Purpose-This paper assesses the impact of smallholder supply chains on sustainable sourcing to answer the question how food and agribusiness multinationals can best include smallholders in their sourcing strategies and take social responsibility for large scale sustainable and more equitable supply. A sustainable smallholder sourcing model with a list of critical success factors (CSFs) has been applied on two best-practise cases. In this model business and corporate social responsibility perspectives are integrated. Design/methodology/approach-The primary data of the value chain analyses of the two smallholder supply chains of a food and agribusiness multinational have been applied. Both cases were of a join research program commissioned by the multinational and a Non-Governmental Organization using the same methods and research tools. Similarities, differences and interference between the cases have been determined and assessed in order to confirm, fine tune or adjust the CSFs. Findings-Both cases could be conceptualized through the smallholder sourcing model. Most CSFs could be found in both cases, but differences were also found, which led to fine tuning of some CSFs: building of a partnership and effective producers organization, providing farm financing and the use of cross functional teams in smallholder supplier development programs. It was also concluded that the smallholder sourcing model is applicable in different geographical areas. Research limitations/implications-The findings of this study are based on just two cases. More best-practise cases are recommended in order to confirm or to adjust the developed sourcing model and the CSFs. Originality/value-This paper/research fills the need in sustainable Supply Chain Management literature to study supply chains that comply with the triple bottom line concept, rather than supply chains that are just more 'green'.
Food and agribusiness multinational enterprises are redesigning their sourcing strategies to tap into the underused food production potential of small-scale farms in a way that improve farmers’ livelihood. The problem is that current widely applied sourcing models do not include improvement of livelihood of the producers/farmers. The present article explores the applicability of a sustainable smallholder sourcing model with a list of critical success factors, in which business objectives and corporate social responsibility perspectives are combined. To this end, the black soybean supply chain in Java/Indonesia is studied. It was found that the black soybean case can be conceptualized by the sourcing model. Most of the critical success factors were present, but also some differences were identified. The differences enable to fine-tune some critical success factors. The sustainable sourcing model can help in (re-)designing sourcing strategies to secure sustainable and more equitable supply from small-scale farmers from a business perspective.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.