Typology and performance of inter-organizational relationships among Ghanaian farmers
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Date
2021
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Publisher
International Food and Agribusiness Management Review
Abstract
This study explored inter-organizational relationships (IOR) between farmers and agri-food processors in
Ghana and their relative effect on participating farmers’ performance. The IOR were organized into three
broad types: governance (formal/informal); orientation (price, quality, or quantity); and structure (direct-to-buyer).
farmer-based organization (FBO)/agent). The study showed that about 44% of farmers participated in IOR.
and 72% of them use direct-to-buyer relationships compared to 25% and 5% who use FBO and agents. The
total exceeds 100% because some farmers used multiple IOR structures. Likewise, more than half of farmers
involved in IOR use multiple orientations, with 29%, 81% and 54% of them using orientations involving
quantity, quality, and price specifications, respectively. Formal governance (IOR) accounted for 31% of IOR
by governance. On performance, the average farm income of farmers involved in IOR was GHS 3,947, which
was 3.1 times higher than non-IOR farmers, and those with formal arrangements had 6.4 times higher average
farm income than farmers in informal relationships. IOR with formal governance and quality-price orientation
presented positive and statistically significant effects on marginal benefits, while producer demographics and
socio-economic characteristics did not. These results provide instruction for policymakers and practitioners
in helping inform farmers’ participation in IOR that produces superior outcomes.
Description
Research Article
Keywords
inter-organizational relationships, marginal benefit, governance