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The influence of value chain integration on performance: an empirical study of the malt barley value chain in Ethiopia

In: International Food and Agribusiness Management Review
Authors:
Mulugeta D. Watabaji Staff member, College of Business and Economics, Haramaya University, P.O. Box 138, Dire Dawa, Ethiopia; PhD student in the Division of Agri-food Marketing and Chain Management, Department of Agricultural Economics, Faculty Bioscience Engineering of Ghent University, Coupure Links 653, 9000 Ghent, Belgium

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Adrienn Molnar Postdoctoral researcher, Department of Agricultural Economics, Faculty of Bioscience Engineering of Ghent University, Coupure Links 653, 9000 Ghent, Belgium; staff member Hungarian Academy of Sciences, Institute of Economics

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Manoj K. Dora Post-doctoral researcher, Division of Agri-food Marketing and Chain Management, Department of Agricultural Economics, Faculty Bioscience Engineering, Ghent University, Coupure Links 653, 9000 Ghent, Belgium

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Xavier Gellynck Professor and head of the Division of Agri-food Marketing and Chain Management, Department of Agricultural Economics, Faculty of Bioscience Engineering, Ghent University, Coupure Links 653, 9000 Ghent, Belgium

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Open Access

The purpose of this study is to examine the interplay between value chain integration dimensions and value chain performance along the malt barley value chain in Ethiopia. The analyses were based on survey data sets obtained from 320 farmers and 100 traders and qualitative interview responses captured from sixty-two key informants selected from members of the chain. The structural equation modelling technique was employed to seek answer for the question of how value chain integration dimensions are related to performance. The results of the analyses showed the existence of positive relationships between coordination of activities and performance; between joint decision-making and performance at farmers-cooperatives interface; and between commitment towards long-term relationships and performance at farmers-traders interface. The study has made important empirical contributions in areas of value chain integration and performance and their interplays within the context of the studied malt barley value chain. The key findings of the study make important policy implications for agribusiness value chains in the developing countries. The study would open a venue for robust investigation based on a wider database from various agribusiness chains in Ethiopia or even beyond, for better validation of the findings.

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