The Effects of Trust in the Development of Business Linkages and Relationships Between Sunflower Growers and Buyers: A Case 0f Small Scale Growers in Singida Region, Tanzania

Abstract

Edible oilseeds, with their related industrial value chains of activities, represent growing components of the agricultural economy in Tanzania. Through its initiative of Kilimo kwanza (agriculture first) policy, among other things, the government of Tanzania intends to improve its agricultural sector by building strong domestic economic capacities of production and processing of agricultural produce for both the domestic and export markets. This paper provides a framework for analyzing the role of trust in the development of business linkages and relationships between sunflower growers and buyer firms in Singida region, Tanzania. The paper discusses key concepts of trust in light of value chains governance theory. Various studies have concluded that the essence of trust is to improve business performance of the participating parties. Trust is viewed as a lubricant or enabler of cooperation. It creates stability between business partners, facilitates cementation of their relationships and guarantees continuity in business relationships.