Restricted accessResearch articleFirst published online 2024
Understanding Determinants of Managerial Competencies of FPO (Farmer Producer Organization) Leadership for Driving Sustainable Growth: A Strategic Framework and Policy Implications
The study aims to determine the key variables influencing the competencies of managerial teams of farmer producer organizations (FPOs) that impact their performance and progress towards attaining sustainable growth in the state of Andhra Pradesh. Primary data was collected from a random sample of 15 FPOs involving 94 managerial team members and secondary data from FPO financial statements spanning over 2019–2022. Statistical techniques, namely index scores, ANOVA, ordinal logit and financial ratios, are used for empirical analysis. Higher formal education, exposure to previous business activities and digital media and experience in leadership roles in community-based organizations (CBOs) are identified as key competency determinants of FPO managerial teams. FPOs are categorized into supported existence, stagnant, self-sustained and sustained growth based on their financial performance. Sustained growth FPOs comparatively demonstrated better performance over their counterparts, attributed to higher competency determinants that enabled them to adopt a holistic value chain approach. Thus, findings indicated a positive relation between competencies and performance. In the light of findings, a strategic four I (4I) model and sustained growth matrix are proposed to enhance business competencies for improved performance of FPOs to grow as potential social enterprises.
AgarwalB. (2010). Rethinking agricultural production collectives. Economic & Political Weekly, 45(9), 64–78.
2.
AmaniS. M. (2016). Building and assessing the capacity of farmers’ organizations: The case of the United Nations World Food Programme’s purchase for progress [Unpublished doctoral dissertation]. Arizona State University.
3.
BergevoetR. H. M., & WoerkumC. V. (2006). Improving the entrepreneurial competencies of Dutch dairy farmers through the use of study groups. Journal of Agricultural Education and Extension, 2(1), 25–39.
4.
ChauhanS., & MurrayE. V. (2019). Financial performance and evaluation of some farmer producer companies in South India [Paper presented]. Issues in emergence of farmer producer companies in India, Tezpur, Assam, pp. 1–17.
5.
EsubalewA. A., & RaghuramaA. (2020). The mediating effect of entrepreneurs’ competency on the relationship between bank finance and performance of micro, small, and medium, enterprises (MSMEs). European Research on Management and Business Economics, 26(2), 87–95.
6.
Food and Agriculture, Organization (FAO). (2014). Farmers’ organizations in Bangladesh: A mapping and capacity assessment. https://sdgs.un.org/sites/default/files/publications/1939Farmers%20Organizations%20in%20Bangladesh.pdf
7.
Government of India (GOI). (2013). Policy and process guidelines for farmer producer organizations. https://www.mofpi.gov.in/sites/default/files/fpo_policy_process_guidelines_1_april_2013.pdf
8.
Government of India (GOI). (2019). Strategy paper for promotion of 10,000 farmer producer organizations (FPOs). http://sfacindia.com/UploadFile/Statistics/Strategy-Paper-on-Promotion-of-10,000-FPOs.pdf
9.
Government of India (GOI). (2020). All India report on agriculture, 2015–16. Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare. https://agcensus.nic.in/document/agcen1516/ac_1516_report_final-220221.pdf
10.
GovilR., NetiA., & RaoR. M. (2020). Farmer producer companies past, present and future. Azim Premji University. https://azimpremjiuniversity.edu.in/publications/2020/report/farmer-producer-companies-past-present-and-future
11.
International Fund for Agricultural Development (IFAD). (2015). A field practitioner’s guide: Institutional and organizational analysis and capacity strengthening. https://www.ifad.org/documents/38714170/39144386/A+field+practitioner%27s+guide+-+Institutional+and+organizational+analysis+and+capacity+strengthening.pdf/48466eeb-244e-4f3b-a67d-f587ebf75038
12.
IslamI., HoqueM. J., MiahM. A. M., & SheheliS. (2013). Competency assessment of the farmers on the application of one house one farm approach. Progressive Agriculture, 24(1–2), 291–299.
13.
JoshiS. K., & ChoudharyV. K. (2018). Performance of farmer producer organizations (FPOs) in different regions of Chhattisgarh State: A case study. Indian Journal of Agricultural Economics, 73(3), 399–406.
14.
KakatiS., & RoyA. (2017). A Study on the financial performance of farmer producer companies with special reference to north-east India. Amity Journal of Agribusiness, 2(1), 38–57.
15.
KakatiS., & RoyA. (2021). Financial performance of farmer producer companies of India: A study from 2013–2014 to 2018–2019. International Journal of Rural Management, 17(1), 1–19.
16.
KalogerasN., PenningsJ. M. E., BenosT., & DoumposM. (2013). Which cooperative ownership model performs better? A financial-decision aid approach. Agribusiness, 29(1), 80–95.
17.
KaramiE., & Rezaei-MoghaddamK. (2005). Modeling determinants of agricultural production cooperatives’ performance in Iran. Agricultural Economics, 33(3), 305–314.
18.
KaushikR. (2022). Understanding cooperatives as social enterprises. Economic & Political Weekly, 57(5), 24–30.
