Does Traditional Guanxi Matter for Smallholders in Modern Markets? A Structural Equation Modeling

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Abstract

The aim of this study is to investigate the role smallholders¿ personal relationships on their market behavior in China. A survey with 167 vegetable farmers showed that guanxi networks have significant effects on interpersonal trust and transaction specific investments for smallholders. Guanxi networks also help smallholders to get access to modern high-value market outlets (such as supermarkets and international markets) and encourage relationshipbased transactions. Furthermore, smallholders¿ high-value market participation will be further enhanced by trust buyer-seller relationships. Integrated buyer-seller relationships increase the contracts application in vegetables business in China.
Original languageEnglish
Pages1-18
Publication statusPublished - 2007
Event17th Annual World Food and Agribusiness Symposium, Parma, Italy -
Duration: 23 Jun 200724 Jun 2007

Conference

Conference17th Annual World Food and Agribusiness Symposium, Parma, Italy
Period23/06/0724/06/07

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