Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship.Long term relationships, Relationship Quality, Dairy Industry, Malaysia

Exploring the multi-dimensional nature of price satisfaction in business to business suppliers' relationship performance

Price satisfaction is an important factor which influences buyer seller relationships. The literature on industrial buyer seller relationships has provided only limited discussion of the concept of price satisfaction especially from the supplier's perspective. The aim of this paper is to provide a detailed analysis of the concept of price satisfaction from a supplier's point of view. We argue that like in consumer markets, industrial suppliers' satisfaction related to price is a higher order construct with many dimensions and that price satisfaction influences the industrial suppliers' relationship performance

Farmer Acceptance of Genetically Modified seeds in Germany: Results of a Cluster Analysis

Biotechnology, cluster analysis, German farmers, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Security and Poverty, Q2,

Building producer loyalty in Malaysia's fresh milk supply chain

The paper presents results from a survey of 133 dairy producers in Malaysia, and identifies how Malaysian milk buyers can build a loyal customer base with their suppliers as a means to secure uninterrupted milk supplies. A structural equation model was conducted to test the conceptual model using AMOS 17.0 software. The results show that whereas timely and collaborative communication, price satisfaction and cultural fit influence positively suppliers’ contractual and competence trust in their buyers, power dependency negatively influences competence trust. Furthermore, suppliers’ trust in their buyers will eventually lead to loyalty. The principal implication is that milk processors and other buyers need to engage in collaborative communication with the dairy farmers to ensure continuous and uninterrupted supply.dairy, Malaysia, customer base, competence trust, suppliers trust, collaborative communication, Agribusiness, Agricultural and Food Policy, Farm Management, Industrial Organization, Institutional and Behavioral Economics, Marketing, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Teaching/Communication/Extension/Profession,

Enhancing long-term grape grower/winery relationships in the Australian wine industry

Purpose – There are many factors which may influence the ability of wineries to build and maintain long-term relationships (LTR) with their suppliers of grapes. The aim of this paper is to identify the most important factors which enhance LTR between Australian wineries and grape growers. Design/methodology/approach – A qualitative in-depth interview technique was employed with 13 Australian grape growers. Findings – The relational dimensions of communication, goal compatibility and use of power were found to influence the relationship quality dimensions of trust and satisfaction, which are also linked to the level of commitment and hence long-term relationship. Practical implications – The Australian wine industry is currently suffering economic instability which has resulted in the demise of some relationships between grape growers and winemakers. However, economic misfortunes will no doubt change and inefficiencies will result if LTR are not maintained. These inefficiencies could prove detrimental as the Australian wine industry strives to produce regionally branded and higher quality wine products which are both grape grower derived element. Furthermore, issues related to communication frequency and reduction in trust have implications for communication strategies which may result in the reduction of winery grower liaison staff. Originality/value – This paper offers a grape/grower-winery perspective on buyer-seller relationships. It moderates the theory on communication and its effect on trust and commitment. Furthermore it posits the issue of buyer size on relational dimension and outcomes, which has had little attention in the literature

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship

Relationship quality as the predictor of long term relationship in the Malaysian dairy industry

Dairy market in Malaysia has been increasing due to high income and population growth in the region. In response to the increasing demand, milk processors need to obtain constant milk supplies from the dairy farmers. One way of doing this is when the buyers and the sellers build and maintain quality relationships in order to enhance long term sustainability of the milk supply. This paper examines the determinants of relationship quality and its role in enhancing long term relationship between the Malaysian milk processors and dairy farmers. The study revealed that where as mutuality and price satisfaction influence the perceived relationship quality of the farmers positively; dependency and price flexibility do not. Furthermore, the perceived relationship quality of the farmers has a positive influence on long term orientation of the relationship

The impact of price satisfaction on supplier commitment in the Australian wine supply chain

Commitment is an important relational dimension of any business to business relationship. While many studies have investigated the antecedents and effects of commitment on business to business relationships, the impact of price satisfaction on suppliers' commitment has not been investigated. As a result, the aim of this study was to investigate the effect that price satisfaction has on suppliers' commitment in a business to business relationship utilising the Australian wine industry as a context. The results of the study show that price reliability and relative prices have a strong affect on suppliers' commitment and these aspects of price satisfaction should be heeded by buyers of business to business goods and services

Exploring the nature of price satisfaction in the Australian wine supply chain

In recent years, there has been an increasing realisation of the need for Australian Wineries to develop and maintain quality relationships with their suppliers of grapes. This is especially against the background of the realisation that quality relationships can reduce the level of transaction cost and improve efficiency in the supply chain. One important factor which has been considered as having the potential to enhance and sustain high quality business relationships is the price satisfaction, which measures the perception of the price levels that is paid to the farmers. The aim of this contribution is to explore the main dimensions of price satisfaction between the Australian grape growers and wineries, and determines its impact on overall price satisfaction. Based on the results of the online interview with 396 Australian grape growers, we identify price transparency, relative price satisfaction, price quality ratio and price reliability as the main factors which influence grape growers satisfaction with the price. We conclude that wineries need to focus on the psychological aspect of the price such as price information, stable prices as well as the process of price determination in order to enhance the perception of price fairness from the grape growers