IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i22p12680-d680518.html
   My bibliography  Save this article

Contract Farming towards Social Business: A New Paradigm

Author

Listed:
  • Iffat Abbas Abbasi

    (Department of Management and Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Perak, Malaysia)

  • Hasbullah Ashari

    (Department of Management and Humanities, Universiti Teknologi PETRONAS, Seri Iskandar 32610, Perak, Malaysia)

  • Amin Jan

    (Faculty of Hospitality, Tourism and Wellness. Universiti Malaysia Kelantan, City Campus, Pengkalan Chepa 16100, Kelantan, Malaysia)

  • Ahmad Shabudin Ariffin

    (Department of Management Sciences, Kolej Universiti Islam Perlis (KUIPs), Kuala Perlis 02000, Perlis, Malaysia)

Abstract

The current paper conceptualises an innovative, sustainable social business contract farming model by blending three essential business aspects, namely, relational norms, social capital, and social business dimensions. In the case of contract farming, evidence shows that the social aspect and social business-based contract farming model are over-sighted. This study offers an efficient social business contract farming model by, first, reviewing the conventional contract farming model and, secondly, by developing and proposing a robust, multidimensional model for contract farming. This proposed framework may have profound implications for the agriculture sector and may provide a strong sustainable contract farming management guideline for the global agriculture industry.

Suggested Citation

  • Iffat Abbas Abbasi & Hasbullah Ashari & Amin Jan & Ahmad Shabudin Ariffin, 2021. "Contract Farming towards Social Business: A New Paradigm," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12680-:d:680518
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/22/12680/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/22/12680/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Porter, Gina & Phillips-Howard[malt], Kevin, 1997. "Comparing contracts: An evaluation of contract farming schemes in Africa," World Development, Elsevier, vol. 25(2), pages 227-238, February.
    2. 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.
    3. Haki Pamuk & Erwin Bulte & Adewale Adekunle & Aliou Diagne, 2015. "Editor's choice Decentralised innovation systems and poverty reduction: experimental evidence from Central Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(1), pages 99-127.
    4. Weerawardena, Jay & Mort, Gillian Sullivan, 2006. "Investigating social entrepreneurship: A multidimensional model," Journal of World Business, Elsevier, vol. 41(1), pages 21-35, February.
    5. Huo, Baofeng & Fu, Dijia & Zhao, Xiande & Zhu, Jingwen, 2016. "Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract," International Journal of Production Economics, Elsevier, vol. 182(C), pages 293-303.
    6. 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.
    7. Sungmin Kang & Youn Kue Na, 2018. "The Effect of the Relationship Characteristics and Social Capital of the Sharing Economy Business on the Social Network, Relationship Competitive Advantage, and Continuance Commitment," Sustainability, MDPI, vol. 10(7), pages 1-22, June.
    8. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    9. Pérez-Luño, Ana & Cabello Medina, Carmen & Carmona Lavado, Antonio & Cuevas Rodríguez, Gloria, 2011. "How social capital and knowledge affect innovation," Journal of Business Research, Elsevier, vol. 64(12), pages 1369-1376.
    10. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    11. Anette Ruml & Matin Qaim, 2021. "Smallholder Farmers’ Dissatisfaction with Contract Schemes in Spite of Economic Benefits: Issues of Mistrust and Lack of Transparency," Journal of Development Studies, Taylor & Francis Journals, vol. 57(7), pages 1106-1119, July.
    12. Laura Michelini & Daniela Fiorentino, 2012. "New business models for creating shared value," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 8(4), pages 561-577, September.
    13. Christian Bjørnskov & Kim Sønderskov, 2013. "Is Social Capital a Good Concept?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1225-1242, December.
    14. Christoph Saenger & Maximo Torero & Matin Qaim, 2014. "Impact of Third-party Contract Enforcement in Agricultural Markets-A Field Experiment in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1220-1238.
    15. Benjamin Feigenberg & Erica Field & Rohini Pande, 2013. "The Economic Returns to Social Interaction: Experimental Evidence from Microfinance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1459-1483.
    16. Perry, Martin K., 1989. "Vertical integration: Determinants and effects," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 4, pages 183-255, Elsevier.
    17. Deb, Rahul & Suri, Tavneet, 2013. "Endogenous emergence of credit markets: Contracting in response to a new technology in Ghana," Journal of Development Economics, Elsevier, vol. 101(C), pages 268-283.
    18. Eko Ruddy Cahyadi & Hermann Waibel, 2016. "Contract Farming and Vulnerability to Poverty among Oil Palm Smallholders in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(5), pages 681-695, May.
    19. Rehber, Erkan, 2007. "Contract Farming: Theory and Practice," Monographs: Applied Economics, AgEcon Search, number 259070, July.
    20. Fischer, Sabine & Wollni, Meike, 2018. "The role of farmers’ trust, risk and time preferences for contract choices: Experimental evidence from the Ghanaian pineapple sector," Food Policy, Elsevier, vol. 81(C), pages 67-81.
    21. Jeffrey D. Michler & Steven Y. Wu, 2020. "Relational Contracts in Agriculture: Theory and Evidence," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 111-127, October.
    22. Castañeda, Andrés & Doan, Dung & Newhouse, David & Nguyen, Minh Cong & Uematsu, Hiroki & Azevedo, João Pedro, 2018. "A New Profile of the Global Poor," World Development, Elsevier, vol. 101(C), pages 250-267.
    23. M. Tina Dacin & Peter A. Dacin & Paul Tracey, 2011. "Social Entrepreneurship: A Critique and Future Directions," Organization Science, INFORMS, vol. 22(5), pages 1203-1213, October.
    24. Klaus Drescher, 2000. "Assessing aspects of agricultural contracts: An application to German agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 16(4), pages 385-398.
    25. Keith Blois, 2002. "Business To Business Exchanges: A Rich Descriptive Apparatus Derived From Macneil’s and Menger’s Analyses," Journal of Management Studies, Wiley Blackwell, vol. 39(4), pages 523-551, June.
    26. Kozhaya, Rodrique, 2020. "A systematic review of contract farming and it's impacts on broiler producers in Lebanon," MPRA Paper 99369, University Library of Munich, Germany.
    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. Junjin Chen & Hong Zhou, 2023. "The Role of Contract Farming in Green Smart Agricultural Technology," Sustainability, MDPI, vol. 15(13), pages 1-14, July.
    2. Iffat Abbas Abbasi & Hasbullah Ashari & Ahmad Shabudin Ariffin & Ijaz Yusuf, 2023. "Farm to Fork: Indigenous Chicken Value Chain Modelling Using System Dynamics Approach," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    3. Arbianti, Arbianti & Rahayu, Endang Siti & Sutrisno, Joko, 2023. "Multidimensional poverty of cassava farm households in Wonogiri Regency, Indonesia," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.

