Table 2 Research hypotheses investigating the effects of product features on relational governance and firm economic performance
HP code | Exogenous variable | Â | Endogenous variable | HP description |
|---|---|---|---|---|
H2.1 | Governance | → (+) | Milk price | More formal types of governance are associated with better economic performance of farms, i.e., higher milk prices |
H2.2.1 | Firm size | → (+) | Governance | Larger firms are more likely to adopt more formal types of governance in their relation with processors |
H2.2.2 | Firm size | → (+) | Milk price | Larger farms are more likely to obtain higher prices for their milk |
H2.3.1 | Quality | → (−) | Governance | Breeders producing milk of higher quality are more likely to adopt less formal types of governance in their relation with processors |
H2.3.2 | Quality | → (+) | Milk price | Breeders producing milk of higher quality are more likely to obtain higher prices |
H2.3.3 | Quality | → (−) | Firm size | Breeders producing milk of higher quality are more likely to run smaller farms |
H2.4.1 | Safety | → (+) | Governance | More frequent milk safety tests are more likely to occur within more formal types of governance in breeder-processor relationships |
H2.4.2 | Safety | → (+) | Milk price | More frequent milk safety tests are more likely to be associated with higher milk prices |
H2.4.3 | Safety | → (+) | Firm size | More frequent milk safety tests are more likely to be performed for larger farms |
H2.5.1 | Local origin | → (−) | Governance | Breeders oriented towards products and processes of local origin are more likely to adopt less formal types of governance in their relation with processors |
H2.5.2 | Local origin | → (+) | Milk price | Breeders oriented towards products and processes of local origin are more likely to obtain higher prices |
H2.5.3 | Local origin | → (−) | Firm size | Breeders oriented towards products and processes of local origin are more likely to run smaller farms |