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Inclusive Business Models in Agri-food Value Chains: What Safeguards for Whom?

Author

Listed:
  • Claude Ménard

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Wytse Vellema

    (UGENT - Universiteit Gent = Ghent University)

Abstract

Inclusive business models are promoted as unique opportunities to combine profitability for firms needing reliable supply from small-scale farmers with market inclusion for those farmers. In environments with weak public institutions, such agreements may be conducive to sustainable income, yet costly or even impossible to enforce. They rely on firms willing to provide investment while being exposed to high appropriability hazards. This paper explores the relationship between investments, appropriability hazards, and safeguards based on ten African case studies. Results suggest that in environments in which commitments are hard to secure, the business model chosen is largely determined by safeguarding against side-selling.

Suggested Citation

  • Claude Ménard & Wytse Vellema, 2020. "Inclusive Business Models in Agri-food Value Chains: What Safeguards for Whom?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03534683, HAL.
    • Handle: RePEc:hal:cesptp:hal-03534683
    DOI: 10.1080/15228916.2019.1658842
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    Cited by:

    1. Carias, Dora & Page, Tony & Smith, Hilary & Race, Digby & Keenan, Rodney J. & Palmer, Graeme & Baynes, Jack, 2022. "Beyond the ‘Field of Dreams’ model in smallholder forestry: Building viable timber value chains for smallholder tree growers in developing countries," Land Use Policy, Elsevier, vol. 120(C).
    2. Schoneveld, George C. & Weng, Xiaoxue, 2023. "Smallholder value creation in agrifood chains: Value network approach," Land Use Policy, Elsevier, vol. 131(C).

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