Digital technology adopted in agriculture value chains (AVCs) improves efficiency. There is a need to understand why some actors benefit more than others in AVCs and why this pattern at a global level is replicated locally.
To understand how existing frameworks can enhance the understanding of Digital for Development (D4D) associated with digital AVCs to achieve the following: Distribute power and economic value amongst actors in the AVC more equally; retain the identity of small-scale farmers and their sustainable practices; establish effective communication to confront asymmetric information and the lack of access to knowledge effectively; to enhance research, development and innovation.
The method used is a Systematic Literature Review (SLR). Numerous frameworks to implement digital AVCs were assessed and presented. These were then compared and aligned to policies and strategies that may be associated with D4D in South Africa. Ultimately, a framework that lists the institutional information, digital services and Information and Communication Technology (ICT) design architecture was proposed.
This article proposes a framework for the implementation of Provincial Agriculture Digital Innovation Hubs (PADIHs) and Extended District Agro-food Sustainable Knowledge Hubs (DASKHs). These institutions will support small-scale farmers to adopt digital technology in their AVCs.
When answering the research question, an alternate conceptualisation of a framework for digital AVCs adoption is made. This helps D4D practitioners and scholars who implement or research digital AVCs to better organise, conceptualise and conduct their research going forward. This research adds to the literature of D4D. It presents a better understanding of how small-scale farmers are empowered when adopting a digital AVC.
The United Nations (UN) 2030 Agenda sets out 17 Sustainable Development Goals (SDGs) (Sustainable Development Solutions Network [SDSN]
South Africa expects agriculture to create new jobs by 2030 using the National Development Plan (NDP). The plan advocates more usage of irrigated agriculture, cultivating land that is not fully utilised and making small-scale farmers’ land-reform projects commercially viable (National Animal Health Forum [NAHF]
Efficiency within AVCs can be improved when digital technology is integrated with agriculture development (Heeks
Policies to drive inclusive innovation and address inequality and social exclusion (Foster & Heeks
The understanding of the complexity of D4D caused by different constituencies with different viewpoints can be addressed using a multidisciplinary approach (Jokonya
The aim of this article, therefore, seeks to understand how existing frameworks can enhance the implementation of a digital AVC. Ultimately, it proposes a framework that can unmask strategies and policies to alter the underdevelopment in South Africa for small-scale farmers.
Most literature on digital AVC frameworks focuses on benefits that are not self-evident and may be elusive to achieve. A broad framework is needed that firstly assists the participation of small-scale farmers in existing agri-tech spaces through responsible innovation. Secondly, it was investigated whether such a framework can create more socially responsible innovation processes (Rose & Chilvers
Despite several studies on digital AVCs, there remains a knowledge gap between nations and social groups (Heeks
Considering the above, this study answers the question ‘What are the components of a framework that can unmask strategies and policies to implement digital AVCs for small-scale farmers in South Africa?’ The answer to this question presents a foundation for future research around the importance to facilitate innovation and training together with collaboration and participation.
When answering the research question, an alternate conceptualisation of a framework for digital AVCs adoption is made. This helps D4D practitioners and scholars who implement or research digital AVCs to better organise, conceptualise and conduct their research going forward. This article adds to D4D research in helping to understand how farmers can be empowered to adopt digital technology.
The structure of this article starts with ‘Research methodology’ section describing Cooper’s (
A SLR is a necessity for any academic research project to first collect and analyse relevant literature. This forms a sound platform for producing new knowledge. Previously, published significant studies are identified, selected and appraised to also identify knowledge gaps for further research (Webster & Watson
This literature review interprets the relative research that answers the question after it has been identified and evaluated.
Adoption of the systematic literature review.
This article aims to develop a conceptual developmental framework to facilitate digital technology adoption by small-scale farmers in AVCs. To answer the proposed research question ‘What are the components of a framework that can unmask strategies and policies to implement digital AVCs for small-scale farmers in South Africa?’ in this study, the SLR approach was adopted.
All the features and elements of the digital AVCs implementation concept are embraced by this research. It tries to understand the challenges of developing such a framework that can assist researchers and practitioners to address these challenges.
The keywords that defined the topic were not all precise. Thus, using traditional and electronic library systems, the titles, abstracts and documents of academic and industrial journals were reviewed and sorted. Related publications are still scattered as digital AVCs are a phenomenon that has emerged recently. The most dominant procedure to identify the most appropriate literature today is to review databases online rather than going through collections in libraries. Online databases accessed were Science Direct (Elsevier), JSTOR, Google Scholar, Nexus (NRF), Scopus and Wiley Online Library.
