Relationship Quality in Fish Value Chains: Buyer–Supplier Management in the Pangasius Industry, Vietnam

Abstract

This study deals with the importance of investment and trust in designing a high-quality, export-oriented fish value chain. It analyzes relationship quality in the Pangasius industry in order to improve product quality through closer supply-chain coordination. According to findings from several research streams, we argue that relationship quality must be conceptualized as a function of trust and investment. Consequently, we derived a conceptual model that links commitment and trust to relationship quality. The analysis brings together assumptions and concepts from a variety of sources ranging from Porter’s value chain to transaction-cost economics to institutional economics. To verify the applicability of the model, we conducted a survey in the Pangasius industry of Vietnam. The data were obtained from a sample of 120 Pangasius farmers and 5 Pangasius processing/export firms in the Mekong River Delta (MRD), Vietnam. Each interview made was taped and properly transcribed. We collected relevant information by interviewing the managers of four processing/export firms. In addition, we consulted secondary data by making use of documentary information, archival records from relevant organizations, and secondary sources. Hence, using different sources of evidence, we were able to triangulate our findings on the main issues under study.