Determinants of Collaborative Negotiation Style on Agribusiness Performance of High Value Food Crop Products in Tanzania: Evidence from Middlemen in Arusha

Abstract

This paper explored the role of collaborative negotiation style in agribusiness food value addition in Tanzania with insights from Arusha city. The data were collected from a cross-sectional survey of 280 middlemen who trade on high value crops with perishable nature in Arusha main markets. A multiple regression analysis was conducted to determined main factors contributing to collaborative negotiation style but also on their disaggregated effect on agribusiness performance. The results showed that collaborative negotiation style through satisfaction, assertiveness, solution and communality had a positive effect on agribusiness performance on (ϼ< 0.05). The model has high concern for self and high concern for others; this created a good environment for the perpetual transaction of the high value products since each of the negotiating part’s interest has been considered. The high concern for others as well as high self-concern has been founded to add positive performance on high value products and made it to be one of the important negotiation models with positive impact on the agribusiness performance. The model found to be suitable on high value food crops. The perishable nature of high value food crops made collaborative negotiation style being suitable as the risk are reduced by middlemen involvement on the value chain process.