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Indigenous Social Capital in Traditional Agro-Food Marketing Systems: The Role of Trust in Governance Structure Selection in the Philippine Highlands

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  • Milagrosa, Aimee
  • Slangen, Louis H.G.
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    Abstract

    The decision-making of indigenous Ibaloi and Kankanaey growers in seven highland communities of Benguet, Cordillera region Philippines was captured in three models. The models explain factors affecting their selection of primary transacting partners. The farmers’ three main primary marketing links are commissioners, wholesalers and contractors. Commissioner-led governance structures are market-based and the relationship is motivated by profit. Wholesaler-led governance structures are partly-market and partly-hybrid-based and are characterized by the motivations of profit, relationship and safeguard benefits. Contractor-led transactions are hybrid modes of organization that are motivated strongly by trust. In governance structure selection, farmers attempt to balance expected profit and relationship factors in their choice.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 99th Seminar, February 8-10, 2006, Bonn, Germany with number 7734.

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    Date of creation: 2006
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    Handle: RePEc:ags:eaae99:7734

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    Keywords: social capital; governance structure; decision-making; vegetable marketing; Philippines; Agribusiness; Agricultural and Food Policy;

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    1. Scott E. Masten & Stéphane Saussier, 2000. "Econometrics of Contracts : an Assessment of Developments in the Empirical Literature on Contracting," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 215-236.
    2. Ferto, Imre & Szabo, Gabor G., 2002. "The Choice Of The Supply Channels In Hungarian Fruit And Vegetable Sector," 2002 Annual meeting, July 28-31, Long Beach, CA 19647, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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