Exploring the applicability of a sustainable smallholder sourcing model in the black soybean case in Java

Abstract

Food and agribusiness multinational enterprises are redesigning their sourcing strategies to tap into the underused food production potential of small-scale farms in a way that improve farmers’ livelihood. The problem is that current widely applied sourcing models do not include improvement of livelihood of the producers/farmers. The present article explores the applicability of a sustainable smallholder sourcing model with a list of critical success factors, in which business objectives and corporate social responsibility perspectives are combined. To this end, the black soybean supply chain in Java/Indonesia is studied. It was found that the black soybean case can be conceptualized by the sourcing model. Most of the critical success factors were present, but also some differences were identified. The differences enable to fine-tune some critical success factors. The sustainable sourcing model can help in (re-)designing sourcing strategies to secure sustainable and more equitable supply from small-scale farmers from a business perspective.