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Table 2 Research hypotheses investigating the effects of product features 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
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