Influence of Communication Openness, Information Exchange, and Intra-organisational Ties on Farmer–Buyer Relationship Continuity: Evidence from Indonesian Vegetables Supply Chains

This study investigates the direct and indirect effect of open communication, information exchange, and intra-organisational ties on the quality (trust, satisfaction) and continuity (commitment, dependence) of the vertical relationship between farmers and their buyers. Data were collected through interviews with two groups of vegetables producers—members of a producer organisation (PO) and independent producers—in Central Java and Yogyakarta provinces of Indonesia. The results demonstrate that open communication and information exchange improve relationship quality, while intra-organisational ties (only relevant for PO members) improve both relationship quality and relationship continuity. Moreover, open communication, information exchange, and intra-organisational ties indirectly influence relationship continuity through relationship quality. The paper adds to the literature by distinguishing between relationship quality and relationship continuity in the value chain and by investigating the impact of intra-organisational ties in a PO on the vertical buyer–farmer relationship.