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Type: Thesis
Title: An analysis of transaction costs and governance structures of artisan tuna fisheries in East Java, Indonesia.
Author: Satria, Dias
Issue Date: 2015
School/Discipline: School of Agriculture, Food and Wine
Abstract: This study examines transaction costs and the contract relationship formed by artisan fishermen (AFs) in the artisan tuna fishing economies (ATFEs) in East Java, Indonesia. More specifically, this study investigates: (a) the various types of governance structures in ATFEs; (b) the roles of the key actors in the marketing value chain; (c) contracts and relationships; (d) transaction characteristics; (e) the importance of risk behaviour; (f) factors affecting transaction costs in AFTEs; and (g) the role of trust in contract fishing. This study used a combination of both qualitative and quantitative approaches, which is known as a mixed methods approach. A qualitative approach was applied to gain better understanding of the application of the transaction costs economics (TCE) framework in the context of contract fishing. Further to this, a quantitative approach was employed to examine factors influencing AFs to engage in the contract relationship, as well as to investigate factors affecting transaction costs. The mixed method approach is applied to gain a holistic understanding about the marketing value chain in artisan tuna fishing economies The survey study, which involved 440 AFs, from December 2012 to February 2013, in five sample areas, namely Malang, Pacitan, Trenggalek, Banyuwangi and Jember, reveals that AFs who entered into fishing contracts with middlemen had a higher level of human specificity and conducted transactions more frequently than those who did not. Additionally, AFs who did not have contracts with the middlemen were also found to be risk takers. Lastly, it was found that AFs who did not have contracts with the middlemen faced a higher level of uncertainty than those who did. A Probit model was used to examine factors influencing the AFs to engage in a contract relationship with the middlemen. The results indicate that a higher level of uncertainty tends to decrease the motivation of AFs to engage in a contract relationship as uncertainty creates bigger profit opportunities for the AFs and thus increases their motivation to avoid contract relationships. Structural equation modelling is used to examine factors affecting transaction costs. The results show that trust has a role in limiting opportunistic behaviour, allowing AFs to adopt a less complicated safeguard, thereby economising on transaction costs. Furthermore, uncertainty has a significant effect on the transaction costs, as uncertainty increases the need for safeguarding (i.e. evaluating and monitoring the contract agreement) which, in turn, affects the level of transaction costs. The findings show the importance of trust and transaction characteristics affecting transaction costs and AFs’ motivation in the contract choice. Policy support in the artisan tuna fisheries industry should put a greater focus on the major transaction costs in the contract relationship formed by the AFs and the middlemen. Such policy support would help in strengthening the marketing value chain to become more sustainable, efficient and commercially viable, benefiting all the key actors in the tuna industry’s value chain.
Advisor: Li, Elton
Gyau, Amos
Brindal, Mark Kennion
Dissertation Note: Thesis (Ph.D.) -- University of Adelaide, School of Agriculture, Food and Wine, 2015
Keywords: artisan fishermen; marketing value chain; governance structure; transaction cost economics; transaction characteristics
Provenance: This electronic version is made publicly available by the University of Adelaide in accordance with its open access policy for student theses. Copyright in this thesis remains with the author. This thesis may incorporate third party material which has been used by the author pursuant to Fair Dealing exceptions. If you are the owner of any included third party copyright material you wish to be removed from this electronic version, please complete the take down form located at:
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