The effect of relationship quality on contract farming: The mediating role of conflict between trading partners in Albania

Abstract

The aim of this research paper is to explore the role of conflict between trading partners in terms of relationship quality (satisfaction, commitment, and trust) on contract farming. Even though there is research on the above issues, yet there is lack of research on the role of conflict between partners in terms of relationship quality on contract farming. Thus, there is a need to offer evidence that brings more clarity to such a role of conflict between trading partners. To test the hypothesized relationships, primary data are collected in different agribusiness areas in Albania. Altogether, 640 successful questionnaires are filled in. The relationships are tested using the partial least squares of structured equation modelling (PSL-SEM) method. The key finding is that a conflict between trading partners influences contract farming and mediates the effects of the farmer’s satisfaction and trust in the relationship with their buyer on contract farming. This paper enriches the existing literature, since it provides additional insights from a developing country context. © 2021, Centre of Sociological Research. All rights reserved.