BIBLIOGRAPHY
LUCAS, JOVINIA SUBLA. APRIL 2011. Coordination Mechanisms and Attributes Between
Actors in the Spot Market Chains for Cabbage. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)
ABSTRACT

The study was conducted to identify the different chains of cabbage in the spot marketand
to determine the coordination mechanisms and attributes adopted by the different chain actors,
specifically at La Trinidad, Benguet; Urdaneta City, Pangasinan; and Metro Manila.

There were a total of 193 respondents from the different groups of actors in the spot
market chain. Most of the respondents are aged within the range of 21-30 and 31-40 years old
and majority is female. Most of them are married and have attained high school and college
level. Majority of the respondents don’t have organizational affiliation related to vegetable
trading business and most are engaged one to five years in business.
There were several different spot market chains for cabbage.All of the chains started from
the farmers in La Trinidad, Benguet and ended to the different consumers in La Trinidad,
Benguet; Urdaneta City, Pangasinan and Metro, Manila.
In the coordination mechanisms which is operational resource sharing, most of the
respondents do not share investments in their business operation. In strategic resource sharing,
majority sometimes share their strategies to improve their operation and also same in information
sharing. In the sharing of risk and reward in business transactions, most of the respondents
sometimes have equal sharing of risks and rewards. The decision style is decentralized as the
different actors never coordinate decision to be undertaken. The level of control of the

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respondents in business operation is low. Most of the buyers have their own comprehensive
selection procedure of who the sellers they wanted to transact with. However, only few
actors/respondents have this mechanism in choosing the buyers. Most of the respondents
communicate and socialize with their buyers mainly for business.

For better operation, it is recommended to improve more on the risk and reward sharing,
operational resource sharing, information sharing and socialization between the actors in the spot
market chain. In addition, the respondents are recommended to have an organizational affiliation.

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INTRODUCTION
Rationale


Cordillera Administrative Region (CAR) is the country’s top producer of
cabbage. The region contributed 77% to the country’s production of cabbage in the first
three months of 2010. Cabbage produced in the region is 28.86 thousand metric tons. It
surpassed the 2009 production of 27.87 thousand metric tons by 3.57% (BAS, 2010).

The region is one of the main producers of highland vegetables aside from the
mountainous areas and highlands of South Tagalog, Cebu, Negros and Mindanao
(Johnson et al., 2008). Some of the major highland vegetables are potato, cabbage,
chayote and carrot. Major provinces producing these vegetables are Benguet and
Mountain Province. Vegetables being produced in these areas and some part of Ifugao are
being distributed in the different spot markets in the region and even in Manila and other
places outside the region.

Coordination mechanism is defined by Xu and Beamon (2006) as a set of
methods used to manage interdependence between organizations. The distribution and
marketing of products takes several intermediaries between the producer and the
consumer. In the supply chain of highland vegetables, especially cabbage which was the
focus of the study, the main actors are the producers, assemblers, truckers, wholesalers
and retailers. Each of these actors works independently but is interdependent with each
other. These actors interact and coordinate with each other through different mechanisms
to facilitate transactions.

In the Philippines, researches on agricultural commodity supply chains become a
priority agenda for industry development. Thus, studying the coordination mechanisms in
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage. JOVINIA
SUBLA LUCAS/ 2011.

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the spot market of cabbage may contribute in the literatures in the supply chain future
researches especially in the behavioral aspect in the spot market.
Statement of the Problem

The study was conducted to answer the following questions:
1. What are the different chains of cabbage in the spot market?
2. What are the coordination mechanisms and attributes adopted in the different
spot market chains and is there a significant difference among the actors’ response?
Objectives of the Study
The study aimed to:

1. To identify the different chains of cabbage in the spot market.

2. To determine the coordination mechanisms and attributes adopted in the
different spot market chains and to test whether there is a significant difference among
the actors’ response.
Importance of the Study

Identifying and analyzing the coordination mechanisms and attributes employed
by the actors is important for further improvement in the coordination and in the long run,
improvement in the supply chain of cabbage and other highland vegetables as well. The
result of the study then can be a source of information for concerned agencies to explain
the behavioral aspect in the spot market especially in coordination.
Scope and Delimitation of the Study
The study was focused on the coordination mechanisms and attributes such as
resource sharing structure, decision style, and level of control and risk/reward sharing in
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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the spot market. The respondents were interviewed at the major trading areas of cabbage
such as La Trinidad Trading Post, Metro Manila and Pangasinan.






















Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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REVIEW OF LITERATURE
Supply Chain and Networks

Folkerts and Koehorst (1998) defined supply chain as “a set of interdependent
companies that work closely together to manage the flow of goods and services along the
value-added chain of agricultural and food products, in order to realize superior customer
value at the lowest possible cost”.According to Lambert and Cooper (2000), there are
four main characteristics of a supply chain: First, it goes through several stages of
increasing intra- and inter- organizational, vertical coordination. Second, it includes many
independent firms, suggesting that managerial relationship is essential. Third, a supply
chain includes a bi-directional flow of products and information and the managerial and
operational activities. Fourth, chain members aim to fulfill the goals to provide high
customer value with an optimal use of resources.

Supply chain management means the process of planning, implementing and
controlling the efficient, cost effective flow and storage of raw materials, in-process
inventory, finished goods and related information from the point-of-origin to point of
final consumption for the purpose of conforming to customer requirements (Council of
Logistics Management, 1986).Supply chain is a dual flow of products and information. It
is the drive to meet the central needs of the consumer and it stresses the importance of the
relationships between participants in the marketing system. However, the tendency is
often focus solely on the immediate economic aspects when firms are building supply
chains (Champion and Fearne, 2001). Hongze Ma (2005) pointed out that supply chain is
a network of organizations from suppliers with the purpose to improve the flow of
material and information. Drabenstott (1999) discussed the increasing move toward the
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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development of supply chains and described supply chain structures where all stages of
production, processing and distribution are bound together tightly to ensure reliable,
efficient delivery of high quality products.
Interdependencies and Coordination


Crowston (2008) stated that interdependency and coordination have been
perennial topics in organization studies. The two are related because coordination is seen
as a response to problems cause by dependencies. Past studies however, described
dependencies and coordination mechanisms only in general terms without characterizing
in detail differences between dependencies, the problems of dependencies create or how
the proposed coordination mechanisms address those problems. This vagueness made it
difficult or impossible to determine what alternative coordination mechanisms might be
useful in a given circumstance or to directly translate these alternative designs into
specifications of individual activities.

Researchers have typically conceptualized dependencies as arising between actors
rather than between tasks the actors happen to be performing. The cause of a dependency
is variously viewed as control by one actor over outcomes of actions of another or due to
exchanges of resources(Crowston, 2008). Litwak and Hylton (1962), defined
interdependency as when two or more organizations must take each other into account if
they are to accomplish their goals, Victor and Blackburn (1987) made this view of
interdependency more precise by casting it in a game-theoretic framework. Each actor
has a set of actions it could take and each actor’s payoff depends on the combined choice
of actions, thus the payoffs an actor gets may depend on the other actor’s choice ofaction.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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Dependency is defined by “extent to which a unit’s outcomes are controlled directly by or
are contingent upon the actions of another.

In a supply chain, there are many firms working together where each firm are
dependent from the performance of the other. Apparently, there is dependency and
coordination between the firms in a chain. Coordination could be a planned or tactical
action from the dependency issues that may arise in a supply chain.
Coordination Mechanisms

Coordination within a supply chain is a strategic response to the challenges that
arise from dependencies. A coordination mechanism is a set of methods used to manage
interdependence between organizations(Malone and Crowston, 1994). By definition,
there are actors, entities and processes that interact to execute supply chain objectives.
Coordination mechanisms then, provide tools for effectively managing these interactions.
Thompson (1967) identified different coordination mechanisms that are used to respond
to different levels of interdependencies between organizations, and categorizes these
interdependencies as pooled, sequential, or reciprocal. Corresponding to each kind of
interdependence,
Thompson
(1967)
identified
three
coordination
mechanisms:standardization, plan, and mutual adjustment. Van de Ven et al (1976)
extended the Thompson framework by adding a fourth type of interdependency: team
arrangement, in which partners work jointly and simultaneously. In their research,
authors identified three kinds of coordination mechanisms: (1) impersonal(plans and
rules), (2) personal(vertical supervision),and (3)group(formal and informal meetings) and
observe that as the level of interdependence increases (from pooled to team arrangement),
so too does the need for group coordination.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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For each type of dependency, there are many coordination mechanisms available.
Coordination theory does not generally provide guidance for selecting coordination
mechanisms, nor does it consider the operating environment of the organization (Xu,
2006).
Coordination Mechanisms Attributes

McCann and Galbrath (1981) analyzed coordination strategies on the bases of
three dimensions: 1. formality (from informal personal meetings to more formal
arrangement); 2. level of control; and 3. decision localization (centralized or
decentralized). According to the authors, an increase in dependency will cause an
increase in formality, level of control, and centrality. Malone (1987) pointed out that
there are two attributes associated with different coordination structures: 1. information
structure(how members share, perceive, and communicate information) and2. decision
function(how members decide what actions to take). Within the decision function, there
are two classes: centralized and decentralized. The centralized decision, one firm has
primary control and decentralized style, each firm makes its decisions autonomously.
Another important dimension to consider in supply chain coordination, where risks and
benefitsdefine the need for coordination, is how to allocate the benefits arising from
coordination and which parties absorb the risks.Each organization seeks to implement
coordination mechanisms that increase benefits and reduce risk. A framework utilizing
four attributes was used to differentiate the various coordination mechanisms: resource
sharing structure; decision style; level of control and; risk/reward sharing (Xu and
Beamon, 2006).
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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Resource sharing structure.Malone (1987)limited consideration to information
sharing. Since there are other resources to be shared and communicated within the
context of coordination, the information sharingis extended to include all other resources
shared.This dimension is defined as resource sharing structure, and follows the
classification given by Varamaki and Vesalainen (2003) as: (1) no resource sharing; (2)
operational resource sharing, such as communications between operational levels, sharing
operational information such as point-of-sale (POS) data, or pooling operational
resources in group problem solving; (3) tactical resource sharing, such as communication
between managers in the same function from different firms, to achieve consistency or
jointly developing inventory and production plans; and (4) strategic resource sharing,
such as forming strategic alliances, forming strategic level meeting, jointly creating
strategic plans, sharing strategic information, or jointly investing resources to make
strategic advances, especially in the area of research and development.

Risk and reward sharing.Risk and reward sharing describes the characteristics of
the selected incentive system. There are two main types of sharing methods: fair and
unfair. A fair condition occurs when one firm undertakes more risk than do other firms in
the relationships, but receives more benefits from coordination. An unfair condition
arises when one firm undertakes less risk but enjoys greater benefits, or when one firm
undertakes greater risks with fewer benefits (Xu and Beamon, 2006).

