Measuring relationship marketing effect in small-scale fishing in Oman and enhancing efficiency and economic gains for traditional fishermen

Abstract

This paper aims to measure the effect of relationship marketing and supply chain management practices on small-scale fishermen's incomes on the Batinah coast of the Sultanate of Oman. The study also assesses the potential effects of relevant socio-economic, demographic, and fishing operation related factors on the competitiveness of small-scale fishermen. A field survey was conducted to elicit views of fishermen using two types of questionnaires- one for those fishermen who were engaged in relationship marketing with a preferred buyer, and the other for those fishermen who were not engaged in relationship marketing. Two factor analyses were conducted with respect to relationship marketing between the fishermen and their preferred buyer and with respect to the supply chain management practices. Further empirical analyses were conducted that involved three main steps. First, the residual from the logistic regression model carried out in a recently published study was computed, where this residual represents the unpredictable component of the fishermen's income. Second, an independent sample t-test was performed to determine any significant differences between the two groups with regard to some relevant variables. Third, the two-stage Heckman procedure was conducted, in which during the first stage the Inverse Mills Ratio (IMR) was computed using the probit model. In the second stage of the Heckman procedure, the residual of the logistic regression (obtained in the first step) was regressed on the IMR and other predictors of relationship marketing related to the fishermen who were engaged in relationship marketing. Our key finding is that the fishermen who are engaged in relationship marketing and adopt practices of supply chain management have a comparatively higher income and competitive advantage over those who are not engaged in relationship marketing. Therefore, there is a need for strengthening relationships between fishermen and supply chain actors. We hope that the finding will be useful for future planning of the small-scale fisheries in the Batinah Governorates.