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The role of trust in the performance of supply chains: A dyad analysis of smallholder farmers and processing firms in the sugar industry in Swaziland

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  • Masuku, Micah B.
  • Kirsten, Johann F.

Abstract

The purpose of this paper is to investigate the role of trust in the performance of the sugar industry supply chain in Swaziland. The study utilized perceptions of 124 smallholder cane growers in the sugar industry in Swaziland. Items presented in a Likert type scale were used to measure cane growers' trust in the millers. Descriptive statistics involving cross tabulation were used to determine the impact of trust on the performance of the cane growers, which in turn has an influence on the performance of the whole sugar chain. The results indicate that farmers who have trust in the millers perform better than those without trust, and hence they contribute to the performance of the whole chain, in terms of more and good quality sugarcane supplied to the mill. This implies more sugar production and increased income to the industry as a whole. The results imply that a relationship founded on trust and mutual respect is more likely to succeed than a relationship of convenience supported by legal contingencies. Therefore, there is a need for honesty, fairness and absence of opportunistic behaviour between millers and cane growers for the industry to improve its performance.

Suggested Citation

  • Masuku, Micah B. & Kirsten, Johann F., 2004. "The role of trust in the performance of supply chains: A dyad analysis of smallholder farmers and processing firms in the sugar industry in Swaziland," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), pages 1-15, June.
    • Handle: RePEc:ags:agreko:10135
    DOI: 10.22004/ag.econ.10135
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    Cited by:

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    2. Thorpe, Jodie, 2018. "Procedural Justice in Value Chains Through Public–private Partnerships," World Development, Elsevier, vol. 103(C), pages 162-175.

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