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����A conceptual framework to analyse the impact of market linkages on Smallholder farmer performance�

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October, 2022

Reduit, Mauritius

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By :Kasim Kelil (MPhil/PhD student)

Supervisor: Dr. Thanika Juwaheer� Dr. Rajesh Sannegadu

Presented to

UoM Research Week 2022

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Outline

  • Aims and objectives of the study.
  • Underpinning Theory
  • Research Gap
  • Proposed Conceptual framework
  • Hypothesis Formulation (Tentative)
  • Research Methodology
  • Managerial Implication

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1. Aim And Objectives Of the Framework

This conceptual framework aims to analyze the impact of market linkages on smallholder farmers' performance.

Specifically, the conceptual framework intends to:

  1. Establish the relationship between external stakeholders and smallholder farmers’ performance.
  2. Determine the pertinence of the collaboration among smallholder farmers' cooperative on their performance.

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2. Underpinning Theory

  • The framework is based on the notion that farmers’ market linkage directly influences performance.

To explain the relationship between market linkage and performance, the framework draws from three widely integrated theories including:

  • relationship network theory,
  • social capital theory, and
  • collective action theory.

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Underpinning theory……..

1. Relationship networking theory

  • Networking theory refers to the mechanisms and processes of interaction within the network structure to obtain specific results for individuals and groups (Burt, 1992; Fritsch & Kauffeld-Monz, 2008; Borgatti & Halgin, 2011; Neumeyer & Santos, 2018).
  • Relationships vary in that some can be classified as hierarchical relationships, while others are more symmetrical, giving them a more relational nature, such as partnering or collaborative relationships (Ford, 2002).

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Underpinning theory……..

Relationship network theory ….

  • This field establishes the cooperation and interaction network on symmetrical means.
  • It was established by Hakansson and Snehota in1995.
  • It has been widely used to describe the relationship network in three interdependent layers of actors (bonds), resources (ties), and activities (links) to address the influence of relationships on performance.
  • This study framework incorporated to establish more on the relationship nature between smallholder farmers and Stakeholders.

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Underpinning theory……..

2. Social capital theory

  • This field establishes investment in social relations with expected returns.
  • It was established by Bourdieu (1983/1986; 1980) and Coleman (1988; 1990).
  • It has been widely used to develop and maintain more or less social capital as a collective asset.
  • This study framework incorporates social capital to consider the collaboration among smallholder farmers' cooperative on their performance.

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Underpinning theory……..

3. Collective action theory.

  • This field establishes how voluntary action taken by a group of individuals invests time and energy to pursue shared objectives.
  • It was established by Olson (1965)
  • It has been widely used to provide members of the group accessible common and collective benefits.
  • This study framework includes collective action of farmers' cooperative resource use for their performance.

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Table 2: Description of underpinning theory

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Theories

Description

Reference

Relationship Networking Theory

Networks refer to the position of relationships or linkages between Stakeholders (Government, NGO, Supplier, Trader, or Processor) and smallholder farmers' functional ties to share expertise, market information, and resource.

Dershem & Bokuchava, 2016; Pastor et al.,2010; Wambua, 2017; Hakansson and Snehota, 1995

Social Capital theory

Social capital indicates the social relations among individuals based on trust, norms, and social networks to promote collaboration performance for mutual benefits.

Putnam, 1995; Ostrom, 2007; Coleman (1990); Bourdieu (1985

Collective action theory

Collective action promotes smallholders to participate in form of an institution that fulfils coordination functions in the production economy and market exchange effectively.

Barrett, 2008; Hellin et al., 2009; Olson (1965)

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3. Research GAP 1- Single Vs Multiple

  • Existing studies on farmer market linkage performance have applied a single theory on a specific approach independently.

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  • Therefore, this study builds on cohesive multi-disciplinary concepts of relationship networking, social capital, and collective action that are integrated for a sustainable relationship to improve Smallholder farmers' performance.

