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Network strength, transaction-specific investments, inter-personal trust, and relationship satisfaction in Chinese agri-food SMEs

Author

Listed:
  • Hualiang Lu
  • Shuyi Feng
  • Jacques H. Trienekens
  • S.W.F. Omta

Abstract

Purpose - The purpose of this paper is to investigate the effects of network strength, transaction-specific investments and inter-personal trust on business relationship satisfaction for small-and-medium-sized enterprises (SMEs) involved in agri-food processing and exporting in China. Design/methodology/approach - Survey data collected from 80 agri-food SMEs in Jiangsu Province were used for empirical testing. The authors applied an ordered logit regression approach for model estimation. Findings - The results demonstrate that strong Practical implications - Business relationships play a critical role in the modern market environment. Relational arrangements (based on Originality/value - The paper extends our understanding of relationship (

Suggested Citation

  • Hualiang Lu & Shuyi Feng & Jacques H. Trienekens & S.W.F. Omta, 2012. "Network strength, transaction-specific investments, inter-personal trust, and relationship satisfaction in Chinese agri-food SMEs," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(3), pages 363-378, August.
  • Handle: RePEc:eme:caerpp:v:4:y:2012:i:3:p:363-378
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    References listed on IDEAS

    as
    1. Hualiang Lu & Shuyi Feng & Jacques H. Trienekens & S.W.F. (Onno) Omta, 2008. "Performance in vegetable supply chains: the role of Guanxi networks and buyer-seller relationships," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 253-274.
    2. Willem Ziggers, Gerrit & Trienekens, Jacques, 1999. "Quality assurance in food and agribusiness supply chains: Developing successful partnerships," International Journal of Production Economics, Elsevier, vol. 60(1), pages 271-279, April.
    3. Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
    4. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    5. Chenting Su & Zhilin Yang & Guijun Zhuang & Nan Zhou & Wenyu Dou, 2009. "Interpersonal influence as an alternative channel communication behavior in emerging markets: The case of China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(4), pages 668-689, May.
    6. Chao Chen & Xiao-Ping Chen, 2009. "Negative externalities of close guanxi within organizations," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 37-53, March.
    7. Standifird, Stephen S. & Marshall, R. Scott, 2000. "The transaction cost advantage of guanxi-based business practices," Journal of World Business, Elsevier, vol. 35(1), pages 21-42, April.
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