IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v131y2023ics0264837723001424.html
   My bibliography  Save this article

Smallholder value creation in agrifood chains: Value network approach

Author

Listed:
  • Schoneveld, George C.
  • Weng, Xiaoxue

Abstract

To much of the development community, improving the inclusiveness of agrifood chains demands private institutional innovations that attenuate market failures confronting smallholders. How and how well such innovations contribute to sustainable rural development is still poorly understood, however, with research to date insufficiently generalizable to inform policy and practice. This partly stems from excessive reliance on instrumental and lead firm-centric perspectives on value creation that fail to recognize the complex organizational networks required to include, empower, and upgrade smallholders. To improve the explanatory capacity of existing theories and approaches, this article reconceptualizes how smallholders and other chain and non-chain actors derive value from participating in agrifood chains. Our ‘value networks’ inspired approach helps scholars and evaluators investigate and causally attribute how different types of value are created and captured through different types of private institutional innovations. We furthermore demonstrate how the approach can be used to generate the knowledge needed to advance business practice, development policy, and global value chain, global production network, and household theories.

Suggested Citation

  • Schoneveld, George C. & Weng, Xiaoxue, 2023. "Smallholder value creation in agrifood chains: Value network approach," Land Use Policy, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:lauspo:v:131:y:2023:i:c:s0264837723001424
    DOI: 10.1016/j.landusepol.2023.106676
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837723001424
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2023.106676?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schoneveld, George C., 2022. "Transforming food systems through inclusive agribusiness," World Development, Elsevier, vol. 158(C).
    2. Neil M Coe & Henry Wai-chung Yeung, 2019. "Global production networks: mapping recent conceptual developments," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 775-801.
    3. Bertrand Moingeon & Muhammad Yunus & Laurence Lehmann-Ortega, 2010. "Building Social Business Models: Lessons from the Grameen Experience," Post-Print hal-00528385, HAL.
    4. Lone Riisgaard & Simon Bolwig & Stefano Ponte & Andries du Toit & Niels Halberg & Frank Matose, 2010. "Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Strategic Framework and Practical Guide," Development Policy Review, Overseas Development Institute, vol. 28(2), pages 195-216, March.
    5. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    6. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    7. Sitko, Nicholas J. & Chamberlin, Jordan & Cunguara, Benedito & Muyanga, Milu & Mangisoni, Julius, 2017. "A comparative political economic analysis of maize sector policies in eastern and southern Africa," Food Policy, Elsevier, vol. 69(C), pages 243-255.
    8. Gary Gereffi & Joonkoo Lee, 2016. "Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters," Journal of Business Ethics, Springer, vol. 133(1), pages 25-38, January.
    9. Schoneveld, George Christoffel, 2014. "The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa," Food Policy, Elsevier, vol. 48(C), pages 34-50.
    10. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries - Selected hypotheses on nutritional implications," ESA Working Papers 288987, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    11. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    12. Claude Ménard & Wytse Vellema, 2020. "Inclusive Business Models in Agri-food Value Chains: What Safeguards for Whom?," Journal of African Business, Taylor & Francis Journals, vol. 21(3), pages 395-415, July.
    13. Walter, Achim & Auer, Michael & Ritter, Thomas, 2006. "The impact of network capabilities and entrepreneurial orientation on university spin-off performance," Journal of Business Venturing, Elsevier, vol. 21(4), pages 541-567, July.
    14. Christian Stadler & Constance E. Helfat & Gianmario Verona, 2013. "The Impact of Dynamic Capabilities on Resource Access and Development," Organization Science, INFORMS, vol. 24(6), pages 1782-1804, December.
    15. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    16. Chamberlain, Wytske & Anseeuw, Ward, 2019. "Inclusive businesses in agriculture: Defining the concept and its complex and evolving partnership structures in the field," Land Use Policy, Elsevier, vol. 83(C), pages 308-322.
    17. Simon Bolwig & Stefano Ponte & Andries du Toit & Lone Riisgaard & Niels Halberg, 2010. "Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Conceptual Framework," Development Policy Review, Overseas Development Institute, vol. 28(2), pages 173-194, March.
    18. Steve Wiggins, 2014. "African Agricultural Development: Lessons and Challenges," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 529-556, September.
    19. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914, Decembrie.
    20. Doris Fuchs & Agni Kalfagianni & Tetty Havinga, 2011. "Actors in private food governance: the legitimacy of retail standards and multistakeholder initiatives with civil society participation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(3), pages 353-367, September.
    21. Niels Fold, 2014. "Value Chain Dynamics, Settlement Trajectories and Regional Development," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 778-790, May.
    22. Carole Rakodi, 1999. "A Capital Assets Framework for Analysing Household Livelihood Strategies: Implications for Policy," Development Policy Review, Overseas Development Institute, vol. 17(3), pages 315-342, September.
    23. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    24. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    25. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
    26. Fabrizio Cafaggi & Katharina Pistor, 2015. "Regulatory capabilities: A normative framework for assessing the distributional effects of regulation," Regulation & Governance, John Wiley & Sons, vol. 9(2), pages 95-107, June.
    27. Jantunen, Ari & Ellonen, Hanna-Kaisa & Johansson, Anette, 2012. "Beyond appearances – Do dynamic capabilities of innovative firms actually differ?," European Management Journal, Elsevier, vol. 30(2), pages 141-155.
    28. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2004. "A Policy Agenda for Pro-Poor Agricultural Growth," World Development, Elsevier, vol. 32(1), pages 73-89, January.
    29. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    30. Valentina De Marchi & Eleonora Di Maria & Stefano Micelli, 2013. "Environmental Strategies, Upgrading and Competitive Advantage in Global Value Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 22(1), pages 62-72, January.
    31. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    32. 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.
    33. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    34. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    35. Jeff Neilson & Bill Pritchard & Niels Fold & Angga Dwiartama, 2018. "Lead Firms in the Cocoa–Chocolate Global Production Network: An Assessment of the Deductive Capabilities of GPN 2.0," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 400-424, August.
    36. W.O. Chamberlain & W. Anseeuw, 2017. "Contract Farming as Part of a Multi-Instrument Inclusive Business Structure: A Theoretical Analysis," Agrekon, Taylor & Francis Journals, vol. 56(2), pages 158-172, April.
    37. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    38. Nelson, Richard R & Winter, Sidney G, 1982. "The Schumpeterian Tradeoff Revisited," American Economic Review, American Economic Association, vol. 72(1), pages 114-132, March.
    39. Aisha Dasgupta & Angela Baschieri, 2010. "Vulnerability to climate change in rural Ghana: Mainstreaming climate change in poverty-reduction strategies," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(6), pages 803-820.
    40. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    41. Bebbington, Anthony, 1999. "Capitals and Capabilities: A Framework for Analyzing Peasant Viability, Rural Livelihoods and Poverty," World Development, Elsevier, vol. 27(12), pages 2021-2044, December.
    42. Stefano Ponte & Timothy Sturgeon, 2014. "Explaining governance in global value chains: A modular theory-building effort," Review of International Political Economy, Taylor & Francis Journals, vol. 21(1), pages 195-223, February.
    43. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    44. Mark Vicol & Niels Fold & Bill Pritchard & Jeffrey Neilson, 2019. "Global production networks, regional development trajectories and smallholder livelihoods in the Global South," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 973-993.
    Full references (including those not matched with items on IDEAS)

