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Article
Publication date: 12 October 2021

Haki Pamuk, Marcel van Asseldonk, Ruerd Ruben, Tumainiely Kweka, Cor Wattel and Joseph Phillip Hella

Institutional structures of rural savings and loan associations influence their performances. One of the guiding principles for defining clear group membership boundaries is by…

Abstract

Purpose

Institutional structures of rural savings and loan associations influence their performances. One of the guiding principles for defining clear group membership boundaries is by setting rules on who has access. Social ties is a prominent requirement for membership. The objective of the current study is to provide quantitative evidence on the role of social ties membership criteria for the performance of saving and loan associations.

Design/methodology/approach

A cross-sectional survey was conducted in July–August 2019 comprising 48 associations in 13 villages in the Iringa District of Tanzania. In the current study, the authors use two indicators to measure the social ties between members, namely social closed association (the association applies criteria to accept only members who are relatives, friends or from the same hamlet) and physical distance (the fraction of members from other villages).

Findings

The authors find that associations are diverse both in terms of social ties, physical distance and performance, even in a small homogeneous region like Iringa District. Providing loans more easily to members with social ties has a negative relationship with loan repayment rates. Associations applying the social closeness criteria experience higher default rates than those not applying. The default rates become even worse when the fraction of member members from other villages increases in the socially tied associations.

Practical implications

Physically distant members are more likely to default as they perceive less social pressure in an association with socially tied members. Development practitioners and policy makers should integrate the potential implications.

Originality/value

The authors provide empirical evidence on the relevance of social ties on credit access and repayment in savings and loan associations, using a novel multi-level data on financial performance in the context of community-based finance organizations in rural areas.

Details

Agricultural Finance Review, vol. 82 no. 5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 2 May 2017

Alemayehu Dekeba Bekele, Joost Beuving and Ruerd Ruben

The purpose of this paper is to examine the effect of health information and sensory attributes on consumer’s propensity to upgrade and their willingness to pay (WTP) for…

Abstract

Purpose

The purpose of this paper is to examine the effect of health information and sensory attributes on consumer’s propensity to upgrade and their willingness to pay (WTP) for pasteurized milk in Ethiopia.

Design/methodology/approach

The authors used a framed market experiment with 160 participants in 14 central locations in urban Ethiopia. The authors used a double hurdle model to analyze consumer willingness to shift to pasteurized milk and their WTP for quality attributes in pasteurized milk.

Findings

Consumers are willing to pay a 4 percent premium for quality attributes in pasteurized milk. Male and employed participants are willing to shift and pay a premium for pasteurized milk. Conversely, consumers with more children, higher income, and higher raw milk consumption are less likely to shift to pasteurized milk. These results also show that taste is negatively related to consumer propensity to upgrade to pasteurized milk. Further, about half of the consumers who were provided with health information are willing to pay a premium of 11 percent for pasteurized milk, whereas others would pay only 6 percent. After providing the treatment group with health information, those consumers with higher income, old people and consumers with children are less likely to shift to pasteurized milk. Overall, consumer preference for raw milk is the result of taste, perceived nutrition and perceived health benefits. The study points at a segmented milk market and the consequent need for the provision of a targeted milk market promotion.

Research limitations/implications

The application of experimental auctions in developing countries requires an extensive learning exercise for participants.

Originality/value

The authors used a non-hypothetical valuation mechanism to unravel the effect of subjective and intrinsic milk attributes in fluid milk choice decisions and its variation across socio-economic groups in a developing country context.

Details

International Journal of Quality & Reliability Management, vol. 34 no. 5
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 30 January 2007

Ruerd Ruben, Dave Boselie and Hualiang Lu

The paper seeks to understand the conditions that motivate Asian supermarkets' choices for vegetable sourcing through wholesale procurement or preferred supplier systems.

