IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/230835.html
   My bibliography  Save this article

Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise

Author

Listed:
  • Sjauw-Koen-Fa, August R.
  • Blok, Vincent
  • Omta, S.W.F. (Onno)

Abstract

Food and Agribusiness Multinational Enterprises (F&A MNEs) increasingly wish to source from smallholders to secure and stabilize the supply of agricultural commodities in high value-adding supply chains, while contributing positively to smallholder livelihood. In the literature we found that many F&A MNEs have been involved in supporting smallholder farming systems in developing countries for a long time. However, these projects have principally been driven by Corporate Social Responsibility (CSR) strategies. Moreover, despite many pilots to include smallholders in high value-adding supply chains, scaling or scaling up successful pilots has so far proven elusive. The aim of the present article is to identify the critical success factors (CSFs) that can help F&A MNEs to design and implement sourcing strategies for sustainable smallholder supply from a business perspective, and to scale up successful pilot projects from a business perspective.

Suggested Citation

  • Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.
    • Handle: RePEc:ags:ifaamr:230835
    DOI: 10.22004/ag.econ.230835
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/230835/files/520150029.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.230835?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
    2. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    3. Kindie GETNET & Tsegaye ANULLO, 2012. "Agricultural Cooperatives And Rural Livelihoods: Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(2), pages 181-198, June.
    4. Julia Rotter & Peppi-Emilia Airike & Cecilia Mark-Herbert, 2014. "Exploring Political Corporate Social Responsibility in Global Supply Chains," Journal of Business Ethics, Springer, vol. 125(4), pages 581-599, December.
    5. Giovannucci, Daniele & Ponte, Stefano, 2005. "Standards as a new form of social contract? Sustainability initiatives in the coffee industry," Food Policy, Elsevier, vol. 30(3), pages 284-301, June.
    6. Aneel Karnani, 2006. "Mirage at the Bottom of the Pyramid," William Davidson Institute Working Papers Series wp835, William Davidson Institute at the University of Michigan.
    7. Humphrey, John,, 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    8. Rivera-Santos, Miguel & Rufín, Carlos & Kolk, Ans, 2012. "Bridging the institutional divide: Partnerships in subsistence markets," Journal of Business Research, Elsevier, vol. 65(12), pages 1721-1727.
    9. Onumah, Gideon & Davis, Junior & Kleih, Ulrich & Proctor, Felicity, 2007. "Empowering Smallholder Farmers in Markets: Changing agricultural marketing systems and innovative responses by producer organizations," MPRA Paper 25984, University Library of Munich, Germany.
    10. François Perrot, 2013. "Organizational Challenges of Multinational Corporations at the Base of the Pyramid: An Action-research Inquiry," Working Papers hal-00771299, HAL.
    11. Maimbo, Samuel & Saranga, Tania & Strychacz, Nicholas, 2010. "Facilitating Cross-Border Mobile Banking in Southern Africa," World Bank - Economic Premise, The World Bank, issue 26, pages 1-5, August.
    12. Reimann, Felix & Ehrgott, Matthias & Kaufmann, Lutz & Carter, Craig R., 2012. "Local stakeholders and local legitimacy: MNEs' social strategies in emerging economies," Journal of International Management, Elsevier, vol. 18(1), pages 1-17.
    13. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    14. Miguel Rivera-Santos & Carlos Rufin & Ans Kolk, 2012. "Bridging the institutional divide : Partnerships in subsistence markets," Post-Print hal-02313074, HAL.
    15. Blok, Vincent & Sjauw-Koen-Fa, August & Omta, Onno, 2013. "Effective Stakeholder Involvement at the Base of the Pyramid: The Case of Rabobank," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(A), pages 1-6.
    16. Wiggins, Steve & Kirsten, Johann & Llambí, Luis, 2010. "The Future of Small Farms," World Development, Elsevier, vol. 38(10), pages 1341-1348, October.
    17. London, Ted & Anupindi, Ravi & Sheth, Sateen, 2010. "Creating mutual value: Lessons learned from ventures serving base of the pyramid producers," Journal of Business Research, Elsevier, vol. 63(6), pages 582-594, June.
    18. Samuel Maimbo & Tania Saranga & Nicholas Strychacz, 2010. "Facilitating Cross-Border Mobile Banking in Southern Africa," World Bank Publications - Reports 10163, The World Bank Group.
    19. Spekman, Robert E., 1988. "Strategic supplier selection: Understanding long-term buyer relationships," Business Horizons, Elsevier, vol. 31(4), pages 75-81.
    20. Stephanie BARRIENTOS & Gary GEREFFI & Arianna ROSSI, 2011. "Economic and social upgrading in global production networks: A new paradigm for a changing world," International Labour Review, International Labour Organization, vol. 150(3-4), pages 319-340, December.
    21. Bitzer, Verena, 2012. "Partnering for Change in Chains: the Capacity of Partnerships to Promote Sustainable Change in Global Agrifood Chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(B), pages 1-25, December.
    22. World Bank, 2007. "Providing Financial Services in Rural Areas : A Fresh Look at Financial Cooperatives," World Bank Publications - Reports 7935, The World Bank Group.
    23. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    24. Homi Kharas, 2010. "The Emerging Middle Class in Developing Countries," OECD Development Centre Working Papers 285, OECD Publishing.
