Abstract
Selection of value chain strategies by development practitioners and value chain participants themselves has been restricted to preset types of upgrading. This paper argues for an extension of the range of strategy solutions to value chains. An empirical application identifies successful strategies for honey value chains in Brazil for 2015–2020. Strategy and performance indicators were selected using the value chain Structure-Conduct-Performance (SCP) framework. Experts’ opinion was elicited in a Delphi for business scenarios, and adaptive conjoint analysis was used to identify strategies for increasing production growth and local value-added. This study identifies important strategies beyond upgrading typologies, and finds that important strategies differ by performance goal and scenario. The value chain SCP allows searching for promising strategies towards performance–the “better deal”–in an integrated way.
Highlights
Development organizations have supported value chain interventions to reduce poverty and increase local chain competitiveness [1, 2]
Considering the foregoing discussion, the main objective of this paper is to extend of the range of strategy solutions to value chains beyond upgrading typologies
Given that promising strategies vary according to performance goals, value chain streams are advised to first prioritize a performance goal
Summary
Development organizations have supported value chain interventions to reduce poverty and increase local chain competitiveness [1, 2]. A crucial task in any value-chain-oriented development project is to identify the value chain strategies that are most effective in achieving its desired goals [3, 4]. Aside from value chain interventions, participants of a value chain may frequently need to change their joint strategies in response to new structural events [8,9,10]. New structural events may relate to changes in industry structure outside of the control of chain participants. In this context, the strategic notion of upgrading has been influential: looking for rent-rich opportunities that allow firms to add value to their products through shifts in their capabilities, technologies, and targeted markets.
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