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Table 1 Research hypotheses investigating the effects of environmental conditions on relational governance and firm economic performance

From: A structural equation modeling analysis of relational governance and economic performance in agri-food supply chains: evidence from the dairy sheep industry in Sardinia (Italy)

HP code

Exogenous

variable

 

Endogenous

variable

HP description

H1.1

Governance

→

(+)

Milk price

More formal types of governance are associated with better economic performance of farms, i.e., higher milk prices

H1.2.1

Firm size

→

(+)

Governance

Larger firms are more likely to adopt more formal types of governance in their relation with processors

H1.2.2

Firm size

→

(+)

Milk price

Larger farms are more likely to obtain higher prices for their milk

H1.3.1

Technology

→

(+)

Governance

Breeders using modern technologies are more likely to adopt more formal types of governance in their relation with processors

H1.3.2

Technology

→

(+)

Milk price

Breeders using modern technologies are more likely to obtain higher prices

H1.3.3

Technology

→

(+)

Firm size

Breeders using modern technologies are more likely to run larger farms

H1.4.1

Association

→

(+)

Governance

Breeders appreciating the support of trade association are more likely to adopt less formal types of governance in their relation with processors

H1.4.2

Association

→

(+)

Milk price

Breeders appreciating the support of trade association are more likely to obtain higher prices

H1.4.3

Association

→

(+)

Firm size

Breeders appreciating the support of trade association are more likely to run larger farms

H1.5.1

Credit

→

(+)

Governance

Breeders appreciating the financial support of banks are more likely to adopt more formal types of governance in their relation with processors

H1.5.2

Credit

→

(+)

Milk price

Breeders appreciating the financial support of banks are more likely to obtain higher prices

H1.5.3

Credit

→

(+)

Firm size

Breeders appreciating the financial support of banks are more likely to run larger farms