Decision style. For the decision function, there are two main styles: centralized
and decentralized. The centralized decision style, one firm has primary control and
decentralized style, each firm makes its decisions autonomously (Xu and Beamon, 2006).


Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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Level of control.Control is the process of monitoring activities to ensure they are
being accomplished as planned and to correct any significant deviations (Robbins, 1988).
Control has two levels: high and low. A high level of control corresponds to strict activity
monitoring and control. In this case, the coordinating firms develop detailed and strict
rules, routines, and monitoring systems to control other firm’s behavior, for the purpose
of detecting opportunistic risk. A low level of control corresponds little to no monitoring
and control (Xu and Beamon, 2006).

Communication is “the formal as well as informal sharing of meaningful and
timely information between firms” (Anderson and Narus, 1990). Frequent and timely
communication is important because it assists in resolving conflicts and aligning
perceptions and expectations (Morgan and Hunt, 1994).

Schroder and Mavondo (1995) suggested that current communication mechanisms
within the food system are inadequate to meet the changing needs of buyers of
agricultural commodities. Consequently food processors and distributors are increasingly
bypassing open market systems in favor of more direct linkages with agricultural
producers.








Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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Decision Style

1. Centralized
2. Decentralized


Risk and

Resource Sharing
RewardSharing
1. Fair
Structure

Coordination
2. Unfair
1. No resource sharing
Mechanism

2. Operational resource

Attributes
sharing
Comprehensive
3. Tactical resource
Selection

sharing
Procedure and
4. Strategic resource

Socialization
sharing
1. Deliberate


Level of Control
2. Natural
1. High level

2. Low level


Figure 1. Coordination mechanism attributes
Definition of Terms
Farmer/ Producer- one who produces the commodity
Wholesaler- refers to the middleman who directly sells cabbage to retailers in
wholesale price
Assembler- wholesaler- they are the one who assemble by cleaning further,
sorting grading and packing the product in large quantity
Trucker- in charge of carrying the product to different markets
Retailer- individuals who market cabbage directly to the ultimate consumer
Spot market- also called open market where transaction between the buyer and the
seller is done; place where the product are being delivered or sold


Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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Conceptual Framework

In the supply chain of cabbage, there are several actors such as the farmers,
assembler- wholesalers, trucker- wholesalers, wholesalers, wholesaler- retailers and
retailers. Each of these actors works independently but is interdependent with each other.
To manage the interdependency between these actors, there is several coordination
mechanisms employed. These coordination mechanisms employed was identified through
different attributes such as the resource sharing structure, risk and reward sharing, level
of control, decision style, comprehensive selection procedure and socialization; and the
difference of actors’ response was tested. Furthermore, the different chains in the cabbage
supply chain were identified.

Chain Actors

Coordination
Far mers

MechanismAttributes

Resource Sharing Structure

Assembler-
Wholesalers

ExpectedOutcome
Risk and Reward Sharing


Trucker- Wholesalers

Coordination
Level of Control



Mechanism
Employed

Different Chains
Decision Style
Wholesalers


Comprehensive Selection

Procedure
Wholesaler- Retailers


Socialization
Retailers



Figure 2. Conceptual framework
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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METHODOLOGY
Locale and Time of the Study


The study was conducted at the major trading areas in Benguet, Metro Manila and
Pangasinan. Specifically at La Trinidad Vegetable Trading Post, Balintawak, Novaliches,
Kamuning, Nepa Q, Blumentritt, Basilio and Urdaneta, Pangasinan. The study was
conducted from November, 2010 to January, 2011.
Respondents of the Study


The respondents represented the major actors in the fresh vegetables supply chain.
Specifically, the target respondents were classified into four major groups as shown
below.

Respondent under the production was 46. Under assembly/ collection was 34,
distribution was 58 and retailing was 55. The total respondent was 193.
Table 1. Respondents of the study
CLASSIFICATION
TYPE OF RESPONDENTS
Production
Vegetable farmers
Assembly/ Collection
Assembler- wholesalers; Financier- assembler-

wholesalers
Distribution
Trucker-wholesalers; Wholesalers; Wholesaler-

retailers
Retailing
Retailers







Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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Data Gathering Procedure


A structured interview schedule was used to gather data. The interview schedule
was pre-tested to validate the questionnaire.
Data Gathered

The data gathered were the profile of the actors, the coordination mechanisms and
attributes adopted in the chain by the actors and their buyers.
Data Analysis


The data gathered were organized, summarized and classified according to the
objectives of the study. Descriptive method analysis was used like frequency, tables,
percentage and test-statistics.




Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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RESULTS AND DISCUSSION
Respondents Profile

Table 2 presents the background information of 193 respondents from Benguet,
Manila, and Pangasinan. The respondents were categorized according to age, gender,
marital status and educational background.

Age. Most of the farmers (39%), assembler-wholesalers (32%), and trucker-
wholesalers (42%) have the age bracket of 21-30 years old. Moreover, most of the
assembler-wholesalers (32%), financier-assembler-wholesalers (47%), and wholesaler-
retailers (39%) have age ranging 31-40 years old. This implied that most of the actors
were young to middle ages. Hence, these persons engaged in vegetable business assumed
as their occupation and source of income.

Gender. There were more female than male respondents with the percentage of
67%. However,most farmers were male (91%) and retailers were mostly female (84%).
This simply means that males do the hard work in production as compared to retailing
activities which are done by females.

Marital status.Most of all the respondents were married with a percentage of 69%.
This implies that the respondents work to support the respondents’ families. Married
people work more than unmarried people.
Educational background. Most of the respondents had attained high school (47%)
and college (34%) education and lesser number with the vocational and elementary
education. This means that the level of education is not a requisite to engage in vegetable
trading business.

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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14

Table 2. Distribution of respondents according to socio-demographic status
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING


CHARACTERISTICS
F
A-W
F-A-W
T-W
W
W-R
R
TOTAL
N
%
N
%
N
%
N
%
N
%
N %
N
%
N
%
Age
















20 and less
5
11
2
11
0
0
0
0
4
40
3
8
2
4
16
8
21-30
18
39
6
32
1
7
5
42
3
30
12 33
12
22
57
30
31-40
10
22
6
32
7
47
4
33
1
10
14 39
10
18
52
27
41-50
9
20
4
21
4
27
2
17
1
10
3
8
21
38
44
23
51-60
3
7
1
5
3
20
1
8
1
10
3
8
8
15
20
10
61 and above
1
2
0
0
0
0
0
0
0
0
1
3
2
4
4
2
TOTAL
46
100
19 100 15 100 12 100 10 100
36 100
55
100 193 100
Gender
















Male
42
91
13
68
5
33
8
67
4
40
12 33
9
16
93
48
Female
4
9
6
32 10
67
4
33
6
60
24 67
46
84 100
52
TOTAL
46
100
19 100 15 100 12
100 10
100
36 100
55
100 193 100
Marital status















Single
16
35
2
11
1
7
5
42
6
60
15 42
9
16
54
28
Married
30
65
17
89 13
87
7
58
4
40
20 56
43
78 134
69
Separated
0
0
0
0
1
7
0
0
0
0
0
0
2
4
3
2
Widow
0
0
0
0
0
0
0
0
0
0
1
3
1
2
2
1
TOTAL
46
100
19 100 15 100 12 100 10
100
36 100
55
100 193 100
Educational attainment















Elementary
13
28
1
5
2
13
2
17
1
10
4
11
10
18
33
17
High School
20
43
9
47
6
40
4
33
4
40
16 44
31
56
90
47
College
13
28
9
47
7
47
6
50
5
50
14 39
12
22
66
34
Vocational
0
0
0
0
0
0
0
0
0
0
2
6
2
4
4
2
10
10
19
10
TOTAL
46
100
19 100 15 100 12
10
36 100
55
100
0
0
3
0

















LEGEND:
F
– Farmers



W
– Wholesalers
A-W
– Assembler-wholesalers

W-R
– Wholesaler-retailers
F-A-W – Financier-assembler-wholesalers
R
- Retailers
T-W
– Trucker-wholesalers
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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15

Number of years engaged in vegetable business. Table 3 shows the distribution of
respondents according to the number of years engaged in business. Most of the
respondents (46%) were engaged one to five years in business while the least were in the
business for 31 years and over. Therefore, the result reveals that the chain actors were
still new in vegetable trading business.
Organization affiliation. The distribution of respondents according to organization
affiliation is presented in Table 4. Most of the respondents were not affiliated to any
organization. Thus, may not recognize the relevance to their business activities.

Table 3. Distribution of respondents according to the number of years engaged in
business

PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING



NO. OF YEARS
F
A-W
F-A-W
T-W
W
W-R
R
TOTAL
N
%
N
%
N
%
N
%
N
%
N
%
N
%
N
%

Below 1 Yr.
0
0
1
5
0
0
0
0
1
10
0
0
2
4
4
2
1-5
17
37
9
47
4
27
4
33
6
60 32
89
17
31
89
46
6-10
6
13
5
26
2
13
3
25
3
30
4
11
9
16
32
17
11-15
6
13
3
16
7
47
4
33
0
0
0
0
5
9
25
13
16-20
9
20
0
0
0
0
0
0
0
0
0
0
11
20
20
10
21-25
2
4
1
5
2
13
1
8
0
0
0
0
2
4
8
4
26-30
2
4
0
0
0
0
0
0
0
0
0
0
8
15
10
5
31 and above
4
9
0
0
0
0
0
0
0
0
0
0
1
2
5
3
TOTAL
46
100 19 100 15 100 12 100 10 100 36 100
55
100 193 100


Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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Table 4. Distribution of respondents according to organization affiliation
PRODUCTION
ASSEMBLY
DISTRIBUTION
RETAILING
ORGANIZATIONAL
F
A-W
F-A-W
T-W
W
W-R
R
TOTAL
AFFILIATION
N
%
N
%
N
%
N
%
N
%
N
%
N
%
N
%
Farmer's Assoc.
1
2
0
0
0
0
0
0
2
20
0
0
0
0
3
2
Cooperatives
1
2
2
11
4
27
3
25
1
10
8
22
2
4
21
11
Others
3
7
3
16
3
20
4
33
0
0
3
8
5
9
21
11
None
41
89
14
74
8
53
5
42
7
70 25
69 48
87 148
77
TOTAL
46
100
19 100 15 100
12 100 10 100 36 100 55 100 193 100

Spot Market Chains

Figure 3a shows the flow of cabbage in the spot market. From the farmers at La
Trinidad Vegetable Trading Post (LTVTP), the cabbage is distributed to the different spot
markets in Metro Manila specifically at Balintawak, Nepa Q, Novaliches, Kamuning,
Dapitan, Libertad and other parts outside Cordillera. Several chains were identified as
shown in Figure 3b and these are from 1) farmers at LTVTP to retailers at Balintawak; 2)
farmers at LTVTP to T-Ws at Balintawak to A-Ws at Balintawak to retailers at
Balintawak, Novaliches, Libertad, Kamuning, Dapitan and Nepa Q; 3) farmers at LTVTP
to T-Ws at Balintawak to W-Rs to consumers; 4) farmers to T-Ws at Nepa Q to retailers
to consumers; 5) farmers to T-Ws at Urdaneta to W-Rs to retailers to consumers; 6)
farmers to A-Ws at LTVTP to T-Ws at Balintawak to retailers at the different parts in
Manila to consumers; 7) farmers to A-Ws at Balintawak to Ws to retailers at the different
parts of Manila to consumers; 8) farmers to W-Rs at LTVTP to retailers to consumers; 9)
farmers to F-A-Ws at LTVTP to A-Ws at Balintawak to W-Rs to consumers; and 10)
farmers to F-A-W-Rs at LTVTP to consumers.

