Determinants of sustainable business relationships in selected German agri‐food chains

Purpose – The purpose of this paper is to identify factors which influence the sustainability of selected German agri‐food chains.Design/methodology/approach – The paper is composed of a literature review, qualitative and quantitative expert interviews, and structural equation modelling.Findings – Effective communication, the existence of personal bonds and equal power distribution between buyers and suppliers are key determinants of sustainable vertical business relationships. The relevance and significance of the determinants differ across the investigated chain stages (farmer‐processor versus processor‐retailer), the use of formal versus non‐formal relationship types and the maturity of a relationship.Research limitations/implications – Further research needs to empirically apply the analysis to agri‐food chains other than the investigated pig‐meat and cereal ones.Practical implications – Agribusiness and farm managers can enhance the sustainability of their business relationships by effective communic...

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