Vol - 16, Issue - 5
About the Journal
Download [This article belongs to Volume - 16, Issue - 5]
Journal of the Austrian Society of Agricultural Economics (JASAE)
Journal ID : JASAE-01-07-2020-30
Total View : 375

Title : Factors Affecting Sustainability of Business Relationships in Ethiopia Banana Value Chain
by Zinashbizu Lemma, Kanchana Sripruetkiat, Isriya Bunyasiri,
Abstract : Among other fruits crops in Ethiopia, banana is the most commonly grown and most widely consumed fruit crop, and has a paramount contribution to the livelihood developments of all value chain actors. However, the country’s banana market is not technically as well as economically efficient. Also, the value chain actors’ vertical coordination or integration is very weak. Chain integration requires the value chain actors to establish and maintain close and sustainable business relationships with their partners. Thus, this paper developed a structural equation model to determine factors that affect the sustainability of business relationships in Ethiopia banana value. Business relationship sustainability conceptualized as a higher-order latent construct measured by relationship stability and quality. Compared to the other two chain stages, the sustainability of business relationships at the farmers-to-cooperative stage and retailers-to-wholesaler stage is good. The findings show that equal power distribution, personal bonds, and the departure of key people significantly determine the business relationship sustainability along the value chain. For the farmers-local collectors and retailers-wholesalers stages, equal power distribution is the main determinant of business relationship sustainability, while for the farmers-cooperative stage competition, and at the local collectors-wholesalers level, a personal bond is the most important determinant.

Our Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates