New business models and systemic change in the Malawian maize and legume sector
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New business models and systemic change in the Malawian legume and maize sector Dr. Domenico Dentoni Principal Investigator, Global Centre for Food Systems Innovation Assistant Professor, Management Studies Group, Wageningen University
Transcript of New business models and systemic change in the Malawian maize and legume sector
New business models and systemic change
in the Malawian legume and maize sector
Dr. Domenico Dentoni
Principal Investigator, Global Centre for Food Systems Innovation
Assistant Professor, Management Studies Group, Wageningen University
Project Example: Malawi (started in 2013)
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Small landlocked country, growing average 5%/year (2010-15), yet slower than its neighboring giants
Project Example: Malawi (started in 2013)
Vision: Trigger change to tackle poverty, food insecurity and
deforestation… starting from our partnerships with universities
and businesses, NGOs, governments. Challenges:
What are the emerging business models that have potential to
change Malawian legume/maize sectors?
Can we co-develop stakeholders’ and students’ competencies
that matter in local models?
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Research in 2013-14: Map the maize and legume systems:
Interrelatedness of problems/issues over time (systems
dynamics, 2010-2014)
Interrelatedness of actors and associated resources over
time (value network analysis, 2010-2014)
Two-round interviews, focus groups, workshop with
stakeholders in 39 organizations
2010-2014: Five persisting interrelated issues
Uncoordinated information systems
for farmers
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Weak public monitoring and
auditing on quality standards
Weak credit and input markets
for farmers
Poor infrastructure systems
(road, storage, etc.)
Problems with farming as business
and cooperative formation
Entangled set of
market failures
and public
governance
failures
2010-2014: Partnerships to tackle these issues
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Supply chain actors: maize
traders, processors
Development
agencies and NGOs
Farmers and farmer
organizations
Government agencies
World Bank,
International
Monetary Fund
Banks
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2014: Zooming into the map new business models
STORAGE
BUSINESS
MODELS: rapidly
growing, but are
farmers included?
INFORMATION
BUSINESS MODELS:
innovative and IT-
based, but financially
sustainable?
EXTENSION
BUSINESS
MODELS: lagging
behind: financially
viable? Effective?
Key findings
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Emerging business models: 1) are strongly interdependent among each other; 2) need coordination beyond
their supply chain and own business model; 3) yet struggle to coordinate beyond their closest partners.
INFORMATION
BUSINESS
MODELS
EXTENSION
BUSINESS
MODELS
STORAGE
BUSINESS
MODELS
FINANCE
BUSINESS
MODELS
QUALITY
CONTROL
BUSINESS
MODELS
SEED BUSINESS
MODELS
Learning from Malawian business models (2010-2015)
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What can we learn from this Malawian case and deliver to our agribusiness partners and students?
Strategy
Institutional economics
Entrepreneurship
- Distribution of tasks/rights- Formal/informal mechanisms- Related to institutional framework
- Multiple resource interdependency with partners within business models
- Complementarity and competition
- Innovation and entrepreneurship at multiple levels
Complex Adaptive Systems:- Self-organizing- Interdependent across
partnerships- Non-linear
A systemic change view on business models in ag-food
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What are the skills, behaviors and capabilities needed to
1) coordinate within and across business models and
2) rapidly re-organize in changing environment?
Strategy
Institutional economics
Entrepreneurship
Complex Adaptive Systems
(Peter Senge, Otto Scharmer, Kathleen Eisenhardt)
What is the organizational structures needed to:
1) coordinate within and across business models and
2) rapidly re-organize in changing environment?
What are the incentives and interdependencies needed to:
1) coordinate within and across business models and
2) rapidly re-organize in changing environment?
?
??
Open questions that we are keen to work with you in our next projects:
Next steps in our Malawian project
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What are the skills, behaviors and capabilities needed to
1) coordinate within and across business models and
2) constantly re-organize in non-linear change contexts?
Entrepreneurship as a process
Complex Adaptive Systems
On-going goals: Profiling competencies and skills
needed to operate in local business models with an
awareness of implications for the entire system stimulating
aware actions with students and local
partners through the use of “living cases”
?
Conclusion: Global Center for Food Systems Innovation
Two points to make a difference in tackling problems in ag-food:
• Stimulating stakeholders’ systems thinking action
• Developing organizations that effectively sense, learn and
change based on stakeholders
Thank you and
looking forward to
questions and ideas
for collaboration
Dr. Domenico Dentoni
Research sponsored by the Global Center for Food
Systems Innovation, Wageningen University in
partnership with USAID, Michigan State University
and Lilongwe University of Agriculture and Natural
Resources (LUANAR)
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