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
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F
F

PTC
LTVTP



A-W
F-A-W
A-W
F-A-W


LTVTP
LTVTP
BALINTAWAK
BALINTAWAK

A-W



F-A-W-R



PTC

LTVTP







T-W


T-W
BALINTAWAK
LTVTP

A-W

W

W
URDANETA, PANG.
BALINTAWAK
BALINTAWAK




F-A-W
W-R
W-R
URDANETA, PANG.
LTVTP
W

METRO MANILA


METRO MANILA



W-R
R
URDANETA, PANG.
LTVTP
R



METRO MANILA
W-R

METRO MANILA
CONSUMERS
URDANETA, PANG.
R
URDANETA, PANG.
CONSUMERS

LTVTP
CONSUMERS



METRO MANILA
LEGEND:

F (Farmer) A-W (Assembler-Wholesaler) F-A-W (Financier- Assembler-Wholesaler)
F-A-W-R (Financier-Assembler-Wholesaler-Retailer)T-W (Trucker-Wholesaler)

W (WholesalerW-R (Wholesaler-Retailer)R (Retailer)
LTVTP (La Trinidad Vegetable Trading Post) Metro Manila


PTC(Private Trading Center)Balintawak

Urda
neta, Pangasinan


18
Figure 3a. Spot market chains and location for cabbage

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

18



1
FARMER
RETAILER
CONSUMERS
LTVTP
BALINTAWAK
2
FARMER
T-W
A-W
LTVTP
BALINTAWAK
BALINTAWAK

CONSUMERS
R
BALINTAWAK, NOVALICHES,LIBERTAD,
KAMUNING, DAPITAN, NEPA Q
3
FARMER
T-W
W-R
LTVTP
BALINTAWAK
BALINTAWAK
CONSUMERS
4
FARMER
T-W
R
LTVTP
NEPA Q
NEPA Q
CONSUMERS
5
FARMER
T-W
W-R
LTVTP
URDANETA
URDANETA
CONSUMERS
R
URDANETA
6
FARMER
A-W
T-W
R
LTVTP
LTVTP
BALINTAWAK
BALINTAWAK,
NOVALICHES,
LIBERTAD,
KAMUNING,
CONSUMERS
DAPITAN,
NEPA Q
7
FARMER
A-W
W
R
LTVTP
BALINTAWAK
BALINTAWAK
BALINTAWAK,
NOVALICHES,

LIBERTAD,

KAMUNING,
CONSUMER
S
DAPITAN,
NEPA Q
8
FARMER
W-R
R
CONSUMERS
LTVTP
LTVTP
LTVTP
9
FARMER
F-A-W
A-W
W-R
CONSUMERS
LTVTP
LTVTP
BALINTAWAK
BALINTAWAK
10
FARMER
F-A-W-R
CONSUMERS
LTVTP
LTVTP
Figure 3b. Specific spot market chains for cabbage
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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19

Resource Sharing Structure

Operational resource sharing.Table 5a shows that most farmers (30%) just
sometimes supported by the buyers for specific production investments. In statement that
actors and buyers share investment in production/ procurement operation, most farmers
answered one. Most of the farmers answered three if they extend support to the buyers in
business operation. Also, most of them answered two in the statement that the buyers
extend credit assistance. This then implies that farmers invest on their own selves. The
buyers and the farmers sometimes support each other in business operation but there is no
credit assistance by the buyers to the farmers.
For assembler-wholesalers (A-Ws), the buyers do not support them and they do
not share investments as it reflects that 37% and 32% A-Ws disagreed in statement one
and two, respectively. But on the credit assistance, 32% A-Ws answered four. And 32%
answered that sometimes they extend support to the buyers. This then implies that A-Ws
invest on their own selves but they help each other through credit assistance especially to
the buyers.
Twenty seven percent (27%) of F-A-W respondents answered that the buyers
never support them for specific procurement investments; 33% of F-A-Ws and the buyers
never share investment inprocurementoperation; and47%answeredthatthe buyers never
extend credit assistance. And further more 27% answered that they do not extend support
to the buyers. It implies that F-A-Ws work independently.
Thirty three percent (33%) of T-Ws answered that the buyers do not support them
for specific procurement investments, 83% also answered that they never share
investment and 42% said that the buyers never extend credit assistance in the
procurement of cabbage but 42% of the T-Ws answered that they extend support to the
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

20


buyers in their business operation. This implies that the buyers are dependent on the T-
Ws in someway in their operation.
Table 5a. Distribution of respondents on operational resource sharing
1
2
3
4
5
STATEMENT
AVE.
N %
N %
N %
N % N %
Farmer











1. Buyer supports for specific production/procurement
investments.
11 24
8 17 14 30
9 20
4
9
3
2. Share investment in production/procurement operation.
17 37 14 30
8 17
1
2
6 13
2
3. I extend support to buyer in business operation.
11 24
6 13 14 30 12 26
3
7
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
11 24 12 26
8 17
8 17
7 15
3
Assembler-wholesaler








1. Buyer supports for specific production/procurement
investments.
3 16
7 37
5 26
3 16
1
5
3
2. Share investment in production/procurement operation.
4 21
6 32
5 26
3 16
1
5
3
3. I extend support to buyer in business operation.
1
5
5 26
6 32
4 21
3 16
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
4 21
5 26
3 16
6 32
1
5
3
Financier-assembler-wholesaler





1. Buyer supports for specific production/procurement
investments.
4 27
2 13
3 20
3 20
3 20
3
2. Share investment in production/procurement operation.
5 33
3 20
2 13
4 27
1
7
3
3. I extend support to buyer in business operation.
2 13
4 27
3 20
3 20
3 20
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
7 47
1
7
4 27
1
7
2 13
2
Trucker-wholesaler











1. Buyer supports for specific production/procurement
investments.
4 33
4 33
1
8
2 17
1
8
2
2. Share investment in production/procurement operation.
10 83
0
0
2 17
0
0
0
0
1
3. I extend support to buyer in business operation.
2 17
0
0
3 25
5 42
2 17
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
5 42
1
8
3 25
3 25
0
0
2
Wholesaler










1. Buyer supports for specific production/procurement
investments.
7 70
2 20
1 10
0
0
0
0
1
2. Share investment in production/procurement operation.
6 60
3 30
1 10
0
0
0
0
2
3. I extend support to buyer in business operation.
2 20
0
0
5 50
2 20
1 10
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
3 30
2 20
3 30
1 10
1 10
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

21

2
Disagree
5
Strongly agree
Table 5a. Continued . . .











1
2
3
4
5
STATEMENT
AVE.
N %
N %
N %
N % N %
Wholesaler-retailer









1. Buyer supports for specific production/procurement
investments.
12 33
4 11
9 25
6 17
5 14
3
2. Share investment in production/procurement operation.
16 44
8 22
5 14
5 14
2
6
2
3. I extend support to buyer in business operation.
4 11
3
8
9 25 11 31
9 25
4
4. Buyer extends credit assistance in the
production/procurement of cabbage.
10 28
7 19
5 14
7 19
7 19
3
Retailer











1. Buyer supports for specific production/procurement
31 56
2
4
8 15 10 18
4
7
2
investments.
2. Share investment in production/procurement operation.
36 65
4
7
8 15
5
9
2
4
2
3. I extend support to buyer in business operation.
12 22 11 20 17 31 10 18
4
7
3
4. Buyer extends credit assistance in the
production/procurement of cabbage.
28 51
6 11
8 15
7 13
4
7
2
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Most wholesalers also worked independently since 70% answered that the buyers
never support them in procurement investments, 60% answered they never share
investment and 30% answered sometimes they extend support to the buyers and 30% also
answered that sometimes the buyers extend credit assistance.
Wholesaler-retailers (W-Rs) and retailers too worked independently. Thirty three
percent (33%) of W-Rs and 56% of retailers answered that the buyers never support them
in their investments, neither also they share investment in their operation. Twenty eight
percent (28%) of W-Rs and 51% of retailers said that the buyers never extend credit to
them but they extend support to the buyers.
Overall, the respondents are not supported by the buyers and they do not share
investment their specific production/ procurement operation. But the buyers sometimes
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

22

extend credit assistance and the respondents also extend support to the buyers in their
business operation.
The responses were further validated in Table 5b, which shows the test-statistics.
There are significant differences among the different chain actors in the operational
resource sharing since some extends/shares support/investment to the buyers butsome are
not.
Strategic resource sharing.As showed in the previous table, farmers donot share
investment with the buyers as reflected in Table 6a. Thirty seven percent (37%) of
farmers answered that there is no sharing of investment. Thirty nine percent (39%)
answered that they sometimes share marketing strategies. Twenty six percent (26%) of
farmers also answered that they plan strategies to improve their business operation. This
implies that there is strategic resource sharing between farmers and buyers.
Forty percent (40%) of F-A-Ws sometimes jointly share marketing strategies and
33% never share investment. On the average, F-A-Ws sometimes plan /make strategies to
improve their business operation. This implies that there is no definite planning/ making
and sharing of strategies between F-A-Ws and buyers in their business operation.
Table 5b. Test-statistics for operational resource sharing
CHI-
STATEMENT
MEAN
df SIGNIFICANCE
SQUARE
1. Buyer supports for specific production/procurement
investments.
2.47
7.07
3
0.07
2. Share investment in production/procurement operation.
2.05
12.75
3
0.005**
3. I extend support to buyer in business operation.
2.99
8.87
3
0.031*
4. Buyer extends credit assistance in the
production/procurement of vegetables.
2.51
7.23
3
0.065
*significant
**highly significant

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

23

Table 6a. Distribution of respondents on strategic resource sharing
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
% N
%
Farmer











