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Original Research

THE EFFECT OF HANDLED RISK, DOMAIN EXPERTISE AND BUYER-SELLER SIMILARITIES ON DYADIC RELATIONSHIP QUALITY IN INDONESIA COFFEE MARKET

BENNY PRAKARSA 1, SATRIA BANGSAWAN 2, and MAHRINASARI MS 3.

Vol 18, No 09 ( 2023 )   |  DOI: 10.5281/zenodo.8424859   |   Author Affiliation: Doctoral Program of Economics, Faculty of Economics and Business, The University of Lampung, Indonesia 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 1307-1325   |   Published on: 30-09-2023

Abstract

A previous study examined the effects of interpersonal variables, i.e. handled risk, domain expertise and buyer-seller similarities on quality relationships based on buyer perceptions. This study aims to examine the interpersonal factors of two parties, i.e. coffee buyers and sellers (dyadic) that involved in the relationship quality in Indonesia coffee market. The goal is to determine which factors have the greatest influence on quality and which have the least with a complete test result from both sides with a dyadic methodology. To address the research objectives, usable sample data were collected from 507 respondents drawn from 138 samples of coffee roasters, 112 samples of Indonesian coffee exporters, and 257 samples of coffee collectors on the buyer side. Non-probability sampling was performed using the Stratified Sampling Technique by Structural Equation Modelling Analysis, with the SEM-LISREL 8.80 tool. The findings show that handled-risk and domain expertise as interpersonal variables have the greatest influence on the quality of coffee buyers and sellers' relationships, whereas buyer-seller similarities have no positive effect due to national phylosophy, unity in diversity. The managerial and theoretical contributions will be discussed in greater depth.


Keywords

Interpersonal Factors.