A Quantitative Approach to Innovation in Agricultural Value Chains: Evidence from Kenyan Horticulture

Abstract

In less developed countries such as Kenya trade is increasingly occurring through, and employment is found within, global and local value chains. Yet, although innovation is widely recognised as crucial for development, the endogenous relationship between small-scale innovations and participation in global value chains (GVCs) has yet to be explored sufficiently. This endogeneity is highlighted using the L s of labels linkages and learnings as key overlapping factors that affect both the processes of innovation as well as GVC participation. Drawing on a survey of 320 fresh fruit farmers and 55 interviews in Kenya, we develop a novel method to quantify small-scale agricultural innovations, which are categorised into two overarching types. The first formal, emanate from meeting standard requirements; the second, informal, evolve from local contexts and are less codified. We find that GVC farmers perform more formal innovations, while local farmers perform similar levels of informal innovation to GVC farmers.

Embeddedness beyond the lead firm in global production networks: Insights from Kenyan horticulture

“…However, local farmers (the control group) were also unable to negotiate for better terms. Therefore, all main buyers, whether KEFs, local brokers or lead firms, hold positions of power over farmers – contributing to their weakened positionality and difficulty in smoothly embedding into new networks (similar to findings in Barrientos, 2019; Krishnan and Foster, 2018).…”

Global decisions versus local realities: Sustainability standards, priorities and upgrading dynamics in agricultural global production networks

“…One such group was the Kandara Farmers’ Group in Murang'a County, supplying over 300 tons of avocados to Kenyan exporters (Kakuzi, AAA growers and Vegpro) per season. In order to facilitate the steady inflow of volumes and reduce overall transaction costs of monitoring, farmer groups were either formed by Kenyan exporters, by spatially demarcating a ‘zone’ that could provide them a constant produce of 10 tons per week, or by tapping into already existing groups (Krishnan & Foster, 2018). Kandara Farmers’ Group was part of the former category.…”

Digital connectivity at the upstream end of value chains: A dynamic perspective on smartphone adoption amongst horticultural smallholders in Kenya

“…They are theorized as an endogenous driver of upgrading processes as well as a mode to foster collective capacity and action (Giuliani et al., 2005). For horticultural production in Kenya, Krishnan and Foster (2018) support the importance of such horizontal knowledge exchanges. Comparing formal, top-down innovations enabled by GVC integration with informal innovations based on local spillovers, they found a substantial ‘range of small-scale, adaptive practices that have evolved locally’ and constituted frugal upgrading tendencies.…”