8721

Abstract

Purpose

The paper seeks to understand the conditions that motivate Asian supermarkets' choices for vegetable sourcing through wholesale procurement or preferred supplier systems.

Design/methodology/approach

Insights from transaction cost theory are used to analyze the evolution of fresh produce procurement regimes by supermarkets in Bangkok and Nanjing.

Findings

Trade‐offs between higher production‐cum‐investment costs (i.e. fixed investments, variable production costs and economies of scale) with expected savings in transaction costs (governance and opportunistic behaviour) are registered that could hinder contractual delivery.

Research limitations/implications

Transaction costs play an important role in shaping procurement regimes. Information, negotiation and monitoring costs are high in early phases of market development, but may be reduced when retailers establish direct and contractual relations with selected producers. Such preferred supplier arrangements may be helpful to reduce risks related to delivery frequency and product quality, but require substantial investments that only become feasible when opportunistic behaviour is adequately controlled. The nature of supplier‐buyer relations alters in a number of subsequent phases from chain optimisation to integral chain care.

Practical implications

With the establishment of large‐scale supermarkets in Asia, buyers need more information about the quality of products and the creditworthiness and reputation of sellers and therefore increasingly rely on contractual delivery relationships. For preferred supplier regimes, scale economies and enforcement of mutual trust are key issues to establish stable relations.

Originality/value

The shift from wholesale purchase towards preferred supplier regimes in emerging economies involves large investments that can only be met if governance costs are reduced.

Details

Supply Chain Management: An International Journal, vol. 12 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 15 March 2011

Ruerd Ruben and Guillermo Zuniga

Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and…

4740

Abstract

Purpose

Smallholder farmers are increasingly subject to different types of standards that offer specific conditions for their market incorporation. The proliferation of private and voluntary (civic) standards raises questions regarding their impact on farmers' welfare and their role in the upgrading of value chains. This paper aims to address this issue.

Design/methodology/approach

Based on extensive fieldwork and careful matching of 315 farmers in Northern Nicaragua who produce coffee under Fair Trade, Rainforest Alliance and Café Practices labels or deliver to independent traders, the effects on income, production and investments are compared. Moreover, the implications of different contract conditions for risk behaviour, organizational force, loyalty and gender attitudes are assessed.

Findings

The paper finds that Fair Trade provides better prices compared with independent producers, but private labels out‐compete Fair Trade in terms of yield and quality performance. While Fair Trade can be helpful to support initial market incorporation, private labels offer more suitable incentives for quality upgrading.

Research limitations/implications

Civic standards exhibit major effects on local institutions' and farmers' behaviour, while B2B standards are more effective for improving production and management practices. Dynamic improvement standards may bridge the gap between both.

Practical implications

Fair Trade standards are useful to provide initial market access to small‐holders, but private standards offer better prospects for subsequent quality upgrading.

Originality/value

This is the first large‐scale comparative impact assessment of coffee standards that delivers unbiased empirical results.

Details

Supply Chain Management: An International Journal, vol. 16 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 18 April 2008

Guillermo Zúñiga‐Arias, Ruerd Ruben, Ruud Verkerk and Martinus van Boekel

The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica.

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Abstract

Purpose

The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica.

Design/methodology/approach

The study analyses the relationship between intrinsic product quality attributes and socio‐economic characteristics of mango producers in the Central Pacific zone of Costa Rica. Data are derived from a representative sample of 35 mango producers. A mango quality index for local and export market outlet is constructed and quality performance is subsequently related to farm‐household characteristics and contractual delivery parameters. Categorical regression methods are used to identify the relationships between farm‐household characteristics, production system features, marketing relationships and quality attributes weighted by consumers' preferences.

Findings

Key attributes of the quality index – related to dimensions of ripeness, appearance and variability – appear to be strongly related to farm‐household characteristics like the producers' age and experience, input use intensity and family labour availability. Preferences for certain contractual regimes and marketing arrangements give rise to differentiation in quality performance. Long‐term delivery relationships and non‐price attributes appear as key factors for quality improvement in mango.