The keywords developed gradually during the extensive reading were not predetermined before the search. To obtain systematic and exhaustive results, attempts were made using other more specific search strategies. The following search strategies used for searching databases included ‘Boolean Logic’, ‘Parenthesis’, ‘Phrase Searching’, ‘Truncation’ and ‘Field searching’. The following criteria were applied in the search and selection of papers:
‘Digital development’ AND ‘Small-scale farmer’ OR ‘Agriculture value chains’.
‘Framework’ AND ‘Digital development’ OR ‘Agriculture value chains’.
‘Institutions’ AND ‘innovation hubs’ OR ‘digital development’.
‘Institutions’ AND ‘Digital development’ OR ‘framework’.
‘Agriculture value chains’ AND ‘institutions’ OR ‘Small-scale farmer’.
‘Digital development’ AND ‘framework’ OR ‘institutions’.
‘Small-scale farmer’ AND ‘Digital development’ OR ‘framework’.
By searching online databases, 51 papers were identified and 56 through other sources, which gave a number 107 papers identified. Additional papers were identified. Only 59 papers out of 107 identified by the SLR were relevant for analysis.
The Prisma flow diagram in
Prisma flow diagram illustrating the decisions made.
Literature was next evaluated, and the main reflections were summarised under the following thematic areas: the concept of a digital AVC, existing frameworks and government policies. The literature review further provides a summary of the components of such a framework such as the institutional information, digital services required and the Information and Communication Technology (ICT) design architecture. Thus, this review identified what is trending in the literature about frameworks used for implementing digital AVCs.
When summarising the main reflections, many challenges are experienced to adequately ensure that articles are investigated subjectively, objectively and methodically. An exception was made for industry publications because of the small number researched. This SLR ensures objectivity as it follows an organised approach with structured procedures. The formal steps recommended for an SLR by Cooper (
This section analyses, integrates and summarises the outcomes of studies in the key thematic areas. This includes the concept of a digital AVC, determining its importance to the development of small-scale farmers and an overview of existing policies to be considered.
To explore new opportunities for digital transformation in a business, Sealey (
To adopt a digital AVC, the power and use of information systems are used as a strategic value-adding decision-making tool. This is more than the simple technological support activity initially defined by Michael Porter’s value chain (Sealey
The digital economy provides digital-driven solutions to numerous agricultural challenges and unlocks opportunities to meet agricultural goals (Stugeon
Digital technology can lead to vertical integration which is the combination of two or more stages of production and/or distribution that are usually separate. The numerous considerations or benefits lead to enhanced innovation (Amadeo & Rasur
Digital agriculture value chain vertical integration and available technology.
A vertically integrated business model creates a legacy of long-term sustainable value for all stakeholders to participate in more segments of the value chain giving customers, communities and shareholders more benefits. Through vertical integration, stakeholders establish own suppliers, manufacturers or distributors rather than outsource them (Odeyale
Commercial AVCs are critical for assisting to alleviate poverty in developing countries (International Telecommunications Union [ITU]
Information about digital AVCs is not reaching smallholder farms in South Africa and this leads them to having a lack of knowledge about the subject (Department of Agriculture, Forestry and Fisheries [DAFF]
Government often fails to understand the reforms needed to overcome development constraints (Graham
Existing frameworks assist to adopt digital AVC platforms that can be used to build powerful innovation ecosystems with governance rules so that platform members create usefulness for each other (Constantinides et al.
The e-agriculture framework proposed by Awuor et al. (
Machine algorithms extract information that is relevant to a farmer from various sources to enrich the data centre and an information retrieval module retrieves data from the data centre. The framework governance structure includes a management layer, data layer that develops and maintains a data centre, whilst the information access layer meets information needs (Awuor et al.
Digital Innovation Hubs (DIHs) use digital platforms to catalyse the innovation process by bringing research and practice closer together. Through a network of DIHs and competence centres (European Innovation Partnership-Agricultural Productivity and Sustainability [EIP-AGRI]
Digital Innovation Hubs serve companies and start-up entrepreneurs to develop their businesses using digital technologies. Competence centres are the core element of the operations and provide technical expertise, facilities and infrastructure. Different forms of support are available at conception, development and production. Digital Innovation Hubs show a clear, practical and ‘hands-on’ approach (EIP-AGRI
Digital innovation hubs.
The Agro-Food Sustainability Knowledge Hub (Agro-Food) model is based on the concepts of sustainable supply chain management (SSCM) and corporate social responsibility (CSR) (Manikas, Malindretos & Moschuris
A community approach links small farms, agri-food SMEs with the globalised urban market. Value addition, distribution and consumption are integrated. This strengthens existence or develops new relationships that enhance a specific region in terms of the environment, economy and society (Manikas et al.
