The paper analyses small and medium firms' perceptions on contract enforcement along food chain in central region of Hungary using survey data. We find that 59 per cent of respondents believe that they could use court to enforce contracts with their partner. However we do not find significant differences along food chain. Our estimations suggest that contractual specificity and firm attributes, external linkages, efficiency of legal systems factors, buyer and seller specifc factors significantly influence the opinion on contract enforcement. Interestingly, the impact of branch specific characteristics has, no impacts. Acceptance of financial loss can be explained by contractual specificity, external linkages, efficiency of legal systems. Buyer, seller and industry characteristics has not played role in the explanation of financial losses.
contract enforcement small and medium size enterprises agri-food chain