A VALUE FOR SMALLHOLDER FARMERS PARTICIPATING IN THE AGRICULTURAL VALUE CHAIN:
TOWARDS THE DEVELOPMENT OF A CONCEPTUAL FRAMEWORK
Participation of smallholder farmers in the agricultural value chain is determined by their ability to capture value. There are different concepts of value that should be considered: those that drive an improvement in output value of a smallholder farmer, and those that pertain to smallholder farmers themselves, the functional (upgrading) and experiential value. Upgrading in the value chain takes three major areas of upgrading strategies: product, process and functions (Kaplinsky and Morris, 2008); the authors of this paper argue that these represent the functional value. The authors therefore claim that functional value refers to an improved or enhanced value in a more physical sense (e.g. higher prices per product sold). That leaves experiential value, which is intrinsically gained by the smallholder farmer, and is driven by improved learning and experience, confidence gained and control. Therefore, for a balanced analysis and understanding of the value for farmers participating in the value chain, the authors propose a conceptual framework which includes the elements of experiential value and functional value. The contribution of this work is therefore an expansion of the perceived value approach that may shed more light on the drivers of inclusion and exclusion of smallholder farmers in value chains. This paper begins by expanding the concept of value as it relates to smallholder farmers. Then, the authors propose a conceptual framework for participating in the value chain in an effort to understand the participation of smallholder farmers in agricultural value chains.
Agricultural value chain, experiential value, functional value, smallholder farmers, smallholder farmer participation.
Caru, A., Cova, B. (2003). Revisiting consumption experience. A more humble but complete view of the concept. Mark. Theory, 3(2), 267–286.
Cronin, J. Jr., Brady, M., Hult, T. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behaviour intentions in service environments. J. Retail., 76(2), 193–218.
De Ruyter, J. K., Wetzels, M., Lemmink, J., Mattson, J. (1997). The dynamics of the service delivery process: a value-based approach. Int. J. Res. Mark., 14, 231–243.
Dunn, E. (2014). Smallholders and Inclusive Growth in Agricultural Value Chains. Retrieved March 20th 2016 from: https://agrilinks.org/sites/default/files/resource/files/FIELD%20Report%20No%2018%20Smallholders%20in%20Value%20Chains.pdf
Dunn, E., Schiff, H., Creevey, L. (2011). Linking Small-Scale Vegetable Farmers to Supermarkets: Effectiveness Assessment of the GMED India Project. USAID AMAP microReport #166.
Dunn, E., Sebstad, J., Batzdorff, L., Parsons H. (2006). Lessons learned on MSE upgrading in value chains. Retrieved March 16th 2018 from: http://www.value-chains.org/dyn/bds/docs/566/USAID%20AMAP%20Upgrading%20Dec%2006.pdf
Fromm, I. (2007). Upgrading in agricultural value chains: the case of small producers in Honduras. Retrieved May 16th 2016 from: https://www.giga-hamburg.de/en/system/files/publications/wp64_fromm.pdf
Grewal, D., Monroe, K., Krishnan, R. (1998). The effects of price-comparison advertising on buyers’ perceptions of acquisition value, transaction value, and behavioural intentions. J. Mark., 62(2), 46–59.
Holbrook, M. (1994). The nature of customer value: an anthology of services in the consumption experience. In: R. T. Rust, R. L. Oliver (Eds.), Service Quality: New Directions in Theory and Practice (pp. 21–71). Thousand Oaks, CA: Sage Publications.
Hsien-Lun, W., Mei-Chi, T. (2010). The Effects of Service Encounter and Experiential Value on Consumer Purchasing Behavior. Wseas Trans. Bus. Econ., 2(7), 59–68.
Kaplinsky, R. (2000). Spreading the gains from globalisation: What can be learned from value chain analysis? J. Dev. Stud., 37(2), 117–146.
Kaplinsky, R., Morris, M. (2001). A handbook for value chain research. Working Paper prepared for the IDRC. Brighton, UK: Institute for Development Studies.
Kaplinsky, R., Morris, M. (2008). Value Chain Analysis: A Tool for Enhancing Export Supply Policies. Int. J. Technol. Innov. Dev., 1(3), 283–308.