1. Joint sharing in production and marketing strategies.
6
13
12
26
18
39
7
15
3
7
3
2. Joint sharing in investment to attain business goals.
17
37
14
30
10
22
3
7
2
4
2
3. Plan/make strategies to improve business operation.
9
20
10
22
11
24
12
26
4
9
3
Assembler-wholesaler








1. Joint sharing in production and marketing strategies.
4
21
1
5
7
37
6
32
1
5
3
2. Joint sharing in investment to attain business goals.
7
37
4
21
4
21
3
16
1
5
2
3. Plan/make strategies to improve business operation.
3
16
6
32
4
21
4
21
2
11
3
Financier-assembler-wholesaler









1. Joint sharing in production and marketing strategies.
3
20
3
20
6
40
1
7
2
13
3
2. Joint sharing in investment to attain business goals.
5
33
3
20
2
13
4
27
1
7
3
3. Plan/make strategies to improve business operation.
4
27
1
7
4
27
4
27
2
13
3
Trucker-wholesaler








1. Joint sharing in production and marketing strategies.
4
33
1
8
4
33
2
17
1
8
3
2. Joint sharing in investment to attain business goals.
7
58
2
17
3
25
0
0
0
0
2
3. Plan/make strategies to improve business operation.
5
42
2
17
3
25
1
8
1
8
2
Wholesaler







1. Joint sharing in production and marketing strategies.
4
40
0
0
2
20
3
30
1
10
3
2. Joint sharing in investment to attain business goals.
6
60
2
20
2
20
0
0
0
0
2
3. Plan/make strategies to improve business operation.
5
50
0
0
1
10
3
30
1
10
3
Wholesaler-retailer








1. Joint sharing in production and marketing strategies.
8
22
9
25
9
25
8
22
2
6
3
2. Joint sharing in investment to attain business goals.
19
53
4
11
7
19
5
14
1
3
2
3. Plan/make strategies to improve business operation.
9
25
10
28
8
22
5
14
4
11
3
Retailer






1. Joint sharing in production and marketing strategies.
24
44
12
22
9
16
4
7
6
11
2
2. Joint sharing in investment to attain business goals.
39
71
7
13
4
7
5
9
0
0
2
3. Plan/make strategies to improve business operation.
31
56
5
9
5
9
5
9
9
16
2
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

24

The same as the F-A-Ws, T-Ws also do not have definite planning/making and
sharing of strategies in their operation. Fifty eight percent (58%) of F-A-Ws answered
that they do not share investment and 42% do not plan/make strategies. On the average,
the buyers and F-A-Ws sometimes jointly share production and marketing strategies.
Forty percent (40%) of wholesalers answered that they never jointly share in
production and marketing strategies but on the average they sometimes jointly share.
Sixty percent (60%) answered that they never jointly share investment in their operation.
Fifty percent (50%) never plan/make strategies to improve their operation but on the
average they sometimes plan/make strategies. This implies that wholesalers donot really
share strategies with the buyer in their operation.
Fifty three percent (53%) of W-Rs never share investment to attain their business
goal. Twenty eight percent (28%) donot plan/make strategies to improve in business
operation. On the average, they sometimes share marketing strategies. This implies that
there is sharing sometimes between W-Rs and buyers in strategies.
Same as the wholesalers, retailers too donot share strategies to improve their
business operation. On the average, they do not jointly share marketing strategies and
they donot share investment in their operation. Further more, retailers donot make/plan
for strategies to improve their business.
Overall, the respondents sometimes jointly share with the buyers on production
and marketing strategies. Sometimes they plan/make strategies to improve their business
operation. The respondents and the buyers do not jointly share investment to attain their
goals.
There are significant differences among the different chain actors in their strategic
resource sharing, as shown in Table 6b, for there are still some actors whojointly share
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

25

Table 6b. Test-statistics for strategic resource sharing
CHI-
STATEMENT
MEAN
df SIGNIFICANCE
SQUARE
1. Joint sharing in production and marketing strategies.
2.58
9.09 3
0.028*
2. Joint sharing in investment to attain business goals.
1.93
14.71 3
0.002**
3. Plan/make strategies to improve business operation.
2.56
8.83 3
0.032*
*significant
**highly significant
production and marketing strategies and investment, and some plan/make strategies to
improve their operation.
Information sharing. Information sharing in business operation is one important
thing in improving business operation. Farmers, in Table 7a, do not share information
specifically on production to the buyers but buyers share market information to them.
Twenty eight percent (28%) of farmers do not share production information and 39% of
farmers said buyers sometimes share market information.
Thirty seven percent (37%) of A-Ws answered that they share procurement
information to the buyers. Thirty two percent (32%) A-Ws said that both of them share
information on marketing schedules. On the average A-Ws said that buyers sometimes
share market information. This implies that there is definite information sharing between
A-Ws and buyers.
Forty percent (40%) of F-A-W respondents answered that they share procurement
information to the buyers, 33% answered that the buyers always share market
information and 53% answered that they sometimes share to each other the information
on marketing schedules. This implies that F-A-Ws and the buyers have information
sharing.


Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

26

Table 7a. Distribution of respondents on information sharing
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
6 13 13 28 12 26 10 22
5 11
3
2. Buyer always shares market information (demand,
supply, prices & cost).
4
9 10 22 18 39
9 20
5 11
3
3. Sharing of information about production and marketing
schedules.
4
9 14 30 12 26 12 26
4
9
3
Assembler-wholesaler








1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
2 11
3 16
3 16
7 37
4 21
3
2. Buyer always shares market information (demand,
supply, prices & cost).
3 16
2 11
5 26
5 26
4 21
3
3. Sharing of information about production and marketing
schedules.
3 16
0
0
5 26
6 32
5 26
4
Financier-assembler-wholesaler




1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
0
0
3 20
3 20
6 40
3 20
4
2. Buyer always shares market information (demand,
supply, prices & cost).
0
0
3 20
4 27
5 33
3 20
4
3. Sharing of information about production and marketing
schedules.
0
0
1
7
8 53
3 20
3 20
4
Trucker-wholesaler











1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
2 17
2 17
3 25
0
0
5 42
3
2. Buyer always shares market information (demand,
supply, prices & cost).
2 17
2 17
2 17
4 33
2 17
3
3. Sharing of information about production and marketing
schedules.
2 17
2 17
0
0
5 42
3 25
3
Wholesaler










1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
2 20
2 20
2 20
2 20
2 20
3
2. Buyer always shares market information (demand,
supply, prices & cost).
1 10
3 30
2 20
2 20
2 20
3
3. Sharing of information about production and marketing
schedules.
2 20
4 40
1 10
2 20
1 10
3
Wholesaler-retailer









1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
4 11
1
3 11 31
6 17 14 39
4
2. Buyer always shares market information (demand,
supply, prices & cost).
7 19
4 11 14 39
4 11
7 19
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

27

Table 7a. Continued . . .











1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
3. Sharing of information about production and marketing
schedules.
5 14
6 17 11 31
8 22
6 17
3
Retailer











1. Sharing of production/procurement information
(volume, cost, production schedules) to the buyers.
20 36
6 11
4
7 14 25 11 20
3
2. Buyer always shares market information (demand,
supply, prices & cost).
23 42
5
9 15 27
8 15
4
7
2
3. Sharing of information about production and marketing
schedules.
20 36 11 20 10 18
8 15
6 11
2
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Trucker-wholesalers (T-Rs) always share procurement information to the buyers.
The buyers and T-Ws share with each other information. Forty two percent (42%) of T-
Ws answered they always share procurement information to the buyers. Thirty three
percent (33%) answered that the buyers share market information and 42% answered that
they share information on marketing schedules.
On the average, wholesalers sometimes share procurement information to the
buyers. Thirty percent (30%) answered that the buyers do not share market information
and 40% answered that they do not both share information on marketing schedules. This
implies that wholesalers and the buyers do not share to each other information.
Wholesaler-retailers (W-Rs) and buyers have limited information sharing.
Wholesaler-retailers are the one who always shares information. Thirty nine percent
(39%) of W-Rs answered that they share procurement information to the buyers. Thirty
nine percent (39%) answered that the buyers sometimes share market information. Thirty
one percent (31%) answered that they both sometimes share information about marketing
schedules.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

28

Retailers never share information to the buyers. Thirty six percent (36%)
answered that they never share procurement information to the buyers. Forty two percent
(42%) answered that the buyers never share market information and 36% answered that
they both never share information on marketing schedules.
The respondents sometimes shares information with the buyer in their operation.
The buyers also sometimes share information.
Table 7b shows that there are significant differences among the different chain
actors in the sharing of production/ procurement information to the buyers, sharing of
market information, and sharing of information about production and marketing
schedules. Some respondents share information while others do not share information.
Risk and Reward Sharing

Table 8a presents the distribution of respondents on risk and reward sharing. On
the average, the buyers and the farmers share equal risks and benefits. But it also shows
that the farmers take more risks in their transactions and sometimes the buyers derive
more benefits than the farmers.
Table 7b. Test-statistics for information sharing
CHI-
STATEMENT
MEAN
df
SIGNIFICANCE
SQUARE
1. Sharing of production/procurement information (volume, cost,
production schedules) to the buyers.
3.16
9.65
3
0.022*
2. Buyer always shares market information (demand, supply, prices
& cost).
2.91
14.14
3
0.003**
3. Sharing of information about production and marketing
schedules.
2.94
15.18
3
0.002**
*significant
**highly significant


Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

29

Table 8a. Distribution of respondents on risk and reward sharing
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. Same risks from the transaction we
make.
10
22
7
15
21
46
4
9
4
9
3
2. Share equal benefits from transaction.
5
11
9
20
21
46
8
17
3
7
3
3. I take more risk from the transaction I
make with buyers.
1
2
5
11
16
35
16
35
8
17
4
4. Buyer derives more benefits from the
business operation.
2
4
10
22
9
20
19
41
6
13
3
Assembler-wholesaler








1. Same risks from the transaction we
make.
0
0
1
5
8
42
7
37
3
16
4
2. Share equal benefits from transaction.
0
0
2
11
6
32
9
47
2
11
4
3. I take more risk from the transaction I
make with buyers.
0
0
4
21
6
32
6
32
3
16
3
4. Buyer derives more benefits from the
business operation.
0
0
5
26
5
26
5
26
4
21
3
Financier-assembler-wholesaler





1. Same risks from the transaction we
make.
0
0
1
7
5
33
5
33
4
27
4
2. Share equal benefits from transaction.
0
0
1
7
5
33
4
27
5
33
4
3. I take more risk from the transaction I
make with buyers.
0
0
1
7
12
80
0
0
1
7
3
4. Buyer derives more benefits from the
business operation.
0
0
0
0
10
67
5
33
0
0
3
Trucker-wholesaler








1. Same risks from the transaction we
make.
1
8
2
17
4
33
2
17
3
25
3
2. Share equal benefits from transaction.
1
8
2
17
5
42
3
25
1
8
3
3. I take more risk from the transaction I
make with buyers.
1
8
4
33
3
25
2
17
2
17
3
4. Buyer derives more benefits from the
business operation.
1
8
3
25
4
33
2
17
2
17
3
Wholesaler










1. Same risks from the transaction we
make.
3
30
1
10
2
20
1
10
3
30
3
2. Share equal benefits from transaction.
1
10
1
10
4
40
3
30
1
10
3
3. I take more risk from the transaction I
make with buyers.
3
30
0
0
4
40
2
20
1
10
3
4. Buyer derives more benefits from the
business operation.
3
30
1
10
5
50
0
0
1
10
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

30

Table 8a. Continued . . .










