2022
DOI: 10.22434/ifamr2021.0143
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Too much power or no power: when does intermediary’s power result into better wine and happier farmers?

Abstract: The study analyzes the trading relationship performance between farmers and intermediaries and the factors shaping it, with a focus on intermediary’s power, based on a structured survey of vineyard farmers in Kosovo. Confirmatory factor analysis is employed to develop measures for the study latent variables, and ordinary least squares regression is used to test the hypothesis. To further validate the results, machine learning (i.e. random forest) is used to model the factors affecting the relationship performa… Show more

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Cited by 4 publications
(2 citation statements)
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“…Furthermore, power and trust mechanisms influence cooperation and coordination between business partners, e.g. the focal firm and network members of the supply chain network (Bachmann, 2001;Belaya and Hanf, 2013, 2012a, 2012bBelaya et al, 2009;Bitsch and Hanf, 2022;Ireland and Webb, 2007;Priesmeyer et al, 2012;Thorelli, 1986;Xhoxhi et al, 2022). Last but not least governance influences cooperation and coordination (Williamson, 1979).…”
Section: Establishing a Framework Of Possible Factors Influencing The...mentioning
confidence: 99%
“…Furthermore, power and trust mechanisms influence cooperation and coordination between business partners, e.g. the focal firm and network members of the supply chain network (Bachmann, 2001;Belaya and Hanf, 2013, 2012a, 2012bBelaya et al, 2009;Bitsch and Hanf, 2022;Ireland and Webb, 2007;Priesmeyer et al, 2012;Thorelli, 1986;Xhoxhi et al, 2022). Last but not least governance influences cooperation and coordination (Williamson, 1979).…”
Section: Establishing a Framework Of Possible Factors Influencing The...mentioning
confidence: 99%
“…While cooperation may enable many benefits, one major driver behind cooperation for small farmers is improving market access and positioning. Xhoxhi et al (2018) and Xhoxhi et al (2022) point out that buyers' engagement in quality control results in better market access or targeting of more attractive markets, which in turn pays off both for the buyer and supplying farmers. Whereas small farmers who do not face buyers' control over quality may be in weaker position to meet market demand, and as such, may feel under higher pressure to cooperate with each-other to overcome such difficulties.…”
Section: Incentive Structuresmentioning
confidence: 99%