Deploying strategic resources: comparing members of farmer cooperatives to non-members in sub-Saharan Africa

Abstract

Primary producers in global value chains, like any other firm, aim for entrepreneurial success through deploying strategic resources, collective action, strategic intent, and a supportive institutional environment. In the current article, we analyze the extent to which members of farmer cooperatives in Ethiopia succeed in deploying strategic resources. We find that non-members utilize resources more efficiently and that the potential for collective action is not realized. The potential for collective action remains unrealized due to the institutional environment. We suggest pathways for further research.

Keywords:

• Collective action
• institutions
• strategic resources
• strategic intent
• developing countries

JEL classification:

• Q12
• Q13
• M13
• L70

Notes

¹ Resources and intent become strategic when they contribute to a firm’s competitive advantage (cf. Barney 1991). Priem and Butler refer to Schoemaker’s (1990: 1179 as cited in Priem and Butler 2001: 29) definition who defines competitive advantage as a firm ‘systematically creating above average returns.’

² We use the following variables for the matching procedure: storage, plowing and sowing, weeding, harvesting, storage, labor, location, animals, time of selling, farm size.

³ We did not include its members in our sample (above), because it is very different from the other cooperatives. Of the 17 members, only 3 are sesame seed farmers.