The Agro-Food hub considers a hierarchy of horizontally integrated communities with a local, regional, national or global reach. A regional community is built on farms within a region, or several local communities or a combination of both. Similarly, a national community is built on regional communities, local communities, individual farms or any combination. Cooperatives are an example of a local or regional community. Farmers’ associations or sectoral industries are examples of country-wide communities. Fair trade is an example of a global-level organisation (Manikas et al.
Digital adoption expands this model into the e-community concept that integrates rural business entities with urban-based small businesses (Manikas et al.
The above frameworks can assist in the development of a framework to adopt a digital AVC; however, it is important to understand government policy in South Africa that can influence the design. This is to avoid duplication of the structure while promoting trust amongst farmers and society. Thus, policies that can influence the adoption of this framework are investigated in the following section.
The New Growth Path (NGP) identified AVCs as drivers for economic growth, and based on this analysis, the Agricultural Policy Action Plan (APAP) outlines appropriate responses. Agricultural Policy Action Plan aligns NGP, the NDP and the National Industrial Policy Framework to translate high-level responses into tangible and concrete steps (DAFF
The 2018 Policy on Comprehensive Producer Development Support (PCPDS) guides and regulates the provision of support services to producers. The policy clarifies the roles and responsibilities of institutions that provide efficient and effective extension and advisory services, through participatory approaches (DAFF
As digital technology innovations are integrated with farming, it is important to know the development need of small-scale farmers and understand how to engage locally (Agri-Symposium
The Department of Telecommunications’ iKamva National E-Skills Institute (iNeSI) Bill (Government Gazette, Vol. 629, November 8, 2017, No. 41233) partners with stakeholders to develop future digital skills. The bill establishes iNeSI and collaborative laboratories for knowledge production, training and coordination (Ungerer et al.
Technology adoption in agriculture is a new phenomenon, thus, it is important to define the right institutions that exist or need to be created. Important actors, institutions and technology infrastructure that can enhance collaboration and participation must be identified to prevent duplication of effort. Firstly, the following subsection identifies the institutions that exist or needs to be created. Secondly, it looks at digital services that can be offered to small-scale farmers. Lastly, it describes the ICT design architecture needed to deliver these services.
Institutional theory enables an alternative analysis of the forms and design of organisations in all sectors. It describes organisations as local instantiations of wider institutions that comply with institutionalised prescriptions to gain legitimacy. This decreases uncertainty and increases the intelligibility of an organisation’s actions and activities (Berthod
Institutionalisation is evolutionary, and in the beginning, it is determined by existing organisational structure and modalities of operation (Anandajayasekeram
Institutionalisation for this framework is aligned to the District-Centred Development (DCD) model adopted by the South African government. The model secures maximum coordination and cooperation amongst the national, provincial and district spheres of government. It acts in partnership with civil society at the district level to fast-track service delivery (Department of Monitoring and Evaluation [DPME]
A community-based Agro-Food Knowledge Hub.
Institutional mechanism for implementing the Policy on Comprehensive Producer Development Support.
For institutionalisation, the systems’ approach together with participatory processes is emphasised. This is undertaken in two phases, a preparatory phase and an institutionalisation phase (Anandajayasekeram
In South Africa, iNeSI forms partnerships that maximise impact, avoid duplication and maximise the use of infrastructure and resources. iNeSI identifies digital gaps across industry, populations and geography through research.
Provincial knowledge production and coordination Colab.
The iNeSI distributive model has a physical presence in each of the nine provinces to engage in digital skills (iNeSI
Thus, this article proposes the creation of PADIHs that will collaborate with iNeSI Colabs on a provincial level. Using the DOI principles, competence centres of PADIHs provide access to infrastructure and technology platforms. This supports innovation through experimentation, fabrication of new products and demonstrates best practices by technologies (EIP-AGRI
Rural poverty, agricultural production and environmental protection are all intertwined concerns for international development. To manage the inter-relationships and interdependencies that contribute to this complexity, sustainable natural resource use and poverty reduction need to be promoted (Campion
Using vertical integration to create alternative sustainable channels of distribution, the Agro-Food Hub (see
The DDM prioritises local procurement of services and goods to develop, support and promote local entrepreneurs and create an enabling environment for economic development (DPME
A holistic integrated Agro-Food Sustainability Knowledge Hub.
