Findings on the relationship issues and link to firm performance
| Question | Firm code | Excerpts of data on trust |
| What is the role of trust in SC? | Firm 2 | Trust is finish. We don’t believe in trust; we need a contract with our partners to ensure the price (Vegetables producer) |
| Firm 5 | I think trust is about 50 per cent of the right issue because when it comes to a dollar, things get tight, trust gets out of the door, and in reality, it can’t hit the relationship when all the parties share the risk (Processor) | |
| Firm 6 | It would not come in handy to have a contract in place, obviously have we ongoing trusted relationship with our growers (Processor) | |
| Firm 8 | The majority of the stuff are written in trading terms. All the legal stuff are written, all the stuff relating to money. But then, apparently, you are dealing with these people week to week, their plan and promotions and like that, you don’t write everything (Supermarket retailer) | |
| What do you think about the symmetry in a transaction? | Firm code | Excerpts of data on symmetry in the relationships |
| Firm 1 | For a successful relationship, the producer and processor have to share in the fluctuation of market […] the risk should be shared, so should the price. If I am the processor and offered you a price, but if the auction market exceeds that price I will pay you half the difference. If it drops, you pay me half my difference. That’s reasonable, common with the approach of some larger companies (Producer) | |
| Firm 2 | Don’t expect the farmers to continually the price takers; they have to share the risk between the two (Producer) | |
| Firm 5 | The relationship should emphasise getting highs and lows equally in the marketplace. It means the farmers or producers, the processors and the feed mills if they all share the risk of supplying the product that will surely impact on a sustainable performance (Processor) | |
| Firm 8 | There is a lot of cost on this side of business what the supplier can’t cover sometimes, and for them, if they don’t have long-term dealings and benefits with someone fairly stable […] they may have difficulty (Supermarket Retailer) |
| Question | Firm code | Excerpts of data on trust |
| What is the role of trust in SC? | Firm 2 | Trust is finish. We don’t believe in trust; we need a contract with our partners to ensure the price (Vegetables producer) |
| Firm 5 | I think trust is about 50 per cent of the right issue because when it comes to a dollar, things get tight, trust gets out of the door, and in reality, it can’t hit the relationship when all the parties share the risk (Processor) | |
| Firm 6 | It would not come in handy to have a contract in place, obviously have we ongoing trusted relationship with our growers (Processor) | |
| Firm 8 | The majority of the stuff are written in trading terms. All the legal stuff are written, all the stuff relating to money. But then, apparently, you are dealing with these people week to week, their plan and promotions and like that, you don’t write everything (Supermarket retailer) | |
| What do you think about the symmetry in a transaction? | Firm code | Excerpts of data on symmetry in the relationships |
| Firm 1 | For a successful relationship, the producer and processor have to share in the fluctuation of market […] the risk should be shared, so should the price. If I am the processor and offered you a price, but if the auction market exceeds that price I will pay you half the difference. If it drops, you pay me half my difference. That’s reasonable, common with the approach of some larger companies (Producer) | |
| Firm 2 | Don’t expect the farmers to continually the price takers; they have to share the risk between the two (Producer) | |
| Firm 5 | The relationship should emphasise getting highs and lows equally in the marketplace. It means the farmers or producers, the processors and the feed mills if they all share the risk of supplying the product that will surely impact on a sustainable performance (Processor) | |
| Firm 8 | There is a lot of cost on this side of business what the supplier can’t cover sometimes, and for them, if they don’t have long-term dealings and benefits with someone fairly stable […] they may have difficulty (Supermarket Retailer) |
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