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Building producer loyalty in Malaysia's fresh milk supply chain

Author

Listed:
  • Boniface, Bonaventure
  • Gyau, Amos
  • Stringer, Randy
  • Umberger, Wendy J.

Abstract

The paper presents results from a survey of 133 dairy producers in Malaysia, and identifies how Malaysian milk buyers can build a loyal customer base with their suppliers as a means to secure uninterrupted milk supplies. A structural equation model was conducted to test the conceptual model using AMOS 17.0 software. The results show that whereas timely and collaborative communication, price satisfaction and cultural fit influence positively suppliers’ contractual and competence trust in their buyers, power dependency negatively influences competence trust. Furthermore, suppliers’ trust in their buyers will eventually lead to loyalty. The principal implication is that milk processors and other buyers need to engage in collaborative communication with the dairy farmers to ensure continuous and uninterrupted supply.

Suggested Citation

  • Boniface, Bonaventure & Gyau, Amos & Stringer, Randy & Umberger, Wendy J., 2010. "Building producer loyalty in Malaysia's fresh milk supply chain," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-19.
    • Handle: RePEc:ags:auagre:114423
    DOI: 10.22004/ag.econ.114423
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    References listed on IDEAS

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    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.
    2. Karim, Zainab Mohd & Arumugam, Nalini & Bonaventure, Boniface, 2016. "The Sustainability Practices among Dairy Farmers: The Case of Johor," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(1), March.
    3. Marcelo Ferreira & Clea Macagnan & Daniel Vancin & Ana Toaldo, 2021. "Technical assistance: A determinant of cooperative member loyalty," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(4), pages 649-668, December.
    4. Boniface, Bonaventure & Umberger, Wendy J., 2012. "Factors influencing Malaysian consumers’ consumption of dairy products," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124243, Australian Agricultural and Resource Economics Society.
    5. 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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