1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Wholesaler-retailer









1. Same risks from the transaction we
make.
10
28
5
14
12
33
8
22
1
3
3
2. Share equal benefits from transaction.
6
17
6
17
8
22
12
33
4
11
3
3. I take more risk from the transaction I
make with buyers.
1
3
2
6
10
28
11
31
12
33
4
4. Buyer derives more benefits from the
business operation.
2
6
5
14
11
31
12
33
6
17
3
Retailer











1. Same risks from the transaction we
make.
13
24
15
27
13
24
7
13
7
13
3
2. Share equal benefits from transaction.
7
13
15
27
16
29
10
18
7
13
3
3. I take more risk from the transaction I
make with buyers.
4
7
12
22
18
33
15
27
6
11
3
4. Buyer derives more benefits from the
business operation.
5
9
10
18
17
31
19
35
4
7
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Forty two percent (42%) of A-Ws answered that they sometimes share same risks
with the buyers but on the average, they share the same. Forty seven percent (47%)
answered that they share equal benefits with the buyers but in the average, the buyers
derive more benefits.
In the average, the F-A-Ws and buyers share same risks and benefits equally on
the transactions they make. But sometimes F-A-Ws take more risk and sometimes buyers
derive more benefits.
In the average, the wholesalers and buyers sometimes share same risks and
benefits in their transactions. Sometimes wholesalers take more risk in their operation.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

31

In the table, it shows that retailers and buyers do not share same risks because

sometimes retailers take more risk. The buyers derive more benefits from their
transaction but sometimes they share equal benefits.
Table 8b. Test-statistics for risk and reward sharing
CHI-
STATEMENT
MEAN
df
SIGNIFICANCE
SQUARE
1. Same risks from the transaction we make.
2.89
18.83
3
0.00**
2. Share equal benefits from transaction.
3.09
12.8
3
0.01*
3. I take more risk from the transaction I make with buyers.
3.36
5.57
3
0.14
4. Buyer derives more benefits from the business operation.
3.25
1.4
3
0.71
*significant
**highly significant
It is reflected in the mean that the respondents were undecided if they share risk
and benefits with the buyers. It shows that sometimes they do not share equally in the
rewards and risks in their operation.

There are no significant differences among the different chain actors in the risk
and reward sharing except on the equal sharing of benefits as shown in Table 8b. Some
have equal sharing but some also donot have equal sharing.
Decision Style

The decision style of the respondents whether centralized or decentralized is
presented in Table 9a and 10a, respectively.
In Table 9a, forty one percent (41%) of the farmers decide on their own most of
the time but they involve other people on decisions on what product to sell and what is
the price. Sometimes they are influenced by the buyers on the decisions they make. There
is no joint decision making between the farmers and the buyers. Farmers are more on
decentralized decision style.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

32


Forty seven percent(47%) of A-Ws and the buyers decide at their own but they
involve other people on decisions on products to sell and the price. The A-Ws sometimes
are dictated and influenced by the buyers in the decision they make. Assembler-
wholesalers (A-Ws) and the buyers jointly share decision in procurement and delivery
schedules. This implies that there is centralization of decisions.
Forty seven percent (47%) of F-AWs decide at their own in business operation;
and F-A-Ws and the buyers have their own decision. Financier-assembler-wholesalers (F-
A-Ws) also do not involve other people to decide on product to sell and its price. Even
though they decide at their own, there is still sharing of decision in procurement

anddelivery schedules. The buyers also sometimes have influence on the decisions done
by F-A-Ws. This implies that F-A-Wsare more on decentralized decision style.
Table 9a. Distribution of retailers on centralized decision style
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. Own decision about the business
operations.
2
4
5
11
7
15
13
28
19
41
4
2. Buyer dictates the decision to
undertake.
7
15
13
28
20
43
3
7
3
7
3
3. Buyer never influences any decisionI
make.
6
13
12
26
22
48
2
4
4
9
3
4. I decide the volume to be purchased.
1
2
5
11
10
22
17
37
13
28
4
5. I choose the size/variety/color to be
procured.
3
7
3
7
10
22
15
33
15
33
4
6. Joint sharing of decision in
procurement and delivery schedules.
8
17
16
35
9
20
8
17
5
11
3
Assembler-wholesaler








1. Own decision about the business
operations.
0
0
0
0
5
26
5
26
9
47
4
2. Buyer dictates the decision to
undertake.
3
16
3
16
5
26
5
26
3
16
3
3. Buyer never influences any decision I
make.
0
0
6
32
7
37
3
16
3
16
3

4. I decide the volume to be purchased.
1
5
4
2
1
3
1
6
7
3
7
4
2
1
3
5. I choose the size/variety/color to be
procured.
2
11
1
5
3
16
8
42
5
26
4
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

33

6. Joint sharing of decision in
procurement and delivery schedules.
3
16
1
5
2
11
8
42
5
26
4
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree








Table 9a. Continued . . .










1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Financier-assembler-wholesaler







1. Own decision about the business
operations.
0
0
1
7
3
20
4
27
7
47
4
2. Buyer dictates the decision to
undertake.
4
27
1
7
7
47
2
13
1
7
3
3. Buyer never influences any decision I
make.
1
7
4
27
4
27
3
20
3
20
3
4. I decide the volume to be purchased.
0
0
1
7
4
27
3
20
7
47
4
5. I choose the size/variety/color to be
procured.
0
0
0
0
4
27
3
20
8
53
4
6. Joint sharing of decision in
procurement and delivery schedules.
1
7
2
13
4
27
4
27
4
27
4
Trucker-wholesaler









1. Own decision about the business
operations.
0
0
0
0
0
0
4
33
8
67
5
2. Buyer dictates the decision to
undertake.
4
33
3
25
2
17
1
8
2
17
3
3. Buyer never influences any decision I
make.
2
17
5
42
1
8
1
8
3
25
3
4. I decide the volume to be purchased.
0
0
3
25
1
8
0
0
8
67
4
5. I choose the size/variety/color to be
procured.
1
8
1
8
3
25
2
17
5
42
4
6. Joint sharing of decision in
procurement and delivery schedules.
1
8
1
8
4
33
1
8
5
42
4
Wholesaler










1. Own decision about the business
operations.
1
10
1
10
1
10
3
30
4
40
4
2. Buyer dictates the decision to
undertake.
6
60
2
20
1
10
0
0
1
10
2
3. Buyer never influences any decision I
make.
1
10
2
20
2
20
3
30
2
20
3
4. I decide the volume to be purchased.
1
10
1
10
1
10
3
30
4
40
4
5. I choose the size/variety/color to be
procured.
1
10
0
0
3
30
3
30
3
30
4
6. Joint sharing of decision in
procurement and delivery schedules.
2
20
1
10
4
40
2
20
1
10
3
Wholesaler-retailer









1. Own decision about the business
0
0
2
6
5
14
7
19
22
61
4
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

34

operations.
2. Buyer dictates the decision to
undertake.
8
22
14
39
5
14
4
11
5
14
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Table 9a. Continued . . .










1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
3. Buyer never influences any decision I
make.
3
8
10
28
8
22
6
17
9
25
3
4. I decide the volume to be purchased.
0
0
2
6
4
11
7
19
23
64
4
5. I choose the size/variety/color to be
procured.
1
3
3
8
5
14
10
28
17
47
4
6. Joint sharing of decision in
procurement and delivery schedules.
7
19
8
22
6
17
9
25
6
17
3
Retailer











1. Own decision about the business
operations.
0
0
1
2
3
5
7
13
44
80
5
2. Buyer dictates the decision to
undertake.
22
40
14
25
9
16
5
9
5
9
2
3. Buyer never influences any decision I
make.
6
11
15
27
14
25
15
27
5
9
3
4. I decide the volume to be purchased.
1
2
3
5
6
11
11
20
34
62
4
5. I choose the size/variety/color to be
procured.
3
5
4
7
5
9
12
22
31
56
4
6. Joint sharing of decision in
procurement and delivery schedules.
21
38
5
9
10
18
12
22
7
13
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Sixty seven percent (67%) of T-Ws decide at their own as well as the buyers.
Trucker-wholesalers also do not involve other people on the decisions on selling products
and setting the price. The buyers never dictate decisions they should undertake but the
buyers still have influence on the T-Ws’ decisions. Though they decide at their own,
there is still sharing of decision in procurement and delivery schedules. This implies that
T-Wsare more on decentralized decision style.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

35

Forty percent (40%) of the wholesalers decide on their own in their business
operation. The buyers do not involve others in decision wholesalers should undertake.
Wholesalers also do not involve others in decision making. Sometimes buyers and
wholesalers jointly share decision in procurement and delivery schedules. This shows that
wholesalers have decentralization of decision.
In the overall response of the respondents on the centralized decision style, their
decisions are sometimes centralized.
There are significant differences in the centralized decision style among the
different chain actors, as shown in Table 9b, because some actors have centralized
decision and some also do not have.

