Antecedents of sustainable agricultural supply chain financing for achieving food security in resource-constrained developing economies: A complex adaptive systems theory perspective

Abstract

The aim of this research is to examine what antecedents of supply chain financing (SCF) should be overcome to ensure that the agricultural supply chain from preplanting to postharvesting generates enough food to achieve sustainable food security in developing countries. Drawing from complex adaptive systems (CAS) theory, we develop and test a model of how a prospective and challenging financing scheme navigates complex social and repayment systems to achieve sustainable SCF. The results of the study show that a challenging financing scheme must navigate complex social and repayment systems to achieve sustainable SCF, while a prospective financing scheme even though it shows a positive influence on sustainable SCF, its effect is higher when it is able to navigate these. The study hence concludes that for agricultural SCF schemes to lead to sustainable food security, they must be accessible and appropriate to the needs of the community, overcome default risk and cumbersome financial arrangements and be able to navigate the complex social and repayment systems. The study recommends that financing schemes should establish proximity to farming communities and engage farmers to determine appropriate funds for different stages among others.