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The Importance and Role of Trust in Agricultural Co-operation – Some Empirical Experiences from Hungary

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  • Szabo, Gabor G.
  • Baranyai, Zsolt
  • Takacs, Istvan

Abstract

This paper examines the relations of trust in agricultural cooperation from two aspects. On the one hand, it gives a short review of relevant literature, with special regard to agri-food economy. On the other hand, it uses the results of empirical survey for the analysis of trust in machinery sharing arrangements of Hungarian agricultural producers. In connection with this, the trust is examined in two dimensions: contractual and competence trust. Our results prove that there is a positive correlation between the level of trust and the farmers’ activity in cooperative agreements. It could also be proved that the trust need is very different in the different fields of cooperation. It is a tendency that the contractual trust is more important in more intensive, higher-dependence cooperation activities, while competence trust becomes into the foreground in the more extensive solutions.

Suggested Citation

  • Szabo, Gabor G. & Baranyai, Zsolt & Takacs, Istvan, 2011. "The Importance and Role of Trust in Agricultural Co-operation – Some Empirical Experiences from Hungary," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116068, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:116068
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    References listed on IDEAS

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    1. Ferto, Imre & Bakucs, Lajos Zoltan & Szabo, Gabor G., 2007. "The Choice of Marketing Cooperative in a Transition Agriculture," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9419, European Association of Agricultural Economists.
    2. Svein Ole Borgen, 2001. "Identification as a Trust-Generating Mechanism in Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(2), pages 209-228, June.
    3. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    4. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 5(01).
    5. Bakucs, Lajos Zoltan & Ferto, Imre & Szabo, Gabor G., 2007. "The Impact Of Trust On Cooperative Membership Performance And Satisfaction In The Hungarian Horticulture," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7820, European Association of Agricultural Economists.
    6. Wilson, Paul N., 2000. "Social Capital, Trust, And The Agribusiness Of Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
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    Keywords

    Agribusiness;

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