    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. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    2. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    3. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    4. Celina Schelle & Benno Pokorny, 2021. "How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    5. Viet Hoang, 2021. "Impact of Contract Farming on Farmers’ Income in the Food Value Chain: A Theoretical Analysis and Empirical Study in Vietnam," Agriculture, MDPI, vol. 11(8), pages 1-16, August.
    6. Ruml, Anette & Qaim, Matin, 2020. "Effects of marketing contracts and resource-providing contracts in the African small farm sector: Insights from oil palm production in Ghana," World Development, Elsevier, vol. 136(C).
    7. Golini, Ruggero & De Marchi, Valentina & Boffelli, Albachiara & Kalchschmidt, Matteo, 2018. "Which governance structures drive economic, environmental, and social upgrading? A quantitative analysis in the assembly industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 13-23.
    8. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    9. Xinyu Yang & Weidong Liu, 2022. "Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review," Land, MDPI, vol. 11(10), pages 1-14, October.
    10. Tolentino-Zondervan, Frazen & Berentsen, Paul & Bush, Simon & Idemne, Joseph & Babaran, Ricardo & Lansink, Alfons Oude, 2016. "Comparison of Private Incentive Mechanisms for Improving Sustainability of Filipino Tuna Fisheries," World Development, Elsevier, vol. 83(C), pages 264-279.
    11. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
    12. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    13. Johanna Gammelgaard & Stine Haakonsson & Sine Nørholm Just, 2021. "Linking Malawi’s agricultural sector to global value chains: The case for community governance," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 523-540, December.
    14. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    15. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.
    16. Marlenne G. Velazquez-Cazares & Anna M. Gil-Lafuente & Ernesto Leon-Castro & Fabio Blanco-Mesa, 2021. "Innovation capabilities measurement using fuzzy methodologies: a Colombian SMEs case," Computational and Mathematical Organization Theory, Springer, vol. 27(4), pages 384-413, December.
    17. Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).
    18. Ilgaz Arikan & Ipek Koparan & Asli M Arikan & Oded Shenkar, 2022. "Dynamic capabilities and internationalization of authentic firms: Role of heritage assets, administrative heritage, and signature processes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 601-635, June.
    19. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    20. Florian Hofmann & Dodo zu Knyphausen‐Aufseß, 2022. "Circular business model experimentation capabilities—A case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2469-2488, July.

    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:eee:lauspo:v:131:y:2023:i:c:s0264837723001424. 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: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    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.