It is presented in Table 10a that W-Rs and buyers are decentralized in decision
making, since 42% have their own decision and they do not even jointly share decision in
the business operation. The buyers do not dictate W-Rs’ decision but the buyer influences
the decision of the W-Rs.
The retailers are sometimes influenced by the buyers in decision making in their
business operation but they have their own decision. Not like the other actors who are
being dictated in the decision they make, retailers are never dictated by the buyers on the
decisions they should undertake and they never involve other people in decision making.
Table 9b. Test-statistics for centralized decision style
CHI-
STATEMENT
MEAN
df
SIGNIFICANCE
SQUARE
1. Own decision about the business operations.
4.31
18.76
3
0.000**
2. Buyer dictates the decision to undertake.
3
9.35
3
0.025*
3. Buyer never influences any decision I make.
2.99
3.85
3
0.278
4. I decide the volume to be purchased.
4.07
15.06
3
0.002**
5. I choose the size/variety/color to be procured.
3.97
4.63
3
0.201
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

36

6. Joint sharing of decision in procurement and delivery
schedules.
2.95
11.57
3
0.009**
*significant
**highly significant



Table 10a. Distribution of retailers on decentralized decision style
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. Other people are involved in
deciding.
4
9
8
17
13
28
15
33
6
13
3
2. Buyer and I have our own decision.
1
2
4
9
11
24
18
39
12
26
4
Assembler-wholesaler








1. Other people are involved in
deciding.
3
16
3
16
3
16
7
37
3
16
3
2. Buyer and I have our own decision.
0
0
2
11
6
32
2
11
9
47
4
Financier-assembler-wholesaler







1. Other people are involved in
deciding.
4
27
5
33
2
13
2
13
2
13
3
2. Buyer and I have our own decision.
1
7
2
13
2
13
2
13
8
53
4
Trucker-wholesaler









1. Other people are involved in
deciding.
5
42
3
25
1
8
2
17
1
8
2
2. Buyer and I have our own decision.
0
0
1
8
1
8
2
17
8
67
4
Wholesaler










1. Other people are involved in
4
40
3
30
0
0
1
10
2
20
2
deciding.
2. Buyer and I have our own decision.
1
10
2
20
3
30
1
10
3
30
3
Wholesaler-retailer









1. Other people are involved in
11
31
6
17
5
14
8
22
6
17
3
deciding.
2. Buyer and I have our own decision.
2
6
4
11
4
11
11
31
15
42
4
Retailer










1. Other people are involved in
deciding.
25
45
12
22
6
11
10
18
2
4
2
2. Buyer and I have our own decision.
2
4
6
11
6
11
9
16
32
58
4
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

37

They do not jointly share decisions in procurement or delivery schedules. This
then implies that retailers and the buyers are decentralized in decision making.
In the overall response of the respondents on the decentralized decision style, the
respondents and the buyers have their own decisions.
As shown in Table 10b there is a high significant difference among the different
actors in the involvement of other people in decision making. Some actors involve other
people but some just decide on their own self.
Level of Control

Table 11a presents the distribution of respondents on level of control in their
business operation. Twenty eight percent (28%) of the farmers answered that
theynevermonitor the buyers on the production schedules planned. Twenty eight percent
(28%) also answered that they never set rules in their business operation and 26% also
said that the buyers never set rules. This then implies that the level of control of retailers
and the buyers is low.
Table 10b.Test-statistics for decentralized decision style
STATEMENT
MEAN CHI-SQUARE
df
SIGNIFICANCE
1. Other people are involved in deciding.
2.67
17.81
3
0.000**

2. Buyer and I have our own decision.
3.95
5.06
3
0.167
*significant
**highly significant
Table 11a. Distribution of respondents on level of control
1
2
3
4
5
STATEMENT
AVE.
N %
N %
N %
N %
N %
Farmer











1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
13 28 11 24 12 26
6 13
4
9
3
2. I set rules in our business operation.
13 28 12 26
9 20 10 22
2
4
2
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

38

3. The buyer sets rules in our business operation
12 26 11 24 11 24
8 17
4
9
3
Assembler-wholesaler








1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
3 16
1
5
6 32
3 16
6 32
3
2. I set rules in our business operation.
3 16
2 11
8 42
2 11
4 21
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Table 11a. Continued . . .











1
2
3
4
5
STATEMENT
AVE.
N %
N %
N %
N %
N %
3. The buyer sets rules in our business operation
4 21
4 21
6 32
2 11
3 16
3
Financier-assembler-wholesaler





1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
0
0
3 20
5 33
4 27
3 20
3
2. I set rules in our business operation.
0
0
1
7
6 40
3 20
5 33
4
3. The buyer sets rules in our business operation
4 27
3 20
4 27
1
7
3 20
3
Trucker-wholesaler








1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
2 17
2 17
2 17
2 17
4 33
3
2. I set rules in our business operation.
2 17
3 25
1
8
4 33
2 17
3
3. The buyer sets rules in our business operation
4 33
5 42
0
0
2 17
1
8
2
Wholesaler











1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
3 30
0
0
2 20
2 20
3 30
3
2. I set rules in our business operation.
1 10
3 30
1 10
2 20
3 30
3
3. The buyer sets rules in our business operation
4 40
1 10
2 20
1 10
2 20
3
Wholesaler-retailer









1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
10 28
5 14 10 28
2
6
9 25
3
2. I set rules in our business operation.
5 14
6 17
6 17
8 22 11 31
3
3. The buyer sets rules in our business operation
11 31 12 33
5 14
2
6
6 17
2
Retailer











1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
28 51
8 15 10 18
5
9
4
7
2
2. I set rules in our business operation.
18 33
7 13
8 15 14 25
8 15
3
3. The buyer sets rules in our business operation
28 51
4
7
6 11
8 15
9 16
2
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Assembler-wholesalers (A-Ws) have little control and monitoring in their
business operation. Assembler-wholesalers just sometimes set rules so as to the buyers
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

39

and sometimes A-Ws monitor their procurement/marketing schedules. This implies that
there is low level of control among A-Ws and buyers.
Assembler-wholesalers (A-Ws) have little control and monitoring in their
business operation. Assembler-wholesalers just sometimes set rules so as to the buyers
and sometimes A-Ws monitor their procurement/marketing schedules. This implies that
there is low level of control among A-Ws and buyers.

Financier-assembler-wholesalers (F-A-Ws) also sometimes monitor the buyers in
the marketing/ procurement schedules planned as it is reflected in the table that 33% of F-
A-Ws answered three. There is sometimes setting of rules between F-A-Ws and the
buyers since 40% of F-A-Ws answered that they sometimes set rules in their business
operation and 27% answered that the buyers sometimes sets rules. This still implies that
the level of control is low since there is little monitoring.
T-Ws have low level of control on their business operation. Even though T-Ws set
rules in their operation, they just sometimes monitor the procurement/marketing
schedules planned. Thirty three percent (33%) answered that they set rules in their
business operation. Forty two percent (42%) answered that the buyers do not set rules.
Forty percent (40%) of wholesalers answered that the buyers never sets rules in
their business operation. On the average wholesalers answered that they sometimes set
rules and sometimes monitor the buyersonprocurement/ marketing schedules planned.
This implies that level of control of wholesalers is low because there is no strict
monitoring and control.
In the average W-Rs sometimes monitor the buyers on the procurement/marketing
schedules planned. Thirty one percent (31%) answered that W-Rs set rules in the
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

40

operation. The buyers do not set rules. This implies that the level of control of W-Rs in
business operation is low.
Fifty one percent (51%) of retailers never monitor the buyers on the procurement/
marketing schedule planned, 33% never set rules in their business operation, and 51%
said that the buyers never set rules. This implies that retailers have very low level of
control on their business operation.

In the overall response, the respondents said that sometimes they monitor the
buyers on the procurement/ marketing schedules planned. Sometimes the respondents and
the buyers set rules in their operation.

There is a significant difference among the actors in the setting of rules in their
business operation as shown in Table 11b. Some sets rules but others never sets rules.
Comprehensive Selection Procedure

The distribution of respondents according to their comprehensive selection
procedure is presented in Table 12a. Farmers (30%), A-Ws (37%), F-A-Ws (40%), and
W-Rs (36%) said that they select buyers who are trustworthy. Others like T-Ws and
wholesalers said that sometimes they select trustworthy buyers; and retailers said that
they never select buyers who are trustworthy. Most of the respondents said that they
choose buyers whom they know and trade with for a long time but wholesalers said that
they just sometimes choose buyers whom they know and trade with for a long time.
Respondents like farmers (24%); A-Ws (32%); and F-A-Ws (33%) said that they choose
buyers who have adequate resources. Wholesalers (30%), W-Rs (33%) andretailers

(38%) saidthat they donot choose buyers who have adequate resources.
Table 11b. Test-statistics for level of control
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

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41

CHI-
STATEMENT
MEAN
df SIGNIFICANCE
SQUARE
1. I always monitor the buyer on the
procurement/production/marketing schedules planned.
2.7
23.11 3
0.000**

2. I set rules in our business operation.
2.97
13.23 3
0.004**
3. The buyer sets rules in our business operation
2.51
3.09 3
0.378
*significant
**highly significant
Table 12a. Distribution of respondents on comprehensive selection procedure
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. I select the buyer who is trustworthy.
4
9
6 13 10 22 12 26 14 30
4
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
0
0
4
9 12 26
9 20 21 46
4
3. Buyer chooses the sellers that offer lower price of
vegetables.
3
7
3
7
8 17 17 37 15 33
4
4. I choose buyers whom I know and trade with for a
long time.
1
2
6 13 12 26 19 41
8 17
4
5. I choose buyers with adequate resources.
5 11 10 22 10 22 10 22 11 24
3
Assembler-Wholesaler


1. I select the buyer who is trustworthy.
0
0
2 11
5 26
5 26
7 37
4
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
1
5
3 16
4 21
5 26
6 32
4
3. Buyer chooses the sellers that offer lower price of
vegetables.
1
5
0
0
1
5 10 53
7 37
4
4. I choose buyers whom I know and trade with for a
long time.
2 11
1
5
2 11
8 42
6 32
4
5. I choose buyers with adequate resources.
0
0
4 21
4 21
6 32
5 26
4
Financier-Assembler-Wholesaler


1. I select the buyer who is trustworthy.
1
6
2 12
1
6
6 35
7 41
4
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
0
0
2 12
3 18
6 35
6 35
4

3. Buyer chooses the sellers that offer lower price of
vegetables.
1
6
2 12
6 35
6 35
2 12
3

4. I choose buyers whom I know and trade with for a










long time.
0
0
2 12
3 18
5 29
7 41
4
5. I choose buyers with adequate resources.
0
0
2 12
4 24
7 41
4 24
4
Financier-Assembler-Wholesaler


1. I select the buyer who is trustworthy.
1
7
2 13
1
7
5 33
6 40
3
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
0
0
2 13
3 20
5 33
5 33
3
3. Buyer chooses the sellers that offer lower price of
vegetables.
1
7
2 13
5 33
5 33
2 13
3
4. I choose buyers whom I know and trade with for a
long time.
0
0
2 13
3 20
4 27
6 40
3
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

42

5. I choose buyers with adequate resources.
0
0
2 13
4 27
5 33
4 27
3
Trucker-Wholesaler


1. I select the buyer who is trustworthy.
3 25
0
0
3 25
3 25
3 25
3
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
0
0
1
8
4 33
2 17
5 42
4

3. Buyer chooses the sellers that offer lower price of
vegetables.
0
0
0
0
1
8
8 67
3 25
4
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Table 12a. Continued. . .










