Value Network Configuration and Competitiveness of Emerging Agricultural Cooperatives in the Central Free State of South Africa

Abstract

Introduction: While many emerging agricultural cooperative firms in the Central Free State of South Africa remain inclined to progress into mainstream markets, conditions of market exclusion continue to dampen their predisposition to exploit competitive opportunities. Since cooperatives determined to reach their full market potential must contemplate competitive positions in their value networks, the business strategy literature on cooperative firms foregrounds the theoretical assertion that the value network configuration significantly influences competitiveness. Purpose: This conceptual study challenges the assertion that emerging agricultural cooperative firms’ value network configuration significantly influences their competitiveness. Methodology: Drawing on the transaction cost economics theory and a review of literature, the study sought to address the core constructs that constitute the claims, establishing, rather, that sustained competitive performance has a direct influence on the competitiveness of emerging agricultural cooperative firms. Findings: The findings suggest sustained competitive performance as the principal determinant of competitiveness and a function of the cooperative firms’ ability to navigate through transaction interaction dynamics and configurational influences. Originality: The study links industry structure and competition intensity to configurational influences, manifesting in various drivers and indicators determining sustained competitive performance, a novel concept underexplored in cooperative entrepreneurial literature.