District Agro-food Sustainable Knowledge Hubs promote grassroots innovation amongst SMEs when adopting digital technology. Power is shared between stakeholders using ‘distributive justice’ (distribution of value along the AVC) and ‘procedural justice’ (management of processes and relationships). To achieve supply chain ‘justice’, DASKHs unlock the full potential of SMEs by facilitating for them to participate in making decisions (Manikas et al.
Provincial Agriculture Digital Innovation Hubs network with DASKHs at a district level in the AVC to develop an innovation ecosystem and support SME agri-businesses in their digital transformation. Thus, the institutional framework is aligned with the principles of DOI, vertical integration and Carroll’s CSR pyramid. It supports the DCD model and PCPDS in collaboration with the iNeSI.
Bencherki (
Institutional arrangement for a digital agriculture value chain.
District Agro-food Sustainable Knowledge Hubs provide a strategic collaborative network that involves producers, transport carriers, wholesalers, retailers and even consumers. These also network between AVC partners and other sectors such as tourism and research institutions. District Agro-food Sustainable Knowledge Hubs transform challenges into new opportunities by developing farmers’ sustainability through innovative thinking value creation networks (Manikas et al.
After proposing an institutional framework and identifying the roles of different stakeholders, the digital services needed to be developed for small-scale farmers are suggested in the following subsection.
A new agriculture revolution is being unleashed by digital tools that improve communications across AVCs (Campion
Agriculture sector cluster of digital services.
Digital platforms automate a variety of management functions to reduce transaction costs and facilitate the flow of knowledge, resources and finance to agribusinesses across the AVC (Campion
According to Baker (
The challenge is that institutional theory has traditionally been concerned with stability, whilst technologies are often associated with rapid and sometimes disruptive societal and organisational changes. We need to understand these phenomena that are not so well explained by economic-rationalist models (Sæbø
Digital agriculture value chain architecture.
The sensing layer collects the data input from the system environment to capture and respond to various environment stimulations. The communications network layer provides district-wide coverage for wireless broadband networks, internet access to other districts and international internet transmission. The data layer transports data between stakeholders and centralised servers in data centres (ITU & FAO
Information facilitation and data sharing must have adequate safeguards of information and protection of intellectual property rights (Kanoktanaporn et al.
The application layer service diverse requirements and information needs enable automated decision-making and alerts to the digital AVC (ITU & FAO
Proposed framework for the adoption of a digital agriculture value chain.
A digital AVC needs to be secure, reliable and resilient against vulnerabilities. This includes hackers, political activism, unintentional damage and natural disasters. The entire system’s technical foundation is built around the security infrastructure. This provides security functions such as disaster recovery, emergency monitoring, key security and identity management (ITU & FAO
There is a need of research and development (R&D) to show and ensure that new technologies are feasible and trustworthy (Campion
The need for the agriculture sector to increase output with fewer resources creates the opportunity for digital technology to continue to facilitate and influence innovations in farming (Ungerer et al.
Small-scale farmers’ importance in emerging markets is recognised globally and increased collaboration in Africa can lead to more integration across AVCs (Ungerer et al.
The three critical elements in innovation include the knowledge generated via research, the ability to translate the knowledge into real products and services, and finally, the ability to market through commercialisation, communication and service delivery (Anandajayasekeram
Innovation is where an invention is used successfully in economic terms. The four sets of activities involved in innovation are invention, translation or realisation, commercialisation and adoption. The invention can be new concepts, products, processes derived from individuals, scientific research or a combination of existing knowledge (Anandajayasekeram
The four dimensions that affect the level of institutionalisation of any structure are, namely, autonomy, adaptability, complexity and coherence. This determines the transformation that structures must make to survive and be able to influence their environment (Peters
South African small-scale farmers need equal access to funding and opportunities as big commercial farmers. The first requirement is to ensure that small-scale farmers are commercially productive and produce for a profitable market (Ungerer et al.
A user-centred design of agricultural technologies will ensure uptake and scale of use (Campion
Going forward, small-scale farmers will have to increasingly collaborate beyond the agriculture sector to adjacent sectors. To facilitate successful collaboration, a clear value must be added to the operations of all stakeholders and the participant’s objectives must be culturally compatible, aligned and not contradict each other. The regulatory and legal requirements must allow for clear governance and strong leadership to facilitate ongoing open and honest communication.
South Africa needs to prevent a digital divide outcome in the agricultural sector. Government must support small-scale farmers to unlock the sector’s full digital potential (Ungerer et al.