19.
LauT., ChanK. F., & ManT. W. Y. (1999). Entrepreneurial and managerial competencies: Small business owner–managers in Hong Kong. In FoshP., ChanA. W., ChowW. W. S., SnapeE., & WestwoodR. (Eds), Hong Kong management and labour: Change and continuity. Routledge.
20.
LoeperW. V., MusangoJ. B., & DrimieS. (2016). Analyzing challenges facing smallholders and conservation agriculture in South Africa: A system dynamics approach. South African Journal of Economic and Management Sciences, 19(5), 747–773.
21.
MahajanV. (2015). Farmers’ producer companies: Need for capital and capability to capture the value added. In DattaS., MahajanV., RathaS., . (Eds), State of India’s livelihoods report 2014 (pp. 1–30). Oxford University Press.
22.
ManT. W. Y., LauT., & SnapeE. (2008). Entrepreneurial competencies and the performance of small and medium enterprises: An investigation through a framework of competitiveness. Journal of Small Business and Entrepreneurship, 21(3), 257–276.
23.
ManT. W. Y., LauT., & ChanK. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17(2), 123–142.
24.
McElweeG. (2008). A taxonomy of entrepreneurial farmers. International Journal of Entrepreneurship and Small Business, 6(3), 465–478.
25.
McElweeG., & BosworthG. (2010). Exploring the strategic skills of farmers across a typology of farm diversification approaches. Journal of Farm Management, 13(12), 819–838.
26.
MitchelmoreS., & RowleyJ. (2010). Entrepreneurial competencies: A Literature review and development agenda. International Journal of Entrepreneurial Behaviour & Research, 16(2), 92–111.
27.
National Academy of Agricultural Research Management (NAARM). (2022). FPOs in India: Creating enabling ecosystem for their sustainability. https://naarm.org.in/wp-content/uploads/2022/04/FPO-Policy-Paper.pdf
28.
National Bank for Agricultural and Rural, Development (NABARD). (2020). Farmer producer organizations (FPOs): Status, issues and suggested policy reforms [National paper 2019–20]. https://www.nabard.org/auth/writereaddata/CareerNotices/2708183505Paper%20on%20FPOs%20-%20Status%20&%20%20Issues.pdf
29.
NayakA. K. (2016). Farmer producer organizations in India: Policy, performance and design issues. In RaoN. C., RadhakrishnaR., MishraR. K., & KataV. R. (Eds), Organised retailing and agri-business (pp. 289–303). Springer.
30.
PhelanC., & SharpleyR. (2012). Exploring entrepreneurial skills and competencies in farm tourism. Local Economy, 27(2), 103–118.
31.
PrabhavathiY., KrishnaKishore, N. T. Siddayya, & RamachandraC. T. (2023). An analytical study on managerial competencies and business performance of farmer producer organizations (FPOs): A value chain perspective from India. Millennial Asia, 1–26. 10.1177/09763996231200180
32.
PrasadC. S., KanitkarA., & DuttaD. (2023). Farming futures: Reimagining producer organizations in India (Chapter 17, 1st ed.). Routledge.
33.
PrasadC. S. (2019). Farming as an enterprise: Ten years of FPO movement in India [State of livelihoods report 2019]. https://www.indiaspend.com/wp-content/uploads/2020/10/Ten-Years-of-FPO-Movemet-in-India.pdf
34.
RamappaK. B., & YashashwiniM. A. (2018). Evolution of farmer producer organizations: Challenges and opportunities. Research Journal of Agricultural Sciences, 9(4), 709–715.
35.
RoyH., JirliB., & MajiS. (2022). Training need assessment of board of directors of farmer producer companies: An application of Borich’s model. Indian Journal of Extension Education, 58(3), 113–119.
36.
SCOPE. (2014). Impact assessment tools for emerging agribusinesses. https://scopeinsight.com/how-we-do-it/assessments/
37.
ShahT. (1995). Liberalization and Indian agriculture: New relevance of farmer coopertaives. Indian Journal of Agricultural economics, 50(3), 488–509.
38.
ShahT. (2016). Farmer producer companies: Fermenting new wine for new bottles. Economic & Political Weekly, 51(8), 15–20.
39.
SinghS. (2021). Understanding performance and impact of producer companies: Cases studies across states and promoters in India. Centre for Management in Agriculture, Indian Institute of Management. https://www.iima.ac.in/sites/default/files/2022-11/2020-21_2.pdf
40.
SinghS. (2022). How can India’s farmer producer companies better serve small-scale farmers?International Institute of Environment and Development. https://www.iied.org/20856iied
41.
SinghS., & SinghT. (2013). Producer companies in India: A study of organization and performance [CMA Publication No. 246, pp. 1–126]. Centre for Management in Agriculture, Indian Institute of Management.
42.
SinghS., & SinghT. (2014). Producer companies in India: Organization and performance. Allied Publishers.
43.
WesterbergM., SinghJ., & HacknerE. (1997). Does the CEO matter? An empirical study of small Swedish firms operating in turbulent environments. Scandinavian Journal of Management, 13(3), 251–270.