Research limitation/implications

Although the study is based on a modest sample, the significant relationships between the constructs in the model are found to be sufficiently robust.

Originality/value

The research approach enables the estimation of a model where quality performance is related to technical and institutional aspects related to the organisation of mango delivery chain.

Details

International Journal of Quality & Reliability Management, vol. 25 no. 4
Type: Research Article
ISSN: 0265-671X

Keywords

Open Access
Article
Publication date: 27 August 2024

Carla Canelas, Felix Meier zu Selhausen and Erik Stam

Female smallholder farmers in low-income countries face barriers to accessing capital and commodity markets. While agricultural cooperatives provide services that contribute to…

Abstract

Purpose

Female smallholder farmers in low-income countries face barriers to accessing capital and commodity markets. While agricultural cooperatives provide services that contribute to the income and productivity of small-scale producers, evidence of cooperatives' social and economic empowerment of female smallholders remains limited. We apply Sen's capability approach to female entrepreneurs' socioeconomic empowerment to examine whether women's participation in a coffee and microfinance cooperative from rural western Uganda benefits their social and economic position within their household. First, we study the relationship between women's cooperative participation and their household coffee sales and savings. Second, we investigate the link between women's cooperative participation and their intra-household decision-making and whether the inclusion of the husband in his wife's cooperative strengthens or lowers women's decision-making power.

Design/methodology/approach

We carry out a case study of a hybrid coffee and microfinance cooperative that promotes social innovation through the integration and empowerment of female smallholders in rural Uganda. Using a cross-sectional survey of 411 married female cooperative members from 26 randomly selected self-help groups of Bukonzo Joint Cooperative and 196 female non-members from the identical area, employing propensity score matching, this paper investigates the benefits of women's participation in a coffee and microfinance cooperative in the Rwenzori Mountains of western Uganda. We present and discuss the results of our case study within an extensive literature on the role of institutions in collective action for women's empowerment.

Findings

Our findings provide new empirical evidence on female smallholders' participation in mixed cooperatives. Our results indicate that women's participation in microfinance-producer cooperatives appears to be a conditional blessing: even though membership is linked to increased women's intra-household decision-making and raised household savings and income from coffee sales, a wife with a husband in the same cooperative self-help group is associated with diminished women's household decision-making power.

Research limitations/implications

The focus of this study is on female coffee smallholders in an agricultural cooperative in rural western Uganda. In particular, we focus on a case study of one major coffee cooperative. Our cross-sectional survey does not allow us to infer causal interpretations. Also, the survey does not include variables that allow us to measure other dimensions of women's empowerment beyond decision-making over household expenditures and women's financial performance related to savings and income from coffee cultivation.

Practical implications

Our empirical results indicate that female smallholders' cooperative membership is associated with higher incomes and coffee sales. However, husband co-participation in their wives' cooperative group diminishes wives' decision-making, which suggests that including husbands and other family members in the same cooperative group may not be perceived as an attractive route to empowerment for female smallholders. For these reasons, an intervention that encourages the cooperation of both spouses and that is sensitive to context-specific gender inequalities, may be more successful at stimulating social change toward household gender equality than interventions that focus on women's autonomous spheres only.

Originality/value

While the literature thus far has focused on microfinance's potential for women's empowerment, evidence on agricultural cooperatives' affecting women's social and economic position is limited. First, our findings provide novel empirical evidence on the empowering effects of women's participation in a self-help group-based coffee cooperative in rural Uganda. Second, our data allows us to explore the role of husbands' participation in their wives' cooperative and SGH. We embed our hypotheses and empirical results in a rich discussion of female entrepreneurship, microfinance and cooperative literature.

Details

Journal of Small Business and Enterprise Development, vol. 31 no. 8
Type: Research Article
ISSN: 1462-6004

Keywords

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