Analysing Relationship Dynamics in Cashew Supply Chains

Abstract

Long term relationship is very crucial for efficiency and sustainability of supply chains. However, early research in agricultural marketing focused mainly on the economics of channels and ignored the structure of social relationship within the chain members. This research study aims at studying the relationship dynamics in supply chain of cashew nut in Garo hills of Meghalaya (India) from small holder’s perspective. This study was based on response of small holder cashew growers towards their most important partner (in terms of maximum quantity of transactions) in the study area which happens to be pre-harvest contractors. On the basis of responses from 193 small holder cashew nut growers, about 23 pre harvest contractors dealing in cashew nut marketing in Garo hills of Meghalaya (India), the study finds that good and socially acceptable relationships dynamics among the chain members play an important role in their satisfaction from the chain. Positive variables (socially acceptable) affect the satisfaction of small holders in a positive way and negative variables (socially non acceptable) affects the satisfaction of small holders in a negative way. The opportunistic behaviour and lack of trust leads to dissatisfaction and poor relationship dynamics. The study emphasizes that middlemen of these chains should realize the above dynamics and for long term sustainability of these supply chains ( and mutual benefit of members) should play the role of channel manager.

Keywords: Supply Chain Management, Relationship Dynamics, Factor Analysis, Factor Scores, Farmers, Cashew Nut

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