1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
4. I choose buyers whom I know and trade with for a
long time.
2 17
1
8
1
8
4 33
4 33
4

5. I choose buyers with adequate resources.
2 17
2 17
4 33
3 25
1
8
3
Wholesaler


1. I select the buyer who is trustworthy.
3 30
1 10
4 40
0
0
2 20
3
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
1 10
1 10
2 20
2 20
4 40
4

3. Buyer chooses the sellers that offer lower price of
vegetables.
0
0
0
0
3 30
2 20
5 50
4
4. I choose buyers whom I know and trade with for a
long time.
2 20
0
0
4 40
1 10
3 30
3
5. I choose buyers with adequate resources.
3 30
3 30
1 10
2 20
1 10
3
Wholesaler-Retailer


1. I select the buyer who is trustworthy.
5 14
6 17
5 14
7 19 13 36
3
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
3
8
3
8
9 25
5 14 16 44
4

3. Buyer chooses the sellers that offer lower price of
vegetables.
1
3
2
6
5 14
8 22 20 56
4
4. I choose buyers whom I know and trade with for a
long time.
1
3
4 11 11 31
6 17 14 39
4
5. I choose buyers with adequate resources.
4 11 12 33
6 17
8 22
6 17
3
Retailer


1. I select the buyer who is trustworthy.
19 35
7 13
7 13
9 16 13 24
3
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
5
9
8 15
9 16 14 25 19 35
4

3. Buyer chooses the sellers that offer lower price of
vegetables.
5
9
6 11
6 11 12 22 26 47
4
4. I choose buyers whom I know and trade with for a
long time.
8 15
9 16 12 22 11 20 15 27
3
5. I choose buyers with adequate resources.
14 25 21 38
8 15
4
7
8 15
2
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

43


Most of the respondents said that the buyers choose the sellers with good quality
and adequate volume of cabbage; and they also said that buyers choose sellers that offer
lower price.

This implies that both buyers and sellers have their own comprehensive selection
procedure in procuring and dealing with the sellers or the buyers.
In the overall response of the different actors, they sometimes select buyers who
are trustworthy and buyers with adequate resources. They choose buyers whom they
knew and trade with for a long time. The buyers too, select the sellers who offer lower
price and sell a good quality cabbage.
In Table 12b, there is no significant difference among the different actors in their
response except on choosing the buyer who is trustworthy and buyers with adequate
resources. Some choose buyers who are trustworthy and with adequate resources but
others do not choose buyers.
Socialization

Table 13a and 14a shows the socialization of chain actors of cabbage whether
natural or deliberate. Farmers, A-Ws, and F-A-Ws said that they have established close
relationship with the buyers and they have been trading for a long period of time and
sometimes they communicate informally. The close personal relationship they have

established is mainly for their business since they strongly agreed that they transact with
the buyers mainly for business.
Table 12b. Test-statistics for comprehensive selection procedure
STATEMENT
MEAN
CHI-
df
SIGNIFICANCE
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

44

SQUARE
1. I select the buyer who is trustworthy.
3.33
10.76
3
0.013*
2. Buyer chooses the sellers with good quality and
adequate volume of vegetables.
3.79
2.21
3
0.529
3. Buyer chooses the sellers that offer lower price of
vegetables.
3.95
4.52
3
0.211
4. I choose buyers whom I know and trade with for a
long time.
3.57
4.30
3
0.231
5. I choose buyers with adequate resources.
3.02
19.22
3
0.000**
*significant
**highly significant

In Table 13a, trucker-wholesalers (T-Ws) and retailers said that they have been

trading with the buyers for a long period of time and they constantly communicate
50

informally with the buyers. They also said that they have little closeness with the buyers.
Table 13a. Distribution of respondents on natural socialization
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. The buyer and I have been trading with the buyer for long
period of time.
2
4
6 13
8 17 21 46
9 20
4
2. We constantly communicate informally.
4
9
5 11 16 35 10 22 11 24
3
3. I have established close personal relationship with the
buyer of my cabbage.
4
9
9 20 13 28 15 33
5 11
3
Assembler-Wholesaler







1. The buyer and I have been trading with the buyer for long
period of time.
0
0
0
0
5 26
7 37
7 37
4
2. We constantly communicate informally.
1
5
3 16
3 16
6 32
6 32
4
3. I have established close personal relationship with the
buyer of my cabbage.
1
5
0
0
5 26
7 37
6 32
4
Financier-Assembler-Wholesaler





1. The buyer and I have been trading with the buyer for long
period of time.
0
0
0
0
2 13
8 53
5 33
4
2. We constantly communicate informally.
1
7
0
0
3 20
4 27
7 47
4
3. I have established close personal relationship with the
buyer of my cabbage.
0
0
2 13
4 27
4 27
5 33
4
Trucker-Wholesaler








1. The buyer and I have been trading with the buyer for long
period of time.
0
0
0
0
3 25
5 42
4 33
4
2. We constantly communicate informally.
2 17
2 17
3 25
5 42
0
0
3
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

45

3. I have established close personal relationship with the
buyer of my cabbage.
0
0
0
0
5 42
4 33
3 25
4
Wholesaler











1. The buyer and I have been trading with the buyer for long
period of time.
0
0
2 20
3 30
1 10
4 40
4
2. We constantly communicate informally.
4 40
0
0
3 30
2 20
1 10
3
3. I have established close personal relationship with the
buyer of my cabbage.
1 10
0
0
4 40
2 20
3 30
4
Wholesaler-Retailer








1. The buyer and I have been trading with the buyer for long
period of time.
0
0
3
8 10 28
9 25 14 39
4
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree
Table 13a. Continued . . .










1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
2. We constantly communicate informally.
4 11
5 14 11 31
5 14 11 31
3
3. I have established close personal relationship with the
buyer of my cabbage.
2
6
2
6 16 44
6 17 10 28
4
Retailer











1. The buyer and I have been trading with the buyer for long
period of time.
3
5
7 13 13 24 14 25 18 33
4
2. We constantly communicate informally.
8 15 12 22 13 24 16 29
6 11
3
3. I have established close personal relationship with the
buyer of my cabbage.
6 11
8 15 16 29 14 25 11 20
3
LEGEND:



Numerical value
Descriptive equivalent
3
Undecided
1
Strongly disagree
4
Moderately agree
2
Disagree
5
Strongly agree

Wholesalers and W-Rs said that they have been trading with the buyers for a long
period of time and have little close personal relationship with the buyers. Wholesalerssaid
that they never constantly communicate informally with the buyers while W-Rs
sometimes communicate informally with the buyer.This implies that the actors socialize
with the buyers mostly for business only.
For the overall response of the different actors on their natural socialization, they
have been trading with the buyers for a long period of time. They sometimes
communicate informally and they donot really have close relationship with the buyers.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

46

In the deliberate socialization of the different actors shown in Table 14a, the

respondents transact with the buyers mainly for business. They sometimes choose the
buyers with good reputation. The buyers negotiate with them fairly.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

47

Table 14a. Distribution of respondents on deliberate socialization
1
2
3
4
5
STATEMENT
AVE.
N
%
N
%
N
%
N
%
N
%
Farmer











1. I transact with the buyer mainly for business.
1
2
1
2
9
20
11
24
24
52
4
2. I choose the buyer with good reputation.
3
7
6
13
17
37
11
24
9
20
3
3. The buyer negotiates with me fairly.
1
2
7
15
25
54
7
15
6
13
3
Assembler-Wholesaler











1. I transact with the buyer mainly for business.
0
0
1
5
2
11
8
42
7
37
4
2. I choose the buyer with good reputation.
1
5
1
5
3
16
9
47
5
26
4
3. The buyer negotiates with me fairly.
0
0
0
0
8
42
5
26
6
32
4
Financier-Assembler-Wholesaler











1. I transact with the buyer mainly for business.
0
0
0
0
3
20
1
7
11
73
5
2. I choose the buyer with good reputation.
0
0
2
13
4
27
3
20
6
40
4
3. The buyer negotiates with me fairly.
0
0
0
0
7
47
2
13
6
40
4
Trucker-Wholesaler











1. I transact with the buyer mainly for business.
0
0
2
17
0
0
2
17
8
67
4
2. I choose the buyer with good reputation.
2
17
3
25
2
17
3
25
2
17
3
3. The buyer negotiates with me fairly.
0
0
0
0
5
42
3
25
4
33
4
Wholesaler











1. I transact with the buyer mainly for business.
0
0
0
0
1
10
5
50
4
40
4
2. I choose the buyer with good reputation.
4
40
1
10
2
20
1
10
2
20
3
3. The buyer negotiates with me fairly.
1
10
1
10
4
40
1
10
3
30
3
Wholesaler-Retailer


1. I transact with the buyer mainly for business.
0
0
2
6
6
17
4
11
24
67
4
2. I choose the buyer with good reputation.
5
14
5
14
12
33
5
14
9
25
3
3. The buyer negotiates with me fairly.
0
0
4
11
13
36
12
33
7
19
4
Retailer











1. I transact with the buyer mainly for business.
1
2
1
2
9
16
8
15
36
65
4
2. I choose the buyer with good reputation.
13
24
14
25
14
25
6
11
8
15
3
3. The buyer negotiates with me fairly.
1
2
3
5
25
45
14
25
12
22
4

There are significant differences among the different actors in their natural and
deliberate socialization with the buyers as shown in Table 13b and 14b. Some do not
communicate with their buyers informally and some have established close relationship
with the buyers. There is significant difference among the actors in the fair negotiation of
buyers and high significant difference in the choosing of buyers with good reputation.
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

48

Table 13b. Test-statistic for natural socialization
STATEMENT
MEAN
CHI-SQUARE
df
SIGNIFICANCE
1. The buyer and I have been trading with the buyer for long period
of time.
3.81
4.58
3
0.205
2. We constantly communicate informally.
3.32
10.12
3
0.018*
3. I have established close personal relationship with the buyer of
my vegetables.
3.47
8.85
3
0.031*
*significant
Table 14b. Test-statistics for deliberate socialization
STATEMENT
MEAN
CHI-SQUARE
df
SIGNIFICANCE
1. I transact with the buyer mainly for business.
4.32
1.41
3
0.703
2. I choose the buyer with good reputation.
3.19
17.88
3
0.000**
3. The buyer negotiates with me fairly.
3.59
9.91
3
0.019*
*significant
**highly significant
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for
Cabbage. JOVINIA SUBLA LUCAS/ 2011.

---

49

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary

The study was conducted to identify the different chains of cabbage in the spot market
and to determine the coordination mechanisms and attributes adopted by the chain actors of
cabbage, specifically at La Trinidad, Benguet; Urdaneta City, Pangasinan; and Metro Manila.

There were 46 farmers under production group; 19 A-Ws and 15 F-A-Ws with a total of
34 under assembly group; 12 T-Ws, 10 wholesalers and 36 W-Rs with a total of 58 under
distribution; and 55 retailers under retailing with a grand total of 193 respondents. A survey
questionnaire was used to gather the needed data. The data were tabulated and analyzed using
frequency, tables, percentage and test-statistics.

