FACTORS DETERMINING THE TRUST OF VEGETABLE FARMERS FOR INTERMEDIARIES IN EASTERN ETHIOPIA

Murad Ali, Jema Haji, Belaineh Legesse and Tinsae Demisse

Review of Agricultural and Applied Economics (RAAE), 2021, vol. 24, issue 01

Abstract: Research background: There is higher level of mistrust between vegetable farmers and intermediaries in vegetable market transaction in Eastern Ethiopia. This mistrust adversely affected farmers’ livelihood which largely depended on the agriculture sector. Hence understanding factors that affect trust of farmers for intermediaries is essential. Purpose of the article: The purpose of this study is to analyse the factors determining vegetable farmers trust for intermediaries using cross sectional data collected from vegetable farmers in Eastern Ethiopia. Methods: Multistage sampling was used to select 385 households for the study. The collected data were analysed using partial least square path modelling procedure. Findings and value added: The empirical results indicated that relational investment, collaborative communication, and flexibility positively influenced trust. Moreover, collaborative communication and flexibility also positively influenced relational satisfaction. However, relational investment negatively affected opportunism. Recommendation: Intermediaries should use effective communication to improve farmers trust and relational satisfaction. They should also engage in relational investment by giving assistance and advice as this could contribute to enhancement of trust and reduction of opportunism. Intermediaries need to also attract farmers by offering satisfactory price and demonstrating flexibility where it is necessary.

Keywords: Institutional and Behavioral Economics; Marketing (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:roaaec:310315

DOI: 10.22004/ag.econ.310315

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