Abstract
ABSTRACT Inclusive business models are promoted as unique opportunities to combine profitability for firms needing reliable supply from small-scale farmers with market inclusion for those farmers. In environments with weak public institutions, such agreements may be conducive to sustainable income, yet costly or even impossible to enforce. They rely on firms willing to provide investment while being exposed to high appropriability hazards. This paper explores the relationship between investments, appropriability hazards, and safeguards based on ten African case studies. Results suggest that in environments in which commitments are hard to secure, the business model chosen is largely determined by safeguarding against side-selling.
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