IDEAS home Printed from https://ideas.repec.org/p/ags/aare11/100699.html
   My bibliography  Save this paper

Determinants Of Trust In The Indonesian Potato Industry: A Comparison Among Groups Of Potato Farmers

Author

Listed:
  • Puspitawati, Eka

Abstract

Indonesia’s potato industry is undergoing a rapid transformation, presenting producers with new and profitable opportunities to participate in sales to the modern channels. However, few farmers are involved in the new channels. This study offers an analysis of three groups of potato farmers’ perceptions of trust in their buyers. The aim is to understand the many different ways producers can enter modern chains and how different channels suit the individual characteristics of different producers. We surveyed 50 farmer field schools (FFS) producers, 60 Indofood suppliers, and 192 general potato farmers (GPF) in the largest potato producing area in Indonesia, West Java. Using MANOVA and linear regression methods, the study reveals that flexibility and dependence are determinate factors of trust in the three groups. Particularly among the FFS producers, relative price and firm size are factors identified to increase the farmers’ trust. Farmers contracting with Indofood establish the relationship with the firm in terms of reputation and flexibility. On the other hand, the GPF has more concerns about buyers offering price transparency and joint problem solving. This article provides a conceptual model and an empirical analysis of the buyer-seller relationship in the potato industry in Indonesia.

Suggested Citation

  • Puspitawati, Eka, 2011. "Determinants Of Trust In The Indonesian Potato Industry: A Comparison Among Groups Of Potato Farmers," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100699, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare11:100699
    DOI: 10.22004/ag.econ.100699
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/100699/files/Puspitawati%20E.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.100699?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. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    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. Dušanka Gajdić & Željka Mesić & Kristina Petljak, 2021. "Preliminary Research about Producers’ Perceptions of Relationship Quality with Retailers in the Supply Chain of Organic Food Products in Croatia," Sustainability, MDPI, vol. 13(24), pages 1-41, 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. Victor Hiller, 2014. "Gender Inequality, Endogenous Cultural Norms, and Economic Development," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 455-481, April.
    2. Chong, Alberto E., 2006. "Does It Matter How People Speak?," IDB Publications (Working Papers) 1946, Inter-American Development Bank.
    3. Roberta Dessì & Salvatore Piccolo, 2008. "Two is Company, N is a Crowd? Merchant Guilds and Social Capital," CSEF Working Papers 202, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 12 Jul 2009.
    4. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    5. Litina, Anastasia, 2012. "Unfavorable land endowment, cooperation, and reversal of fortune," MPRA Paper 39702, University Library of Munich, Germany.
    6. Leonardo Becchetti & Pierluigi Conzo & Alessandro Romeo, 2014. "Violence, trust, and trustworthiness: evidence from a Nairobi slum," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 283-305, January.
    7. Arturo Galindo & Alberto Chong & César Calderón, 2001. "Structure and Development of Financial Institutions and Links with Trust: Cross-Country Evidence," Research Department Publications 4251, Inter-American Development Bank, Research Department.
    8. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    9. Jens Hagendorff & Sonya Lim & Duc Duy Nguyen, 2023. "Lender Trust and Bank Loan Contracts," Management Science, INFORMS, vol. 69(3), pages 1758-1779, March.
    10. Arvind Ashta & Djamchid Assadi, 2009. "An Analysis of European Online micro-lending Websites," Working Papers CEB 09-059.RS, ULB -- Universite Libre de Bruxelles.
    11. Hongjin Zhu & Yue Pan & Jiaping Qiu & Jinli Xiao, 2022. "Hometown Ties and Favoritism in Chinese Corporations: Evidence from CEO Dismissals and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 176(2), pages 283-310, March.
    12. Fabian Kosse & Thomas Deckers & Pia Pinger & Hannah Schildberg-Hörisch & Armin Falk, 2020. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 434-467.
    13. Yaron Zelekha & Léo-Paul Dana, 2019. "Social Capital Versus Cultural Capital Determinants of Entrepreneurship: An Empirical Study of the African Continent," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 28(2), pages 250-269, September.
    14. Philippe Aghion & Yann Algan & Pierre Cahuc & Andrei Shleifer, 2010. "Regulation and Distrust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1015-1049.
    15. van Hoorn, Andre, 2013. "Trust and Organizational Design: Explaining Cross-National Differences in Work Autonomy," MPRA Paper 80016, University Library of Munich, Germany.
    16. A. Arrighetti & G. Seravalli & G. Wolleb, 2001. "Social Capital, Institutions and Collective Action Between Firms," Economics Department Working Papers 2001-EP08, Department of Economics, Parma University (Italy).
    17. He, Quqiong & Pan, Ying & Sarangi, Sudipta, 2018. "Lineage-based heterogeneity and cooperative behavior in rural China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 248-269.
    18. Chaudhuri, Ananish & Sopher, Barry & Strand, Paul, 2002. "Cooperation in social dilemmas, trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 23(2), pages 231-249, April.
    19. Naresh Khatri, 2009. "Consequences of Power Distance Orientation in Organisations," Vision, , vol. 13(1), pages 1-9, January.
    20. Luis Medrano-Adán & Vicente Salas-Fumás & J. Sanchez-Asin, 2015. "Heterogeneous entrepreneurs from occupational choices in economies with minimum wages," Small Business Economics, Springer, vol. 44(3), pages 597-619, March.

    More about this item

    Keywords

    Crop Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:aare11:100699. 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/aaresea.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.