Exploring the antecedents and consequences of trust between vegetable farmers and their preferred trading partners in Southern Mindanao

Abstract

It is widely accepted that trust is the critical determinant of a good buyer-seller relationship. Using trust as the dependent variable, various measures of the farmers' satisfaction with the exchange, power-dependence and the relationship specific investments preferred trading partners provided to facilitate the relationship were regressed against trust. The key antecedent to trust was the willingness of the preferred trading partner to advise the farmer of supply problems. Farmers preferred to transact with cooperative trading partners who refrained from using coercive power to achieve their own objectives. Once trust had been established, farmers perceived that transacting with preferred trading partners was significantly less risky. Preferred trading partners were perceived to have a good reputation, to make the best offer, to treat the farmers fairly and equitably and to offer the best service. The farmers' desire to transact with local traders and those traders with whom they had developed a close personal friendship were considered to be not only antecedent to trust but also to reinforce trust in the relationship.