ENHANCING SMALLHOLDER AND RETAILER COMPETITIVENESS THROUGH EFFICIENT AND DYNAMIC VEGETABLE SUPPLY CHAINS IN CAMBODIA

Abstract

The study examined strategies for improving the competitiveness of smallholder farmers and retailers through efficient and dynamic vegetable supply chains in Cambodia. The study was motivated by persistent challenges relating to fragmented marketing systems, inadequate post-harvest infrastructure, weak governance coordination, and limited market integration, which constrain the performance of the vegetable sector. The study was grounded in Dynamic Capabilities Theory, which explains how organisations and supply-chain actors develop, integrate, and reconfigure resources and capabilities to respond effectively to changing market conditions. The study was conducted using a mixed-methods research design that consisted of a cross-sectional survey of 420 smallholder vegetable producers, 85 key informant interviews, and six focus group discussions. The quantitative data were analysed using descriptive statistics, multiple regression, ANOVA, and Structural Equation Modelling (SEM), while the qualitative data were analysed thematically. The results show that the respondents strongly agreed that efficient supply chains are important in improving competitiveness, household income, and retailer profitability. Supply-chain efficiency and governance coordination explained 66.3% of the variation in competitiveness (R2 = 0.663, R = 0.814), according to regression analysis. The regression model was statistically significant (F = 118.463; p < 0.001). Supply-chain efficiency had the strongest impact on competitiveness (β = 0.603, p < 0.001). Governance coordination improved supply-chain performance significantly (β = 0.384, p < 0.001). The SEM also revealed a significant positive effect of supply-chain efficiency on competitiveness (β = 0.684, p < 0.001) and governance coordination on supply-chain performance (β = 0.592, p < 0.001). The study found that efficient logistics, collaborative governance, digital innovation, market integration, and better post-harvest systems are essential to boost competitiveness. It is recommended that Cambodia develop resilient and sustainable vegetable supply chains through strengthening agricultural cooperatives, expanding cold-chain and storage infrastructure, promoting digital market information systems, improving stakeholder collaboration, and increasing government investment in supportive policies and rural infrastructure.