    25. Driedonks, Boudewijn A. & Gevers, Josette M.P. & van Weele, Arjan J., 2014. "Success factors for sourcing teams: How to foster sourcing team effectiveness," European Management Journal, Elsevier, vol. 32(2), pages 288-304.
    26. Maignan, Isabelle & Hillebrand, Bas & McAlister, Debbie, 2002. "Managing Socially-Responsible Buying:: How to Integrate Non-economic Criteria into the Purchasing Process," European Management Journal, Elsevier, vol. 20(6), pages 641-648, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roman Vavrek & Ivana Kravčáková Vozárová & Rastislav Kotulič, 2021. "Evaluating the Financial Health of Agricultural Enterprises in the Conditions of the Slovak Republic Using Bankruptcy Models," Agriculture, MDPI, vol. 11(3), pages 1-19, March.
    2. Dwi Ratna Hidayati & Elena Garnevska & Paul Childerhouse, 2021. "Sustainable Agrifood Value Chain—Transformation in Developing Countries," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    3. Oyediran O. Oyebola & Jackson Efitre & Laban Musinguzi & Augustine E. Falaye, 2021. "Potential adaptation strategies for climate change impact among flood-prone fish farmers in climate hotspot Uganda," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 12761-12790, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sjauw-Koen-Fa, August R. & Omta, S.W.F. (Onno) & Blok, Vincent, 2018. "Constructing a Multinationals’ Inclusive Sourcing Indicator for Impacting Farmer Business Models: Application in Cocoa Cases," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(3), June.
    2. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    3. Debapriya Bhattacharya & Khondaker Golam Moazzem, 2013. "Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges," CPD Working Paper 104, Centre for Policy Dialogue (CPD).
    4. Fu, Xiaolan & Ghauri, Pervez & Ogbonna, Nwamaka & Xing, Xiaoqiang, 2023. "Platform-based business model and entrepreneurs from Base of the Pyramid," Technovation, Elsevier, vol. 119(C).
    5. Kumar, Avinash & Kumra, Rajeev & Singh, Ramendra, 2022. "Base of the pyramid producers’ constraints: An integrated review and research agenda," Journal of Business Research, Elsevier, vol. 140(C), pages 115-129.
    6. Oyediran O. Oyebola & Jackson Efitre & Laban Musinguzi & Augustine E. Falaye, 2021. "Potential adaptation strategies for climate change impact among flood-prone fish farmers in climate hotspot Uganda," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 12761-12790, September.
    7. Altenburg, Tilman & Kulke, Elmar & Reeg, Caroline & Peterskovsky, Lisa & Hampel-Milagrosa, Aimée, 2016. "Making retail modernisation in developing countries inclusive: a development policy perspective," IDOS Discussion Papers 2/2016, German Institute of Development and Sustainability (IDOS).
    8. Kelsey M. Taylor & Eugenia Rosca, 2023. "Sink, swim, or drift: How social enterprises use supply chain social capital to balance tensions between impact and viability," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(2), pages 62-86, April.
    9. Tassilo Schuster & Dirk Holtbrügge, 2014. "Benefits of Cross‐sector Partnerships in Markets at the Base of the Pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 188-203, March.
    10. Vicol, Mark & Neilson, Jeffrey & Hartatri, Diany Faila Sophia & Cooper, Peter, 2018. "Upgrading for whom? Relationship coffee, value chain interventions and rural development in Indonesia," World Development, Elsevier, vol. 110(C), pages 26-37.
    11. Kostka Genia & Zhou Jianghua, 2013. "Government-business alliances in state capitalist economies: evidence from low-income markets in China," Business and Politics, De Gruyter, vol. 15(2), pages 245-274, August.
    12. Addisu A. Lashitew & Somendra Narayan & Eugenia Rosca & Lydia Bals, 2022. "Creating Social Value for the ‘Base of the Pyramid’: An Integrative Review and Research Agenda," Journal of Business Ethics, Springer, vol. 178(2), pages 445-466, June.
    13. Barnard, Helena, 2021. "Host countries' level of development and internationalization from emerging markets: A typology of firm strategies," Journal of International Management, Elsevier, vol. 27(3).
    14. Marion Werner & Jennifer Bair & Victor Ramiro Fernández, 2014. "Linking Up to Development? Global Value Chains and the Making of a Post-Washington Consensus," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1219-1247, November.
    15. Islam, Mohammad Tarikul & Polonsky, Michael Jay, 2020. "Validating scales for economic upgrading in global value chains and assessing the impact of upgrading on supplier firms’ performance," Journal of Business Research, Elsevier, vol. 110(C), pages 144-159.
    16. Stephanie Schrage & Dirk Ulrich Gilbert, 2021. "Addressing Governance Gaps in Global Value Chains: Introducing a Systematic Typology," Journal of Business Ethics, Springer, vol. 170(4), pages 657-672, May.
    17. Mark Alan Heuer & Usman Khalid & Stefan Seuring, 2020. "Bottoms up: Delivering sustainable value in the base of the pyramid," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1605-1616, March.
    18. Thomas Bernhardt, 2013. "Developing countries in the global apparel value chain: a tale of upgrading and downgrading experiences," Global Development Institute Working Paper Series ctg-2013-22, GDI, The University of Manchester.
    19. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    20. Fredrick Bagamba & Proscovia R. Ntakyo & Geoffrey Otim & David J. Spielman & Bjorn Van Campenhout, 2023. "Policy and performance in Uganda's seed sector: Opportunities and challenges," Development Policy Review, Overseas Development Institute, vol. 41(3), May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:230835. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.