IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v4y2017i1p1299603.html
   My bibliography  Save this article

All because of competition: A bane or blessing for smaller licence buying companies (LBCs) of the Ghanaian cocoa industry

Author

Listed:
  • Goodlet Owusu Ansah
  • Isaac Antwi
  • Lawrencia Pokuah Siaw

Abstract

The dynamic global market in the world of business forces firms to initiate quick and favourable actions in order to stay active in this ever-changing world of business. The study investigated the post liberalization and privatization effect of competition on smaller Licensed Buying Companies (LBCs) in the Ghanaian Cocoa industry using the Kuapa Kokoo Limited’ (KKL) situation. The study also sought to unravel the nature of competition and challenges stemming from the competition among LBCs. The study utilized the Herfindahl–Hirschman Indexes and the K-concentration ratio to examine the nature of competition in the industry. Responses were gathered from one hundred and twenty-three (N = 123) employees of KKL. The study revealed that, competition exists in the cocoa industry but is greatly controlled by LBCs with larger market shares and that out of this emanate threats for smaller LBCs in the cocoa industry. The study indicated that major challenges stemming from the competition included unfair influence by LBCs, bamboozlement of smaller LBCs by well-established bigger LBCs, breach of agreements between LBCs and farmers etc. It is therefore recommended that the present cocoa purchasing regulations be adequately enforced to better control the effects of unhealthy competitions in the internal market of the cocoa industry.

Suggested Citation

  • Goodlet Owusu Ansah & Isaac Antwi & Lawrencia Pokuah Siaw, 2017. "All because of competition: A bane or blessing for smaller licence buying companies (LBCs) of the Ghanaian cocoa industry," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1299603-129, January.
    • Handle: RePEc:taf:oabmxx:v:4:y:2017:i:1:p:1299603
    DOI: 10.1080/23311975.2017.1299603
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2017.1299603
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2017.1299603?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. Vigneri, Marcella & Santos, Paulo, 2008. "What does liberalization without price competition achieve?: The case of cocoa in Ghana," GSSP working papers 14, International Food Policy Research Institute (IFPRI).
    2. Timothy Besley, 1997. "Monopsony and Time–Consistency: Sustainable Pricing Policies for Perennial Crops," Review of Development Economics, Wiley Blackwell, vol. 1(1), pages 57-70, February.
    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. Ollendorf, Franziska & Sieber, Stefan & Löhr, Katharina, 2023. "Societal dynamics of sustainability certification in Ghanaian cocoa producing communities: Assessing social cohesion effects and their implications for collective action," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(2), pages 212-238.

    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. Margaret S. McMillan, 1999. "Foreign Direct Investment: Leader or Follower?," Discussion Papers Series, Department of Economics, Tufts University 9901, Department of Economics, Tufts University.
    2. Willian A Masters and Margaret S McMillan, 2000. "Africa’s growth trap: a political-economy model of taxation, R&D and investment," Economics Series Working Papers WPS/2000-14, University of Oxford, Department of Economics.
    3. Jean Paul Azam & Robert Bates & Bruno Biais, 2009. "Political Predation And Economic Development," Economics and Politics, Wiley Blackwell, vol. 21(2), pages 255-277, July.
    4. Kala Krishna, 1998. "The adding up problem: a targeting approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(2), pages 151-173.
    5. John McLaren, 2003. "Institutional Elements of Tax Design and Reform," World Bank Publications - Books, The World Bank Group, number 15170, December.
    6. Margaret S. McMillan & William A. Masters, 2000. "Africa's Growth Trap: A Political-Economy Model of Taxation, R&D and Investment," CID Working Papers 50A, Center for International Development at Harvard University.
    7. Kolavalli, Shashidhara & Vigneri, Marcella & Maamah, Haruna & Poku, John, 2012. "The partially liberalized cocoa sector in Ghana: Producer price determination, quality control, and service provision," IFPRI discussion papers 1213, International Food Policy Research Institute (IFPRI).
    8. Schiff, Maurice, 1994. "Commodity exports and the adding up problem in developing countries : trade, investment, and lending policy," Policy Research Working Paper Series 1338, The World Bank.
    9. Vigneri, Marcella & Santos, Paulo, 2008. "What does liberalization without price competition achieve?: The case of cocoa in Ghana," GSSP working papers 14, International Food Policy Research Institute (IFPRI).
    10. Margaret McMillan, 1998. "A Dynamic Theory of Primary Export Taxation: Evidence From Sub-Saharan Africa," Discussion Papers Series, Department of Economics, Tufts University 9812, Department of Economics, Tufts University.

    More about this item

    Statistics

    Access and download statistics

    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:taf:oabmxx:v:4:y:2017:i:1:p:1299603. 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: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    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.