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

Bonaventure Boniface, Amos Gyau and Randy Stringer

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Long term relationships; Relationship Quality; Dairy Industry; Malaysia (search for similar items in EconPapers)
JEL-codes: L14 (search for similar items in EconPapers)
Date: 2009-12-17
New Economics Papers: this item is included in nep-agr and nep-sea
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Published in Proceedings The 4th International Conference of the Asian Academy of Applied Business (AAAB 2009) (2009): pp. 766-776

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24420

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