of trust, in turn, lead to higher levels of both commitment to, and cooperation in, the supply chain. A simultaneous-equation model showed that EFO members with higher levels of commitment tend to be more cooperative, and that members with higher levels of cooperation tend to be more committed toward the working relationship. These results suggest that strategies to improve the working relationship with the pack-house agent need to promote satisfaction, trust, cooperation and commitment. For example, co-investment in better crop storage facilities at farm-level would promote satisfaction and hence trust. There is also scope for more cooperation in the planning of new organic crop products to grow and market, and to remove some price uncertainty by giving EFO farmers more information about prices that they will be paid by the pack-house in this supply chain.

Suggested Citation

  • Darroch, Mark A.G. & Mushayanyama, T., 2006. "Improving working relationships for smallholder farmers in formal organic crop supply chains: Evidence from KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(3), pages 1-22, September.
    • Handle: RePEc:ags:agreko:31742
    DOI: 10.22004/ag.econ.31742
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31742/files/45030339.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31742?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jones, Eugene, 1985. "The Use of Principal Components in Simultaneous Equations: An Empirical Application," 1985 Annual Meeting, August 4-7, Ames, Iowa 278516, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    3. Claro, Danny Pimentel & Hagelaar, Geoffrey J.L.F. & Kemp, Ron G.M. & Omta, S.W.F. (Onno), 2003. "The Impact of Downstream Network Subgroups on Collaboration and Performance: A Survey of Buyer-Supplier Relationships in the Dutch Flower Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 6(2), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Watabaji, Mulugeta D. & Molnar, Adrienn & Dora, Manoj K. & Gellynck, Xavier, 2016. "The influence of value chain integration on performance: an empirical study of the malt barley value chain in Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    2. Deepak Bhagat & U.R. Dhar, 2014. "Relationship Dynamics in the Pineapple Supply Chain: Empirical Evidence from the Garo Hills of Meghalaya," Global Business Review, International Management Institute, vol. 15(4), pages 747-765, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
    2. Zur, Andrew & Leckie, Civilai & Webster, Cynthia M., 2012. "Cognitive and affective trust between Australian exporters and their overseas buyers," Australasian marketing journal, Elsevier, vol. 20(1), pages 73-79.
    3. Hoang Linh VU & Dominique BONET FERNANDEZ, 2014. "Proposition d’un modèle de relations producteur-distributeur : une application à la gestion des conflits en contexte interculturel," Working Papers 2014-231, Department of Research, Ipag Business School.
    4. Yadong Luo & Yi Liu & Jiaqi Xue, 2009. "Relationship Investment and Channel Performance: An Analysis of Mediating Forces," Journal of Management Studies, Wiley Blackwell, vol. 46(7), pages 1113-1137, November.
    5. Bart S. Vanneste & Phanish Puranam & Tobias Kretschmer, 2014. "Trust over time in exchange relationships: Meta-analysis and theory," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1891-1902, December.
    6. Artz, Kendall W. & Brush, Thomas H., 2000. "Asset specificity, uncertainty and relational norms: an examination of coordination costs in collaborative strategic alliances," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 337-362, April.
    7. Selin Kucukkancabas & Ayse Akyol & Berk Ataman, 2009. "Examination of the effects of the relationship marketing orientation on the company performance," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(3), pages 441-450, May.
    8. Gatignon, Aline & Gatignon, Hubert, 2010. "Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action," Journal of Retailing, Elsevier, vol. 86(3), pages 232-247.
    9. Li, Jizhong & Jiang, Fuming & Shen, Jie, 2016. "Institutional distance and the quality of the headquarters–subsidiary relationship: The moderating role of the institutionalization of headquarters’ practices in subsidiaries," International Business Review, Elsevier, vol. 25(2), pages 589-603.
    10. Paul A. Pavlou & David Gefen, 2004. "Building Effective Online Marketplaces with Institution-Based Trust," Information Systems Research, INFORMS, vol. 15(1), pages 37-59, March.
    11. repec:dau:papers:123456789/4215 is not listed on IDEAS
    12. Deonir De Toni & Gabriel Sperandio Milan & Geverson Custódio Costa & Fabiano Larentis, 2015. "Existing Relational Practice Between a Manufacturer and its Distributors and the Perception of the Relationship Value in the Dyad," Brazilian Business Review, Fucape Business School, vol. 12(6), pages 48-71, November.
    13. Ludwig Bstieler & Martin Hemmert, 2010. "Trust formation in Korean new product alliances: How important are pre-existing social ties?," Asia Pacific Journal of Management, Springer, vol. 27(2), pages 299-319, June.
    14. Inman, J. Jeffrey & Nikolova, Hristina, 2017. "Shopper-Facing Retail Technology: A Retailer Adoption Decision Framework Incorporating Shopper Attitudes and Privacy Concerns," Journal of Retailing, Elsevier, vol. 93(1), pages 7-28.
    15. Crosno, Jody L. & Tong, Pui Ying, 2018. "Just going through the motions? An empirical investigation of control, compliance, and performance in franchisor-franchisee relationships," Journal of Business Research, Elsevier, vol. 92(C), pages 360-373.
    16. Kim, Keysuk & Frazier, Gary L., 1997. "Measurement of distributor commitment in industrial channels of distribution," Journal of Business Research, Elsevier, vol. 40(2), pages 139-154, October.
    17. Bauer, Florian & King, David & Matzler, Kurt, 2016. "Speed of acquisition integration: Separating the role of human and task integration," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 150-165.
    18. de Ruyter, Ko & Wetzels, Martin, 2000. "The Marketing-Finance Interface: A Relational Exchange Perspective," Journal of Business Research, Elsevier, vol. 50(2), pages 209-215, November.
    19. Magnani, Giovanna & Zucchella, Antonella & Strange, Roger, 2019. "The dynamics of outsourcing relationships in global value chains: Perspectives from MNEs and their suppliers," Journal of Business Research, Elsevier, vol. 103(C), pages 581-595.
    20. Bart S. Vanneste & Phanish Puranam, 2010. "Repeated Interactions and Contractual Detail: Identifying the Learning Effect," Organization Science, INFORMS, vol. 21(1), pages 186-201, February.
    21. Pennings, Joost M. E., 2004. "A marketing-finance approach towards industrial channel contract relationships: a model and application," Journal of Business Research, Elsevier, vol. 57(6), pages 601-609, June.

    More about this item

    Keywords

    Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:31742. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.