|
Full Length Research Paper
|
|
Reaping the benefits of value innovation: Lessons for small
agribusinesses in Africa
Hannelize Jacobs* and Chipego Zulu
Department of
Management, Monash South Africa (A campus of Monash
University, Australia), South Africa.
*Corresponding
author. E-mail:
hannelize.jacobs@monash.edu.
Accepted 3
January, 2012 |
|
|
|
Abstract |
|
|
Small agribusinesses play a vital role in sustaining the gross
domestic product (GDP) of numerous economies in Africa. The
survival and continual growth of these businesses in the global
economy is essential to poverty minimisation, sustaining the
livelihoods of individuals and subsequently the growth of
African economies as a whole. The strategy to stimulate
agricultural development advocated by prominent African
agricultural organisations and policy makers is to boost
investments from the private sector into agriculture by getting
domestic and global financial organisations to invest in
agro-industry and therefore, agribusiness. This paper argues
that such a strategy has the potential to increase the debt of
African countries and proposes a more effective alternative. By
adopting the strategic logic of value innovation, African small
agribusiness owners and/or managers can use and even reduce
their current resources or create new ones that can lower their
costs substantially, and at the same time, allow them to
differentiate themselves. This approach, which has the potential
to transform the industry, has had very little exposure in terms
of its application in the agricultural industry in Africa. Also,
very limited research on value innovation in the context of
small agribusinesses in Africa exists. A theory building study
was conducted using empirical evidence from a theoretical sample
of cases. Reasons why value innovation as strategy is not
utilised by small agricultural businesses in Africa were
identified and a theoretical model – the awakening model –
developed to assist small agribusinesses in Africa to adopt this
logic and boost their growth and increase their profits for a
more prosperous Africa.
Key words:
Value innovation, small agribusiness, strategy, Africa.
|
