Integration of small-scale farmers into innovation management within contract farming companies in developing countries

Ravelosaona, Tojonirinarisoa Nomenjanahary (2023) Integration of small-scale farmers into innovation management within contract farming companies in developing countries. Working Paper. CIMR, Birkbeck, University of London, London, UK.

Abstract

In pursuing competitiveness and growth, contract farming companies recognise the imperative of innovation. However, innovating with small-scale farmers, who represent the majority of contractors in developing countries, necessitates a nuanced understanding of their limited resources, capabilities, and complex psychosocial characteristics. This paper focuses on the strategies employed by contracting companies, with a particular emphasis on the African context, to effectively manage innovation while integrating small-scale farmers into their operational practices. Case studies conducted with representatives from selected companies serve as the primary method for gathering evidence, which is subsequently analysed using thematic analysis. The findings indicate that contracting companies regard farmers as a fundamental source of innovation signals. In selecting innovative ideas, commonly employed criteria considering farmers are problem-solving potential, affordability, compatibility, novelty, and origin. Participatory approaches, data-driven decision-making, and tailored strategies of innovation adoption and diffusion mark the implementation stage. Continuous feedback collection from farmers fosters a dynamic, adaptive, and iterative innovation cycle. Significantly, the results offer a fresh perspective on the connection between contracting companies and smallholders in the sphere of innovation, providing valuable practical insights into the contract farming field.

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