IDEAS home Printed from https://ideas.repec.org/a/spr/gjofsm/v23y2022i1d10.1007_s40171-022-00331-y.html
   My bibliography  Save this article

Innovation in Agriculture Financing Using Inter-Organizational Governance Flexibility: Case Study of an Agriculture Value Chain Financier in India

Author

Listed:
  • Savita Shankar

Abstract

Historically, financial institutions in India have not sufficiently met the needs of small and marginal farmers due to the greater risks and higher operational costs involved in catering to their needs. To expand access to finance to these underserved but important sections of the economy, it is necessary to look beyond traditional standardized lender-borrower relationships. Financiers need to instead adopt flexibility in governance forms and forge new kinds of inter-organizational partnerships to serve these segments profitably. A good example of such a new lending model is agricultural value chain financing. Agricultural value chain financiers adopt flexibility in governance forms by having in their fold multiple group entities with more than one legal form. They also form several partnerships with flexibility in governance mechanisms and governance tools to develop customized solutions for a particular value chain. This paper uses the situation-actor-process and learning- action-performance (SAP-LAP) framework to evolve a conceptual model to illustrate this. It further describes a case study of an agricultural value chain financier in India to demonstrate the application of the model. The objective of the paper is to demonstrate how governance flexibility can help address traditional barriers in addressing the financial needs of neglected communities.

Suggested Citation

  • Savita Shankar, 2022. "Innovation in Agriculture Financing Using Inter-Organizational Governance Flexibility: Case Study of an Agriculture Value Chain Financier in India," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 65-75, December.
  • Handle: RePEc:spr:gjofsm:v:23:y:2022:i:1:d:10.1007_s40171-022-00331-y
    DOI: 10.1007/s40171-022-00331-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40171-022-00331-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s40171-022-00331-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malhotra, Deepak & Lumineau, Fabrice, 2011. "Trust and collaboration in the aftermath of conflict: the effects of contract structure," MPRA Paper 38358, University Library of Munich, Germany.
    2. Sanjay Chaudhary & P. K. Suri, 2021. "Ranking the Factors Influencing e-Trading Usage in Agricultural Marketing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 233-249, September.
    3. Arun Kumar Deshmukh & Ashutosh Mohan & Ishi Mohan, 2022. "Goods and Services Tax (GST) Implementation in India: A SAP–LAP–Twitter Analytic Perspective," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(2), pages 165-183, June.
    4. Mathew Paul Ojo & Adeolu Babatunde Ayanwale, 2019. "Value chain financing and plantain production in Nigeria: an ex-ante approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-15, December.
    5. Abraham, Mathew & Verteramo Chiu, Leslie & Joshi, Ekta & Ali Ilahi, Muhammad & Pingali, Prabhu, 2022. "Aggregation models and small farm commercialization – A scoping review of the global literature," Food Policy, Elsevier, vol. 110(C).
    6. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    7. Khushboo Gulati & Seema Gupta & C. P. Gupta, 2020. "The Transformation of Governance System: A Decade Long Experience of Corporate Governance Using Meta-analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 233-262, September.
    8. Jeffrey J. Reuer & Africa Ariño, 2007. "Strategic alliance contracts: dimensions and determinants of contractual complexity," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 313-330, March.
    9. Stuart Evans & Homa Bahrami, 2020. "Super-Flexibility in Practice: Insights from a Crisis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 207-214, September.
    10. Gulati, Ashok & Juneja, Ritika, 2019. "Agricultural Credit System in India: Evolution, Effectiveness and Innovations," Working Papers 292565, University of Bonn, Center for Development Research (ZEF).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dayashankar Maurya & Amit Srivastava, 2022. "Controlling Partner Opportunism in Cross-Sectoral Alliance: Dynamics of Governance Flexibility," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 15-28, December.
    2. Guo, Shiau-Ling, 2023. "The governance implication of the geographic concentration of franchise activities for franchise relationships," Journal of Business Research, Elsevier, vol. 157(C).
    3. Liwen Wang, 2023. "The interplay of contracts and trust: untangling between- and within-dyad effects," Post-Print hal-03944358, HAL.
    4. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    5. Wang, Yu & Chen, Yongqiang & Wang, Wenqian & Tang, Yinqiu, 2019. "Differentiating two types of learning in contract design: Evidence from the construction industry," Scandinavian Journal of Management, Elsevier, vol. 35(1), pages 1-11.
    6. Zhang, Lihan & Gao, Yan & Lu, Wenxue & Guo, Wenqian, 2023. "The influence of conflict event strength on interorganizational cooperation: Moderating roles of contractual complexity and trust," Journal of Business Research, Elsevier, vol. 159(C).
    7. Nadia Hanif & Abida Hafeez & Noman Arshed, 2022. "Formal Institutional Distance and cross-border M&A-Contract Ineffectiveness: Moderating Role of Advisory Organizations," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 1-16, March.
    8. Mengyuan Cheng & Guoliang Liu & Yongshun Xu & Ming Chi, 2021. "Enhancing Trust Between PPP Partners: The Role of Contractual Functions and Information Transparency," SAGE Open, , vol. 11(3), pages 21582440211, August.
    9. McCarter, Matthew W. & Wade-Benzoni, Kimberly A. & Kamal, Darcy K. Fudge & Bang, H. Min & Hyde, Steven J. & Maredia, Reshma, 2020. "Models of intragroup conflict in management: A literature review," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 925-946.
    10. Nguyen Trung Dung & Doris Schmied & Le Chinh, 2022. "Developing a Flexible Form of Collaborative and Inter-Organizational Governance: The Small Farmer-Focused Governance Model in Lam San Commune (Vietnam)," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 51-64, December.
    11. Stephanie Eckerd & Sean Handley & Fabrice Lumineau, 2022. "Trust violations in buyer–supplier relationships: Spillovers and the contingent role of governance structures," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 47-70, July.
    12. Priyanka Jaiswal, 2022. "Impact of Leader’s Behavioural Flexibility on Intra- and Inter-organizational Governance Flexibility," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 29-38, December.
    13. Joshua R. Bruce & John M. de Figueiredo & Brian S. Silverman, 2019. "Public contracting for private innovation: Government capabilities, decision rights, and performance outcomes," Strategic Management Journal, Wiley Blackwell, vol. 40(4), pages 533-555, April.
    14. Isidore Bimeme Bengono, 2022. "Governance and Organisational Flexibility at the Junction of African MFIs’ Sustainability Issues," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 39-50, December.
    15. Massimo G. Colombo & Evila Piva, 2019. "Knowledge misappropriation risks and contractual complexity in entrepreneurial ventures’ non-equity alliances," Small Business Economics, Springer, vol. 53(1), pages 107-127, June.
    16. Citera, Emanuele & Sau, Lino, 2019. "Complexity, Conventions and Instability: the role of monetary policy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201924, University of Turin.
    17. Emmanuel Yeboah-Assiamah & Kobus Muller & Kwame Ameyaw Domfeh, 2018. "‘Complex crisis’ and the rise of collaborative natural resource governance: institutional trajectory of a wildlife governance experience in Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(5), pages 2205-2224, October.
    18. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    19. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
    20. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:gjofsm:v:23:y:2022:i:1:d:10.1007_s40171-022-00331-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.