Tag: uncertainty

Determinants of long-term business relationships in the dairy value chain in transition countries: the case of Albania

Building on transaction cost economics theoretical framework, we examined the determinants of long-term business relationships between farmers and buyers in the Albanian dairy chain in a context characterised by weak institutions and lack of formal contract. Logistic regression analysis was employed to test the model on primary data collected from a sample of 315 Albanian farmers engaged in the production of sheep and goat milk. The study results support our hypotheses that trust, uncertainty and investment in specific assets are key determinants of long-term relationships. Implications at managerial and policy-making levels are discussed. At a managerial level, dairy owners and managers need to build trust with farmers and mitigate uncertainties as a precondition for long-term relationships. At the policy level, the government subsidy schemes need to be further refined in order to motivate farmers to increase flock size and strengthen vertical relationships in the dairy value chain, the latter being a precondition also to achieve traceability and improve standards.

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  • Scopus SJR (2023): 0.29
  • Scopus CiteScore (2022): 2.0
  • WoS Journal Impact Factor (2023): 0.9
  • WoS Journal Citation Indicator (2023): 0.33
  • ISSN (electronic): 2063-0476
  • ISSN-L 1418-2106



Publisher Name: Institute of Agricultural Economics Nonprofit Kft. (AKI)

Publisher Headquarters: Zsil utca 3-5, 1093-Budapest, Hungary

Name of Responsible Person for Publishing:        Dr. Pal Goda

Name of Responsible Person for Editing:             Dr. Attila Jambor

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

The publication cost of the journal is supported by the Hungarian Academy of Sciences.

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