The influence of value chain integration on performance: An empirical study of the malt barley value chain in Ethiopia

Abstract

The purpose of this study is to examine the interplay between value chain integration dimensions and value chain performance along the malt barley value chain in Ethiopia. The analyses were based on survey data sets obtained from 320 farmers and 100 traders and qualitative interview responses captured from 62 key informants selected from among members of the chain. The structural equation modelling (SEM) technique was employed to seek answer for the question of how value chain integration dimensions are related to performance. The results of the analyses showed the existence of positive relationships between coordination of activities and performance, and between joint decision-making and performance at farmers-cooperatives interface; and between commitment towards long-term relationships and performance at farmers-traders interface. The study has made important empirical contributions in areas of value chain integration and performance and their interplays within the context of the studied malt barley value chain. The key findings of the study make important policy implications for agribusiness value chains in the developing countries. The study would open a venue for robust investigation based on wider data base from various agribusiness chains in Ethiopia or even beyond, for better validation of the findings.