Kaplinsky, R., Readman, J. (2001). Integrating SMEs in Global Value Chains: Towards Partnership for Development. Report Prepared for UNIDO, Vienna.
Maas, P., Graf A. (2007). Customer value in Financial services. Retrieved April 12th 2016 from: https://www.econbiz.de/archiv1/2008/55525_customer_value_finance.pdf
McDermott, G. A. (2007). The Politics of Institutional Renovation and Economic Upgrading: Recombining the Vines That Bind in Argentina. Politics & Society 35(1):103-144.
Makosa, D. (2015). Constraints and opportunities to upgrading Uganda’s rice markets: A value chain approach. J. Dev. Agric. Econ., 7(12), 386–399.
Mathwick, C., Malhotra, N., Rigdon, E. (2001). Experiential value: conceptualization, measurement and application in the catalog and internet shopping environment. J. Retail., 77, 39–56.
Mattsson, J. (1992). A Service Quality Model Based on an Ideal Value Standard. Int. J. Serv. Ind. Manag., 3(3), 18–33.
Monroe, K. (1990). Pricing: Making Profitable Decisions. New York, NY: McGraw-Hill.
Park, C. W., Lessig, V. P. (1977). Familiarity and its impact on consumer decision biases and heuristics. J. Cons. Res., 8(2), 223–231.
Peachey, S., Arora S. (2016). Customer at the Centre: Cost to Customer framework. Consultative Group to Assist the Poor (CGAP), unpublished report.
Roig, J. C. F., Garcia, J. S., Tena, M. A. M., Monzonis, J. L. (2006). Customer perceived value in banking services. Int. J. Bank Mark., 24, 266–283.
Sánchez, J., Callarisa, L., Rodríguez, R. M., Moliner, M. A. (2006). Perceived value of the purchase of a tourism product. Tour. Manag., 27, 394–409.
Schiffman, L. G., Kanuk, L. L. (1987). Consumer Behavior (3rd ed.). Englewood Cliffs, NJ: Prentice-Hall.
Schmitt, B. (1999). Experiential marketing. J. Mark. Manag., 15 (1–3), 53–67.
Sheth, J. N., Newman, B. I., Gross, B. L. (1991a). Consumption Values and Market Choices. Theory and Applications. Cincinnati, OH: South-Western Publishing Co.
Sheth, J. N., Newman, B. I., Gross, B. L. (1991b). Why we buy what we buy: A theory of consumption values. J. Bus. Res., 22 (2), 159–170.
Sweeney, J. C. (2008). An integrated model of value equity in spectator sports: conceptual framework and empirical results. Retrieved April 12th 2016 from: http://diginole.lib.fsu.edu/islandora/object/fsu:175999/datastream/PDF/view
Sweeney, J. C., Soutar, G. (2001). Consumer perceived value: the development of multiple item scale. J. Retail., 77(2), 203–220.
Trienekens, J. H. (2011). Agricultural value chains in Developing Countries: A Framework for Analysis. Int. Food Agribus. Manag. Rev., 14(2), 51–82.
Varshneya, G., Das, G. (2017). Experiential value: Multi-item scale development and validation. J. Retail. Cons. Serv., 34, 48–57.
Woo, H. K. H. (1992). Cognition, Value and Price: A General Theory of Value. Ann Arbor, MI: University of Michigan Press.
Woodall, T. (2003). Conceptualising ‘value for the customer’: an attributional, structural and dispositional analysis. Acad. Market. Sci. Rev., 12, 1–42.
Woodruff, R. B. (1997). Customer value: the next source of competitive advantage. J. Acad. Market. Sci., 25(2), 139–153.
Yi-Hua, E. Y., Chihkang, K. W. (2008). Relationships Among Experiential Marketing, Experiential Value, and Customer Satisfaction. J. Hosp. Tour. Res., 32(3), 387–410.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence. J. Mark., 52, 2–22.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This journal permits and encourages authors to post items submitted to the journal on personal websites or institutional repositories both prior to and after publication, while providing bibliographic details that credit, if applicable, its publication in this journal.