Agriculture value chains (AVCs) have experienced unprecedented disruption during the COVID-19 pandemic, with lockdowns and stringent social distancing restrictions making buying and selling behaviours complex and uncertain. This study aims provide a theoretical framework describing the stakeholder behaviours that arise in severely disrupted value chains, which give rise to inter-organisational initiatives that impact industry sustainability.
A mixed-methods approach is adopted, in which uncertainty theory and relational governance theory and structured interviews with 15 AVC stakeholders underpin the initial conceptual model. The framework is empirically validated via partial least squares structural equation modelling using data from an online survey of 185 AVC stakeholders based in India.
The findings reveal that buyer and supplier uncertainty created by the COVID-19 lockdowns gives rise to behaviours that encourage stakeholders to engage in relational governance initiatives. Progressive farmers and other AVC stakeholders welcome this improved information sharing, which encourages self-reliance that positively impacts agricultural productivity and sustainability.
The new framework offers farmers and other stakeholders in developing nations possibilities to sustain their AVCs even in dire circumstances. In India, this also requires an enabling ecosystem to enhance smallholders' marketing power and help them take advantage of recent agricultural reforms.
Research is scarce into the impact of buyer and seller behaviour during extreme supply chain disruptions. This study applies relational governance and uncertainty theories, leading to a proposed risk aversion theory.