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S.N

Source

Linking approach

Theory

1

Biggeri et al. (2022, 2018)

Cooperative farmers

Value Chain

2

Shikur (2021

Farmers supply

Supply chain

3

Jebesa (2019)

farmers’ association

Cooperative

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Research GAP – Production and Marketing Performance

  • Previous studies conducted on Smallholder farmers’ wheat production were largely concentrated on production performance.

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  • However, the Smallholder farmers' performance in this study includes production and market performance.

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S.N

Researcher

Concept

Performance

1

Kormelinck et al. (2016)

Social capital

Cooperative activities/process

2

Belay (2020)

social capital in cooperatives

Production

3

Fu et al. (2018)

social capital

Production quality

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Research GAP in Methodology

  • Prior studies have no organized measurement tools for social capital dimension and relationship network content to measure influence on smallholder performance.
  • Methodologically this study develops modified measurement tools for social capital dimensions and relationship networks variables at the same time on performance.
  • Several studies used quantitative techniques to conduct research in the area of market linkage but this study primarily uses the methodological aspects of a mixed approach.

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4. Proposed Conceptual Framework

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Key Variables of the study

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Independent Variable

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1. Government policy linkage

2. NGO support linkage

3. Processors linkage support in value chain

4. Input Suppliers’ relationship

5. Traders linkage in supply chain

6. Cognitive social capital

7. Relational social capital

8. Structural social capital

Dependent Variables

Smallholder farmers Performance

Mediating Variables

Cooperative farmers

Output variables

Contains both Production and market performance

Controlling Variables

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Farmers Age, Gender, education level and farm land size

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Variable Description

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S. N

Relationship Networking Variables

Description

Reference

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Government policy linkage

The extent of governments agencies policy and programs drive to support smallholder production and commercialization efforts to empower smallholder organization critically in relation to the relationship networking to achieve development goal.

Hailu et al., 2016:2; Somkaun et al., 2021; Lencucha et al., 2020; Bezabih et al., 2020

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NGO support linkage

The main tasks of the NGOs are to train producer groups in a number of capacity-building and marketing skills and, where possible, to establish sustainable market linkages with other chain actors.

Abdul‐Rahaman and Abdulai, 2020; Hartmann et al., 2019; Bezabih et al., 2020

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Processors linkage in value chain

The extent of processing factory relationship to assists farmers information on produce high-quality that will fit the requirement to have market access that strength bargaining powers of farmers.

Biggeri et al., 2018; Abate et al., 2014; Bezabih et al., 2020

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Input Suppliers’ relationship

The extent of having reliable market information from suppliers’ partner enable farmers to access the right type of inputs, quantity and quality needed at the right time that critical for the farmers production.

Malak-Rawlikowska et al., 2019; Bezabih et al., 2020

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Traders linkage in supply chain

 

The extent of relationship network of traders promotes smallholder farmers production distribution at fair price and provide farmers information of market feedback for improvement of performance.

bt Musa et al., 2014:83; Bezabih et al., 2020

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Variable description….

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S. N

Dimensions

Description

Reference

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Cognitive social capital

 

The extent of Farmers social understanding created based on shared language, codes, and narratives. Similar perception with a shared values, attitudes, and beliefs

Nahapiet & Ghoshal, 1998;

Tsai and Ghosal, 1998; Putnam, 1995

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Relational social capital

The nature and quality of relationship among farmers based on the level of trust and trustworthiness, and obligations and expectations, identity and identifications

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Structural social capital

The bond among different structural level of farmers in cooperative stems from the level of network ties and configurations, roles, rules, precedents and procedures.

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Variable description

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S. N

Smallholder farmers

performance

Description

Reference

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Production performance

The quantity and quality level of production in collective action.

Ochieng et al., 2018; Orsi et al., 2017

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Market performance

The volume of product sold in the market.

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6. HYPOTHESIS FORMULATION

  • There are 9 hypotheses developed for this study.

Hypothesis for the effect of relationship networking on smallholder farmers performance are;

Hypothesis 1: Government policy linkage has a positive impact on Smallholder farmers performance.

Hypothesis 2: NGO support linkage has a positive impact on Smallholder farmers performance.

