Author(s): Arthur Mapanga
This paper sought to develop a value chain governance framework to enhance the participation of the developing countries’ SMEs and other economic agents in the current non-inclusive global value chains. Due to their reliance on spot market transactions, SMEs in development countries continue to face economic prejudice in global markets. There is therefore a need for a value chain governance framework to further promote the upgrading of developing countries’ SMES in the global value chains. First to be done was a comprehensive literature study on the topic of value chain governance to unravel the major determinants of value chain governance. Second, a questionnaire was used to collect the data from a purposive sample of 332 managers working in the maize, cotton, soybean and tobacco value chains in Zimbabwe was employed to confirm the specific factors determining effective governance in a developing country’s value chains. The study confirmed that governance in developing countries’ value chains depended on the quality of collective action regimes, lead firms and trust present in the value chains. These factors have some important implications regarding any attempts by the managers and policymakers aimed at improving the operational efficiencies as well as deepening the integration of the developing countries’ SMEs within the value chains to ensure shared development and prosperity across the world. The study also outlines a transdisciplinary framework that can be used to enhance governance in developing countries’ value chains.