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A structural equation modeling analysis of relational governance and economic performance in agri-food supply chains: evidence from the dairy sheep industry in Sardinia (Italy)

Author

Listed:
  • Luca Camanzi

    (University of Bologna)

  • Elisabetta Arba

    (University of Bologna)

  • Cosimo Rota

    (University of Bologna)

  • Cesare Zanasi

    (University of Bologna)

  • Giulio Malorgio

    (University of Bologna)

Abstract

This study investigates the factors affecting the inter-organizational relationships and governance of firms in agri-food supply chains and assesses the influence that the current conditions of vertical coordination have on the economic performance of these firms. Research hypotheses describing the causal effects between the environment, product characteristics, inter-organizational relationships, relational governance, and firm economic performance are formulated and tested using a structural equation modeling approach. Data were gathered from a questionnaire administered via a direct survey to both farmers and processors in a traditional high-quality dairy sheep supply chain in the Italian region of Sardinia: the Pecorino Romano Protected Designation of Origin. Results point out the role of informal contractual arrangements in this local production system characterized by social cohesion, entailing higher product quality and better economic performance. Further, the study highlights the role of trust as a key variable for attaining collaborative paths along the agri-food supply chain, particularly between farmers and processors.

Suggested Citation

  • Luca Camanzi & Elisabetta Arba & Cosimo Rota & Cesare Zanasi & Giulio Malorgio, 2018. "A structural equation modeling analysis of relational governance and economic performance in agri-food supply chains: evidence from the dairy sheep industry in Sardinia (Italy)," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-21, December.
    • Handle: RePEc:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0099-z
    DOI: 10.1186/s40100-018-0099-z
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    References listed on IDEAS

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    2. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2021. "Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    3. Adaku, Abigail Ampomah & Amanor-Boadu, Vincent, 2021. "Typology and performance of inter-organizational relationships among Ghanaian farmers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3), November.
    4. Sharma, Dabasis & Alam, Mohammad Jahangir & Begum, Ismat Ara & McKenzie, Andrew M., 2022. "Factors affecting the choice of governance structure along the vegetable value chain in Bangladesh," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(1), October.
    5. Danilo Gambelli & Francesco Solfanelli & Stefano Orsini & Raffaele Zanoli, 2021. "Measuring the Economic Performance of Small Ruminant Farms Using Balanced Scorecard and Importance-Performance Analysis: A European Case Study," Sustainability, MDPI, vol. 13(6), pages 1-13, March.
    6. Das, Gouranga G. & Ginting, Edimon & Horridge, Mark & Yamano, Takashi, 2023. "Growth Constraints and Structural Diversification for Kyrgyzstan Economy: Policy Analysis of Key Reforms and its Implications," GLO Discussion Paper Series 1250, Global Labor Organization (GLO).

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