Producer relationships segmentation in Malaysia's milk supply chains

Abstract

Purpose

Research on buyer‐seller relationships in the agricultural sector receives little attention. A growing body of evidence suggests that strengthening buyer‐seller relationships fosters more efficient supply chains. Much of the long‐term relationship literature tends to treat suppliers as a homogeneous group when identifying motivations, strategies and incentives to enhance the quality of buyer‐seller relationships. This article aims to explore the role of long‐term relationships between buyers and sellers in Malaysia's dairy industry, taking into consideration the heterogeneous nature of producers.

Design/methodology/approach

The study examines variation in relationship quality (trust, satisfaction, and commitment), loyalty and price satisfaction dimensions, using data from a survey of 133 dairy producers.

Findings

Cluster analysis suggests two well‐defined groups differing in terms of demographic characteristics and relationship perceptions about their buyers.

Practical implications

The study results highlight ways milk buyers can develop and promote more appropriate and efficient marketing strategies with milk producers.

Originality/value

This study provides evidence of producer relationship segmentation in an agricultural industry of an emerging economy.

Citation

Boniface, B. (2012), "Producer relationships segmentation in Malaysia's milk supply chains", British Food Journal, Vol. 114 No. 10, pp. 1501-1516. https://doi.org/10.1108/00070701211263046