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Table 3 Research hypotheses investigating the effects of producer-processor relationship characteristics 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

H3.1

Governance

→

(+)

Milk price

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

H3.2.1

Firm size

→

(+)

Governance

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

H3.2.2

Firm size

→

(+)

Milk price

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

H3.3.1

Trust

→

(−)

Governance

Breeders that trust their commercial partners are more likely to adopt less formal types of governance in their relation with processors

H3.3.2

Trust

→

(+)

Milk price

Breeders that trust their commercial partners are more likely to obtain higher prices for their milk

H3.3.3

Trust

→

(+)

Firm size

Breeders that trust their commercial partners are more likely to run larger farms

H2.4.1

Uncertainty

→

(+)

Governance

The higher the uncertainty perceived by farmers, the more they are likely to adopt more formal types of governance in their relationships with processors

H2.4.2

Uncertainty

→

(−)

Milk price

The higher the uncertainty perceived by farmers, the more they are likely to obtain lower milk prices

H2.4.3

Uncertainty

→

(−)

Firm size

The higher the uncertainty perceived by farmers, the more they are likely to run smaller farms

H2.5.1

Investment

→

(+)

Governance

Breeders who made investments to meet the needs of their commercial partners are more likely to adopt more formal types of governance in their relation with processors

H2.5.2

Investment

→

(+)

Milk price

Breeders who made investments to meet the needs of their commercial partners are more likely to obtain higher prices

H2.5.3

Investment

→

(+)

Firm size

Breeders who made investments to meet the needs of their commercial partners are more likely to run larger farms