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

Author

Listed:
  • Boniface, Bonaventure
  • Gyau, Amos
  • Stringer, Randy

Abstract

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.

Suggested Citation

  • Boniface, Bonaventure & Gyau, Amos & Stringer, Randy, 2009. "Relationship quality as the predictor of long term relationship in the Malaysian dairy industry," MPRA Paper 24420, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24420
    as

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    File URL: https://mpra.ub.uni-muenchen.de/24420/1/MPRA_paper_24420.pdf
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    References listed on IDEAS

    as
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    5. Kennya B. Siqueira & Carlos Arthur B. da Silva & Danilo R.D. Aguiar, 2008. "Viability of introducing milk futures contracts in Brazil: a multiple criteria decision analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 491-509.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Long term relationships; Relationship Quality; Dairy Industry; Malaysia;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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