THE EFFECT OF RELATIONSHIP QUALITY ON CONTRACT FARMING: THE MEDIATING ROLE OF CONFLICT BETWEEN TRADING PARTNERS IN ALBANIA

The aim of this research paper is to explorethe role of conflict between trading partners in termsof relationship quality (satisfaction, commitment, andtrust) on contract farming. Even though there isresearch on the above issues, yet there is lack ofresearch on the role of conflict between partners interms of relationship quality on contract farming. Thus,there is a need to offer evidence that brings more clarityto such a role of conflict between trading partners. Totest the hypothesized relationships, primary data arecollected in different agribusiness areas in Albania.Altogether, 640 successful questionnaires are filled in.The relationships are tested using the partial leastsquares of structured equation modelling (PSL-SEM)method. The key finding is that a conflict betweentrading partners influences contract farming andmediates the effects of the farmer’s satisfaction andtrust in the relationship with their buyer on contractfarming. This paper enriches the existing literature,since it provides additional insights from a developingcountry context.