Farmer–trader relationships in the context of developing countries: a dyadic analysis to understand variations in trust perceptions

Abstract

PurposeThe purpose of this study is to analyze trust perceptions between farmers and traders from a dyadic context in developing countries using mixed-method with a specific focus on fresh and dry commodities under contracted and non-contracted markets.Design/methodology/approachA mixed approach was employed. Cross-sectional data were collected from 202 farmers and 188 traders using questionnaires and an interview guide. The Mann–Whitney test was used to assess differences in trust perception. Differences in the excerpts were assessed through content analysis.FindingsResults show differences in perception of trust between farmers and traders on integrity, benevolence and competence in marketing fresh and dry commodities. No detectable differences in trust perception between contract and non-contract markets were observed.Research limitations/implicationsData are limited to Northern Uganda and were collected on trust perception. Besides, there is a scarcity of formal contracts and difficulty in having a matched dyad which could affect generalization.Originality/valueThis is the first study to analyze differences in trust perceptions using a mixed approach in a dyadic context between fresh and dry chains in different markets typologies in developing countries.

Trust-supply chain performance relationships: unraveling the mediating role of transaction cost attributes in agribusiness SMEs

“…The influence of transaction cost on the relationship between trust and supply chain performance is well established in previous research (Odongo et al, 2016;Owot et al, 2022). Information sharing is viewed as a critical element for strengthening the achievement of common goals when trust is built by coordination and joint planning (Khan et al, 2018;Agarwal, 2019).…”

“…They were drawn from Lango and Acholi sub regions in Northern Uganda within the districts of Oyam, Kole, Gulu, Nwoya, and Omoro. Whereas, the selection of the two crops followed from the group of high-value crops (fresh and dry), contributing to income and livelihood through commercialization (Owot et al, 2022), the selection of the two regions was based on the fact that one of the districts from each of this region was elevated to city status in 2018. The emergence of the two cities has created a new level of aggregate demand for fresh and dry commodities.…”

“…Furthermore, information sharing plays a primary role in outsourcing, providing benefits of collaboration and alliances (Min et al, 2005;Gajdić et al, 2023). Information sharing has been suggested to have a positive influence on supply chain performance in previous studies (Baihaqi and Sohal, 2013;Odongo et al, 2016;Owot et al, 2022). This study hypothesized that:…”

“…Furthermore, individual business partners in agribusiness relationships in developing countries face serious challenges in access to market information. In addition, violation of contractual obligations is rampant due to the weak legal system to address contract bridging (Owot et al, 2022).…”

Inter-firm relations and resource-based performance: a contingent relational view of small-scale farmers in Zambia

“…Moreover, the imperfect business environments under which farmers interact and operate may obscure competitive performance. Contextual factors such as power asymmetry and (dis)trust influence how values are created and appropriated, as well as which resources and alliances contribute to better outcomes (Adetoyinbo et al, 2023;Eckerd et al, 2021;Odongo et al, 2017;Owot et al, 2022Owot et al, , 2023. Such complexities raise a critical concern about how resource-constrained actors can deploy organizational networks to generate and retain rents in uncertain business environments (Dentoni et al, 2020).…”