Analysing the feasibility of agro-based value chain configurations in the rural context with B2B marketing

Abstract

Purpose

This paper aims to advocate for small-scale entrepreneurship with commercial cultivation to earn better profits at the farmer level. This paper explores potential value chain configurations of vertical coordination.

Design/methodology/approach

The aloe vera supply chain was examined for the study where aloe vera juice is the product. The various configurations are complete vertical coordination, semi-vertical coordination and non-vertical coordination. These were analysed to find feasibility and market prospects based on parameters. The cyclic view of supply chains, comparative analysis and fuzzy-analytical hierarchy process algorithm are presented.

Findings

The semi-vertically coordinated supply chain is indicated as the optimum setup to initiate value chains. The entrepreneurs in this configuration will be able to sell semi-finished produce to a brand that will process and distribute the final product. This B2B setup will help the farmer to earn better revenues in the post-COVID-19 scenario. Effective marketing with improved execution and innovation will boost the food processing industry.

Research limitations/implications

This study uses an established methodology to distinguish among alternatives based on underlying factors. The study is based on data collected from stakeholders. The study reflects the most accurate picture of real-world scenarios at the farm and market level in the Indian context.

Practical implications

This study’s learnings will help understand the organisational approach to serve demand by designing unique business configurations. Adapting the fundamental model with technological intervention will improve supply chain performance and sustainability. The most modern approaches in agri-business, such as subscription models, vertical farming, corporate entrepreneurship and technological intervention, will be covered in future work.

Social implications

This study will help stakeholders, including the government, decide whether to introduce training skills, subsidy policies, business expansion ideas and feasibility studies.

Originality/value

The study highlights the strategic role of developing the B2B platform to support customer values and customer ecosystem with better product availability.

Citation

Priyadarshi, R. and Routroy, S. (2024), "Analysing the feasibility of agro-based value chain configurations in the rural context with B2B marketing", International Journal of Organizational Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOA-03-2024-4322