Spencer Henson, Steven Jaffee and Oliver Masakure
The chapter contributes to on-going debates about the inclusion of smallholders in export value chains for high-value agricultural products. Specifically, it investigates the…
Abstract
The chapter contributes to on-going debates about the inclusion of smallholders in export value chains for high-value agricultural products. Specifically, it investigates the factors driving the procurement practices of exporter of fresh fruits and vegetables in sub-Saharan Africa, and specifically sourcing from smallholders. A survey is undertaken of exporters of fresh fruit and vegetables in sub-Saharan Africa. The resulting data are used to estimate econometrically the propensity of exporters to source from smallholders, and the intensity of sourcing among those exporters who do procure from smallholders. Explanatory variables include firm and market characteristics, supply chain costs, type of product, availability of alternative sources of supply, and judgments regarding the performance of smallholders and other sources of supply.The propensity to procure from smallholders is found to be negatively associated with being a small exporter and the performance of medium- and large-scale producers. Exporters are more likely to source from smallholders if they have their own production capacity and smallholders are judged to perform well. The requirement of customers to comply with private food safety standards is found to have no significant effect on the propensity to procure from smallholders. Conversely, compliance with private standards has a strong influence on the intensity of sourcing from smallholders. Exporters judging smallholders to perform well are more likely to source intensively from smallholders, but to source less if they judge their own production to perform well. High fixed costs tend to be associated with lower intensity of sourcing from smallholders. The results suggest that compliance with private food safety standards does not drive the exclusion of smallholders from export value chains; indeed, conversely, the requirement to comply with such standards is associated with greater intensity of sourcing from smallholders. Smallholders evidently play a key role in the defrayment of risk by exporters in that many exporters combine their own production with smallholder procurement. Costs of procurement from smallholders, however, remain an issue. Evidently, the fixed costs of smallholder supply chains increase appreciably with the intensity of sourcing. The research reported here provides a new perspective on the inclusion of smallholders in export value chains for horticultural products. The incorporation of smallholders into these value chains is seen as the outcome of the procurement decisions of exporters. Contrary to much of the discourse in this area, the results suggest that smallholders can and do compete in export value chains for horticultural products even in the context of exacting food safety standards.
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Oliver Masakure, Spencer Henson and John Cranfield
The purpose of this paper is to assess the financial performance of microenterprises in Ghana by applying the resource‐based theory of the firm. Specifically, it is tested that if…
Abstract
Purpose
The purpose of this paper is to assess the financial performance of microenterprises in Ghana by applying the resource‐based theory of the firm. Specifically, it is tested that if firm‐specific resources dominate sector and market‐wide effects in explaining microenterprise performance, as suggested by the resource‐based theory.
Design/methodology/approach
The relevant literature for both microenterprise performance and the resource‐based theory is reviewed. Data from the 1998/1999 Ghana Living Standards Survey are analysed using ordinary least squares, followed by robustness checks.
Findings
Factors embodied in firm‐specific resources jointly impact enterprise performance. However, sector/market factors also play a role, suggesting that the interaction between microenterprise, sector, and market factors helps explain enterprise performance.
Research limitations/implications
All the constructs of the resource‐based theory cannot be tested due to data limitations.
Originality/value
Small enterprises play a key role in promoting developing country growth, but no study has evaluated microenterprise performance using this particular data set and the resource‐based theory of the firm. Future research should focus on collecting data to further validate this theory.
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Muhammad Shakeel Sadiq Jajja, Muhammad Asif, Frank L. Montabon and Kamran Ali Chatha
The purpose of this paper is to use institutional theory to develop the constructs of institutional pressures for social compliance and argue for a positive relationship between…
Abstract
Purpose
The purpose of this paper is to use institutional theory to develop the constructs of institutional pressures for social compliance and argue for a positive relationship between institutional pressures and Supplier Social Compliance Management System (SSCMS). Moreover, the authors theorize that the impact of institutional pressures on SSCMS is moderated by the supplier’s organizational culture. This is done in a particularly salient context, which is apparel manufacturing in a developing country.
Design/methodology/approach
The hypothesized model is tested using data of 164 suppliers from the apparel manufacturing sector. PLS-based structural equation modeling is used to test the direct and multi-group moderation hypotheses.
Findings
Empirical examination provides evidence that institutional pressures have a positive impact on supplier social compliance and the types of organizational culture have varied moderation effects.
Research limitations/implications
This research is based on cross-sectional data from one industry. Future research should collect data from diverse sectors in different countries.
Practical implications
The findings suggest that consistent pressures from various stakeholders can increase supplier social compliance. In addition, the partial evidence for moderation effect of organizational culture indicates that supplier’s internal value system’s alignment with social compliance pressures plays an important role in determining how supplier acts on social compliance initiatives.
Originality/value
The issue of suppliers’ adoption of social compliance management systems has become prominent as a consequence of the shifting of manufacturing to developing countries. However, comprehensive frameworks explaining antecedents of adoption of SSCMS using large-scale empirical data are limited. In addition, findings on the relationship between supplier social sustainability practices and their antecedents are inconsistent.