Most of the respondents are aged within the range of 21-30 and 31-40 years old and
majority (67%) is female. Most of them are married and have attained high school and college
level. Majority of the respondents do not have organizational affiliation related to vegetable
trading business and most are engaged one to five years in business.

There were several different chains for cabbage identified. All of the chains started from
the farmers in La Trinidad, Benguet and ended to the different consumers in La Trinidad,
Benguet; Urdaneta City, Pangasinan and Metro, Manila.

In the operational resource sharing, most of the respondents donot share investments in
their business operation. In strategic resource sharing, majority sometimes share their strategies
to improve their operation and also same in information sharing. In the sharing of risk and
reward in business transactions, most of the respondents sometimes have equal sharing of risks
and rewards. The decision style is decentralized as the different actors never coordinate decision
to be undertaken. The level of control of the respondents in business operation is low. Most of
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
JOVINIA SUBLA LUCAS/ 2011.

---

50

the buyers have their own comprehensive selection procedure of who the sellers they wanted to
transact with. However, only few actors/respondents have this mechanism in choosing the
buyers. Most of the respondents communicate and socialize with their buyers mainly for
business.
Conclusions

Based on the above findings, the researcher arrived at the following conclusions:

1. There are several chains of cabbage in the spot market. It always starts with the
farmers and ends with the consumers.

2. There is little operation and strategic resource sharing and information sharing among
the actors in the spot market chain of cabbage. There is unfair sharing of risks and benefits
among the actors. The actors decide on their own in their business operation. There is low level
of control of the actors in their business with the buyer. The chain actors do not select their
buyers and their communication to buyers is mainly for business.
Recommendations

Based on the conclusions drawn, the following are recommended:

1. Generally, for all actors to give more attention on risk and reward sharing. For the
actors to socialize more with their buyers, not just mainly for business, to gain trust and loyalty.

2. F-A-Ws to extend more support to the farmers especially on financial and other
operational resource. To set the level of control on the actors who extends credits.

3. Farmers to be well informed about the market information for the improvement on
their production schedule.

4. For the different group of respondents to have organizational affiliation related to
vegetable trading business for assistance and business improvement. Especially for farmers to
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
JOVINIA SUBLA LUCAS/ 2011.

---

51

have an organization preferably cooperative for a better production plan and strategy and to at
least cope with the unpredictable demand and supply of vegetables.

5. An analysis study on the impact of organizational affiliation or cooperative to the
improvement of the supply chain on the part of the farmer.



















Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
JOVINIA SUBLA LUCAS/ 2011.

---

52

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APPENDICES

APPENDIX A
Letter to the Respondents
Benguet State University
COLLEGE OF AGRICULTURE
La Trinidad, Benguet







November 2010
Sir/Madam,

The undersigned fourth year student taking up Bachelor of Science in Agribusiness
Management majoring in Enterprise Management at Benguet State University is conducting a
research entitled “COORDINATION MECHANISMS AND ATTRIBUTES BETWEEN
ACTORS IN THE SPOT MARKET CHAINS FOR CABBAGE”.

In this connection I’m soliciting your full cooperation by answering this questionnaire
honestly and completely. I assure you that your answers will be strictly confidential.

Your honest and complete response will make the study successful.

Thank you very much.









Very truly yours,










JOVINIA S. LUCAS









Researcher

Noted:

LEOPOLDO N. TAGARINO

Adviser
Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
JOVINIA SUBLA LUCAS/ 2011.

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APPENDIX B
Interview Schedule



This research aims to investigate the coordination mechanisms among the actors
in the spot market of cabbage. All information solicited will be treated with confidentiality.
Please answer the questions honestly by putting check mark [√] in the appropriate box provided
for. Thank you very much!
Respondent’s Name: __________________________
No. ______
Respondent’s Group:
1. Production Group:

[ ] Farmers





2. Assembly (Collection) Group : [ ] Assembler-Wholesaler




[ ] Financier-Assembler-Wholesaler




[ ] Financier-Assembler-Wholesaler-Retailer

3. Distribution Group :
[ ] Trucker-Wholesaler [ ] Wholesaler



[ ] Wholesaler-Retailer


4. Retailing Group :

[ ] Retailers

A. Respondent’s Profile

1. Age: _____
2. Gender: _____ Male _____ Female
3. Marital status: [ ] Single
[ ] Married
[ ] Separated
[ ] Widowed
4. Religion:
[ ] Catholic [ ] Protestant [ ] Others, specify_______________
5. Educational background: [ ] Elementary [ ] High School


[ ] College
[ ] Vocational
6. Number of years engage in vegetable business: _____
7. Organizational affiliation: [ ] Farmers’ Association [ ] Cooperatives

[
]
Others, specify ________
B. Who are the buyers of cabbage you produced/procured?
[ ] Assembler-Wholesalers [ ] Financier-Assembler-Wholesalers

[ ] Financier-Assembler-Wholesaler-Retailer

[ ] Trucker-Wholesalers [ ] Wholesalers [ ] Wholesaler-Retailers [ ] Retailers
C. Where do you sell the cabbage produced/procured?
[ ]La Trinidad Vegetable Trading Post [ ] Others, specify ____________________
[ ] Private Trading Center in La Trinidad, specify ____________________
[ ] Metro Manila, specify ____________________
D. COORDINATION MECHANISMS. Assess the coordination mechanismsadopted in
dealingwith the buyers of yourcabbage.
A. Resource Sharing Structure –how the buyer and the seller shareresourcessuch as information
and
capital in the business operation.




A.1.Operational Resource Sharing – resourcesshared are capital, facilities, equipment in the
business operation.















1 2 3 4 5
1. Buyer supports me for specific production/

procurementinvestments.

Strongly Disagree
StronglyAgree

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
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2. Weshareinvestment in production/

procurementoperation.
Strongly Disagree
StronglyAgree
3. I extend support to the buyer in our

businessoperation.

Strongly Disagree
StronglyAgree
4. The buyerextendcredit assistance in the
production/procurement of cabbage.
Strongly Disagree
StronglyAgree
A.2. Strategic Resource Sharing – the buyer and the seller make or plan for actions to achieve or
improvetheir goals.













1 2 3 4 5

1. The buyer and I jointlyshare production

and marketing strategies.

Strongly Disagree
StronglyAgree
2. We plan/makestrategies to improveour

businessoperation.


Strongly Disagree
StronglyAgree
A.3. Information Sharing – the buyer and the seller share marketing/ production information.






1 2 3 4 5
1. I share production/procurement information (volume,
cost, production schedules) to the buyers. Strongly Disagree
StronglyAgree
2. The buyeralwayssharemarket information
(demand, supply, prices&cost).

Strongly Disagree
StronglyAgree
3. Weshare information about production

and marketing schedules.

Strongly Disagree
StronglyAgree

B. Risk and Reward Sharing – the buyer and the seller sharerisk and reward sharing/
benefitsfairly or unfairly.















1 2 3 4 5
1. The buyer and I share the samerisksfrom

the transaction wemake.
Strongly Disagree
StronglyAgree
2. The buyer and I shareequalbenefitsfrom

the transaction wemake.
Strongly Disagree
StronglyAgree
3. I take more riskfrom the transaction I

makewithbuyers.


Strongly Disagree
StronglyAgree
4. The buyerderives more benefitsfrom the

businessoperation.


Strongly Disagree
StronglyAgree
C. Decision Style- how trheactorsdecide in theiroperation.



C.1. Centralized- one actor has primary control in theiroperation or buyer and seller jointly have
control.

















1 2 3 4 5
1. I decideatmyown about the business

operations.



Strongly Disagree
StronglyAgree
2. The buyerdictates the decision I

shouldundertake.


Strongly Disagree
StronglyAgree
3. The buyernever influences anydecision

I make.



Strongly Disagree
StronglyAgree
4. I am the one whodecides the volume to be
purchased.




Strongly Disagree
StronglyAgree

Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
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5. I choose the size/variety/color to be

procured.



Strongly Disagree
StronglyAgree
6. Wejointlysharedecision in procurement

anddeliveryschedules.

Strongly Disagree
StronglyAgree
C.2. Decentralized- the buyer and the seller have control or other party have control.








1 2 3 4 5
1. I involvedother people to decide for me in

sellingproducts and setting the price. Strongly Disagree
StronglyAgree
2. The buyer and I have ourowndecision.
Strongly Disagree
StronglyAgree
D. Level of Control- the buyeror the seller have high or low control.










1 2 3 4 5
1. I always monitor the buyer on the procurement/

production/marketing scedulesplanned. Strongly Disagree
StronglyAgree
2. I set rules in our business operation.
Strongly Disagree
StronglyAgree
3. The buyer sets rules in our business operation.Strongly Disagree
StronglyAgree
E. ComprehensiveSelectionProcedures














1 2 3 4 5
1. I select the buyerwhoistrustworthy.
Strongly Disagree
StronglyAgree
2. The buyerusuallychoose the sellerswith
goodquality and adequate volume of cabbage.Strongly Disagree
StronglyAgree
3. The buyerusuallychoose the sellersthat

offerlowerprice of cabbage.

Strongly Disagree
StronglyAgree
4. I choosebuyerswhom I know and
tradewith for a long, long time. Strongly Disagree
StronglyAgree
5. I choosebuyerswithadequateresources.
Strongly Disagree
StronglyAgree
6. The buyer must willinglysharemarket

Information.



Strongly Disagree
StronglyAgree
F. Socialization

F.1. Natural Socialization















1 2 3 4 5
1. The buyer and I have been tradingwith
thebuyer for long period of time.

Strongly Disagree
StronglyAgree
2. Weconstantlycommunicateinformally. Strongly Disagree
StronglyAgree
3. I have established close personal relationship

with the buyer of my cabbage.
Strongly Disagree
StronglyAgree
F.2. DeliberateSocialization



1 2 3 4 5
1. I transactwith the buyermainly for business.Strongly Disagree
StronglyAgree
2. I choose the buyerwith good reputation. Strongly Disagree
StronglyAgree

3. The buyer negotiates with me fairly.
Strongly Disagree
StronglyAgree




Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
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Coordination Mechanisms and Attributes Between Actors in the Spot Market Chains for Cabbage.
JOVINIA SUBLA LUCAS/ 2011.

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Document Outline

• Coordination Mechanisms and Attributes BetweenActors in the Spot Market Chains for Cabbage
  • BIBLIOGRAPHY
  • ABSTRACT
  • INTRODUCTION
  • REVIEW OF LITERATURE
  • METHODOLOGY
  • RESULTS AND DISCUSSION
  • SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
  • LITERATURE CITED
  • APPENDICES

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