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Lead Firms

In: Making Markets More Inclusive

Author

Listed:
  • Kevin McKague
  • Muhammad Siddiquee

Abstract

In least developed countries, it is often the case that market mechanisms, governments, and companies working on their own are unable to coordinate increased productivity and mutually beneficial exchanges in a value chain. It is in these contexts of market failures and weak state governance that the role NGOs can play becomes even more important. Most of the literature on value chain development focuses on the importance of NGOs working with lead firms—usually the largest and most influential firms in a sector—that have the power to influence the adoption of new behaviors and practices, and this is certainly one important part of a value chain facilitation organization’s private sector engagement strategy. However, CARE’s experience in the Bangladeshi dairy value chain showed that working with lead firms was only one strategy for private sector engagement. The other important strategy is microfranchising of entrepreneurs, such as the Krishi Utsho dairy input shops.

Suggested Citation

  • Kevin McKague & Muhammad Siddiquee, 2014. "Lead Firms," Palgrave Macmillan Books, in: Making Markets More Inclusive, chapter 0, pages 151-164, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-37375-5_11
    DOI: 10.1057/9781137373755_11
    as

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