    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. George Malindretos & Eleni Sardianou & Maria Briana, 2023. "Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    3. 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).
    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 & 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.
    6. Biggeri, Mario & Carraro, Alessandro & Ciani, Federico & Romano, Donato, 2022. "Disentangling the impact of a multiple-component project on SDG dimensions: The case of durum wheat value chain development in Oromia (Ethiopia)," World Development, Elsevier, vol. 153(C).
    7. Mai Chiem Tuyen & Prapinwadee Sirisupluxana & Isriya Bunyasiri & Pham Xuan Hung, 2022. "Stakeholders’ Preferences towards Contract Attributes: Evidence from Rice Production in Vietnam," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    8. 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.
    9. Elizabeth Eldridge & Marie-Eve Rancourt & Ann Langley & Dani Héroux, 2022. "Expanding Perspectives on the Poverty Trap for Smallholder Farmers in Tanzania: The Role of Rural Input Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-34, April.
    10. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin Dsouza, 2022. "Monopsonists, Disruptive Innovation and Food Security: The Case of High‐Value Commodity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 460-476, March.
    11. Ayeduvor Selorm & D. B. S. Sarpong & Irene S. Egyir & Akwasi Mensah Bonsu & Henry An, 2023. "Does contract farming affect technical efficiency? Evidence from soybean farmers in Northern Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-22, December.
    12. 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).
    13. 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.
    14. Oreoluwa Ola & Luisa Menapace, 2020. "Revisiting constraints to smallholder participation in high‐value markets: A best‐worst scaling approach," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 595-608, July.
    15. Anette Ruml & Catherine Ragasa & Matin Qaim, 2022. "Contract farming, contract design and smallholder livelihoods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 24-43, January.
    16. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    17. Inmaculada Buendía-Martínez & Inmaculada Carrasco Monteagudo, 2020. "The Role of CSR on Social Entrepreneurship: An International Analysis," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    18. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    19. I Wayan Ruspendi Junaedi & I Wayan Damayana & Dermawan Waruwu & I Gusti Bagus Rai Utama, 2020. "Social Enterprises through Traditional Cooperation: Love, Joint Responsibility, Portfolio, and Wellbeing," Technium Social Sciences Journal, Technium Science, vol. 12(1), pages 333-346, October.
    20. Ashish Aman Sinha & Hari Charan Behera & Ajit Kumar Behura & Braja Bandhu Swain, 2021. "Land Allocation Choice in Both Contract and Non-Contract Farming: A Study of Potato Growers in West Bengal, India," SAGE Open, , vol. 11(3), pages 21582440211, September.

    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:gam:jsusta:v:13:y:2021:i:22:p:12680-:d:680518. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.