To address this challenge, this study reviewed the literature on different frameworks that can assist in the adoption of digital AVCs. After investigating policies and strategies implemented in South Africa, a framework for the adoption of a digital AVC was proposed in ‘Discussion’ section. The framework suggests the implementation of DASKHs aligned with DOI principles, supported by PADIHs aligned with CSR and vertical integration takes into account the above concerns to assure an impact at a district, provincial and national level. District Agro-food Sustainable Knowledge Hubs can develop and scale up the sustainability of small-scale farmers at a district level to have a global reach. Farmers control their economic strategies and retain their own independent identities. At the same time, farmers act collectively at different levels of integration and collaboration with a shared strategic agenda. Provincial Agriculture Digital Innovation Hubs provide digital services to the agriculture industry with an emphasis on SMEs. These further provide brokerage services, access to finance, market intelligence, training and education to become an incubator and mentoring services to new start-ups.
In summarising developments, this research identified several positive trends where digital adoption redefines small-scale farmers’ AVCs, to become an integrated operational model within the framework of sustainability. It helps change the unequal terms of the current AVC that is controlled by a few globalised distributors. Planned cooperation and the collective use of knowledge and resources can lead to a competitive advantage.
Government and the financial sector must encourage and support agri-entrepreneurs and AgTech proposals that develop small-scale farmers. Agri-entrepreneurs could collaborate in digital AVCs through advisory services and analytic data services (Ungerer et al.
In general, there is a need for an agricultural digital services sector that creates opportunities that can contribute to the commercial sustainability of small-scale farmers (Ungerer et al.
National agricultural development strategies must prioritise smart agriculture through initiatives of supporting early adopters (Kanoktanaporn et al.
To save cost on physical and electronic infrastructure, planning and sharing from the outset are the key. Existing fixed and wireless communication networks should be exploited, whilst sensors can be added to gather data (ITU & FAO
Cooperatives and farmers’ associations have an important role in promoting the awareness and adoption of digital technologies. They are the right institutions to raise the voice of small-scale farmers during the definition and prioritisation of the PADIHs services. Rural development agencies connected to public authorities provide feedback in the design of certain PADIH services.
The study tried to understand the frameworks used for implementing digital AVCs. Past research was critically consolidated and examined to understand the contributions. It investigated the different components and presented a framework for the implementation of a successful network of PADIHs and DASKHs. On the other hand, several limitations of this study are as follow:
Before the analysis, databases are searched separately using a SLR methodology. Using a different approach to collate these documents could have led to better results.
The concept of digital AVCs is in its early stage of development and may need additional dimensions that should be considered with implementation.
Academic journals or industrial reports are the main sources of these SLR findings. The findings of this review could have been enhanced if the sources had been expanded.
Keywords were used to search these databases that deduced these findings. Because of the sensitivity, if different keywords were inputted into the search studies, we could have arrived at significantly different results.
Critical to small-scale farmers is the development of their digital AVC to increase their competitiveness. Thus, the framework focuses on sustainability by reaching more markets. The proposed framework promotes an access to new resources and can be a strong motivation for policymakers.
Future research needs to investigate critical factors that lead to the effective application of such a framework. This would require policy intervention and supportive legal frameworks that seek PPPs to maximise digital AVC adoption by small-scale farmers for their sustainability.
New data about impacts on the environment are needed to develop more sustainable and competitive strategies. Small-scale farmers could use information systems as a support to become more sustainable and competitive. Research needs to be performed regarding the economic impacts and sustainability of DASKHs.
Conclusions and recommendations are drawn of how DASKHs supported by PADIHs can create alternative AVCs that contribute to the sustainability of small-scale farmers. The proposed framework shows new ways to address financing and knowledge transfer. Through entrepreneurship, small-scale farmers can develop new business models that can increase their income. To enhance farmers’ innovation capacities and increase their competitiveness, the following questions are proposed:
How do we ensure more equal distribution of power and economic value amongst all the involved actors in the AVC?
How do we retain sustainable practices and small-scale farmers’ identity when adopting digital technology?
How do we effectively confront small-scale farmers’ lack of knowledge and asymmetric information in AVCs?
How do we enhance continuous R&D through innovation initiatives?
This article and the research behind it would not have been possible without the exceptional support of my supervisor, Prof. O. Jokonya.
The authors declare that no competing interest exists.
H.J.S. contributed to the conceptualisation, design and implementation of the research. He performed the visualisation, investigation, formal analysis of the results and the writing of the original draft manuscript. O.J. contributed to the conceptualisation, design and supervision of this article.
We hereby certify that the Humanities and Social Science Research Ethics Committee of the University of the Western Cape approved the methodology and ethics of the mentioned research project HS 20/3/32.
This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.
Data that support the findings of this study will be provided upon reasonable request from the corresponding author, H.J.S.
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any affiliated agency of the authors.