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    Modelling buyer-seller relationships in agribusiness in South East Asia

    169648_43232_07897.pdf (280.2Kb)
    Access Status
    Open access
    Authors
    Batt, Peter
    Date
    2000
    Type
    Conference Paper
    
    Metadata
    Show full item record
    Citation
    Batt, Peter. 2000. Modelling buyer-seller relationships in agribusiness in South East Asia, in Ford, D. and Naude, P. and Ritter, T. and Turnbull, P.W. and Leek, S. (ed), 16th Annual IMP Conference, Sep 1 2000, pp. 1-28. Bath, United Kingdom: University of Bath.
    Source Conference
    16th Annual IMP Conference
    School
    Department of Agribusiness
    URI
    http://hdl.handle.net/20.500.11937/8110
    Collection
    • Curtin Research Publications
    Abstract

    A model of buyer-seller relationships is developed to examine the nature of the long-term relationships between Filipino potato farmers and their seed suppliers. Relational satisfaction is derived from the seed supplier's offer quality (seed quality, delivery intent and competitive price), relationship specific investments (adaptions, communication, education and training and reciprocal buying) and a reduction in uncertainty in the seed supply market. However, rather than satisfaction leading to trust, satisfaction has a more direct impact on a potato farmer's desire to maintain a long-term relationship. Nevertheless, in the absence of a formal seed certification system and the nature of the long-term credit arrangements that often exist between farmers and seed suppliers, including reciprocal purchasing arrangements, trust remains a key relationship building variable. Fortuitously, seed suppliers have an opportunity to build trust with potato farmers through making relationship specific investments.

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