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Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

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  • Boniface, Bonaventure
  • Gyau, Amos
  • Stringer, Randy
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    Abstract

    Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship.

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    File URL: http://mpra.ub.uni-muenchen.de/24420/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24420.

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    Date of creation: 17 Dec 2009
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    Handle: RePEc:pra:mprapa:24420

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    Keywords: Long term relationships; Relationship Quality; Dairy Industry; Malaysia;

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    1. Dong, Fengxia, 2005. "Outlook for Asian Dairy Markets: The Role of Demographics, Income, and Prices," Staff General Research Papers 12379, Iowa State University, Department of Economics.
    2. Awudu Abdulai & Eliud A. Birachi, 2009. "Choice of Coordination Mechanism in the Kenyan Fresh Milk Supply Chain," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 103-121.
    3. Kennya B. Siqueira & Carlos Arthur B. da Silva & Danilo R.D. Aguiar, 2008. "Viability of introducing milk futures contracts in Brazil: a multiple criteria decision analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 491-509.
    4. Robert D. Weaver, 2008. "Collaborative pull innovation: origins and adoption in the new economy," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 388-402.
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