Contractual relationships between smallholder sugarcane growers and millers in the sugar industry supply chain in Swaziland

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dc.contributor.author Masuku, Micah Bheki
dc.contributor.author Kirsten, Johann F.
dc.contributor.author Van Rooyen, C.J. (Cornelius Johannes)
dc.contributor.author Perret, S. (Sylvain)
dc.date.accessioned 2007-04-24T05:36:46Z
dc.date.available 2007-04-24T05:36:46Z
dc.date.issued 2003-09
dc.description For more information on the Agricultural Economics Association of South Africa or subscription to Agrekon, visit http://www.aeasa.org.za en
dc.description.abstract This paper proposes and analyses a model of relationships between smallholder sugarcane growers and millers in the Swaziland sugar industry supply chain. In particular, it identifies the behavioural factors that contribute to the level of satisfaction that sugarcane growers perceive in their relationship with the millers. Using recursive models and multiple regression analysis, the results indicate that higher levels of trust lead to higher levels of cooperation that, in turn, lead to higher levels of commitment by the smallholder growers to the business relationship. Cooperation is also an antecedent of the benefits and of the satisfaction that these growers gained from the relationship. These results agree with a priori theory that trust, cooperation, strategic benefits, commitment and absence of opportunistic behaviour are essential elements for a successful relational exchange. The findings imply that both cane growers and millers need to focus on initiating, signalling and disclosing their behaviours in an effort to improve their relationship with each other. A relationship founded on trust and mutual respect is more likely to succeed than a relationship of convenience supported by legal contingencies. Therefore, relationships characterised by trust and physical and psychological commitment as well as cooperation between exchange parties is more important for mutual benefit and good quality relationship. en
dc.description.uri http://www.aeasa.org.za en
dc.format.extent 334660 bytes
dc.format.mimetype application/pdf
dc.identifier.citation Masuku, M.B., Kirsten, J.F., Van Rooyen, C.J. & Perret, S. (2003). Contractual relationships between smallholder sugarcane growers and millers in the sugar industry supply chain in Swaziland. Agrekon, 42(3), 183-199. [http://www.aeasa.org.za] en
dc.identifier.issn 0303-1853
dc.identifier.uri http://hdl.handle.net/2263/2288
dc.language.iso en en
dc.publisher Agricultural Economics Association of South Africa en
dc.rights AEASA en
dc.subject Sugarcane en
dc.subject Smallhold growers en
dc.subject Millers en
dc.subject Swaziland en
dc.subject Business relationship en
dc.title Contractual relationships between smallholder sugarcane growers and millers in the sugar industry supply chain in Swaziland en
dc.type Postprint Article en


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