HP code | Exogenous variable | Â | 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 |