Hypothesis 3: Processors linkage support in value has a positive impact on Smallholder farmers performance.

Hypothesis 4: Input Suppliers’ relationship has a positive impact on Smallholder farmers performance..

Hypothesis 5: Traders linkage in supply chain has a positive impact on Smallholder farmers performance.

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HYPOTHESIS FORMULATION…..

Hypothesis for the effect of social capital dimension on smallholder farmers performance are;

Hypothesis 6: Cognitive social capital has a positive impact on Smallholder farmers performance.

Hypothesis 7: Relational social capital has a positive impact on Smallholder farmers performance.

Hypothesis 8: Structural social capital has a positive impact on Smallholder farmers performance..

Hypothesis for the relationship networking and social capital through mediating variables are;

Hypothesis 9: There is a positive mediating effect of Cooperative farmers relationship between relationship networking, and social capital on Smallholder farmers performance.

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7. RESEARCH METHODOLOGY

  • The studies explore in the light of the conceptual framework presented in this section to highlight how the market linkage factors shape the performance of smallholder farmers.
  • To gather baseline information for the study, a series of qualitative and quantitative tools are employed. Data will be collected by applying a mixed approach (qualitative and quantitative). Inherent (emerging) variables will be identified through semi-structured interviews with smallholder farmers (qualitative study). Thereafter, a questionnaire will be administered among a larger population of smallholder farmers using the survey method.

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Qualitative study (Semi structured Interviews with farmers

(December to January 2023)

Questionnaire Design and Pretesting based on the Qualitative study

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Research Methodology -Mixed Method

  • The core assumption of this form of inquiry is that the combination of qualitative and quantitative approaches provides a more complete understanding of a research problem than either approach alone (Creswell, 2014:32).
  • An exploratory sequential mixed method will be used. This method is where a researcher starts with qualitative research and then conducts quantitative research.

Because, data from the qualitative phase could be used to build a new instrument, choose an appropriate one, or choose variables that are going to enter the following quantitative research phase (Barnes, 2019; Creswell, 2014).

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Research Methodology –Qualitative study

  • The researcher is going to use semi-structured interviews to collect data. The semi-structured interviews will be conducted face-to-face. This will allow the researcher to keep his mind open and keep the research factual.
  • A purposive sampling technique will be used to select a representative for an interview based on the experience and position they have in the cooperative and Union.
  • Qualitative data were analyzed by NVivo software.

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Research Methodology- Quantitative Study

  • A 5-point Likert scale ranging from ‘Strongly disagree’ to ‘Strongly agree’ will be used to evaluate the answers to the questions of social capital and relationship networking contents.
  • A multistage purposive random sampling procedure would be used to select representatives of multipurpose cooperatives farmers in the study area. Appropriate numbers of sample smallholder farmers from six cooperatives will be selected in proportion to the population using Kothari (2004) formula.
  • After all the relevant data will be collected and organized, It is analyzed through Partial Least Square regression Structure Equation Modeling (PLS-SEM’s) by using SPSS AMOS 26 software to probe the impact and relationship variables of the study.

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Research Methodology- Quantitative Study

  • A key methodological reason for PLS-SEM’s attractiveness is that the approach follows a causal-predictive paradigm, in which the aim is to test the predictive power of a model carefully developed on the grounds of theory and logic (Chin et al. 2020). PLS-SEM also offers much flexibility in estimating multifaceted model relationships such as in conditional process models (Sarstedt et al. 2020a) or higher-order models (Sarstedt et al., 2019).

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8. MANAGERIAL IMPLICATION

  • This study contributes to the growing literature on integrated theories of social capital, relationship network, and collective action to analyze the antecedent and implications of effective Smallholder farmers' performance.
  • The study generates valuable information on market linkage analysis of the wheat product that assists policymakers at various levels to make relevant decisions on production, market, and designing appropriate policies and strategies.
  • This study contributes strategies to improve wheat production to increase agricultural productivity and smallholder farmers’ incomes of food producers to achieve SDG2 of food security and promote sustainable agriculture by 2030.

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Thank you!

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