Examining Prevailing Internal Value Chain Risks in Horticulture Values Chains and its Management in Ethiopia: The Case of East Showa Tomato Producers

Abstract

Many studies found that value chain risk management plays great role to get competitive advantage in the chain. However, despite its role, managing prevailing risks in the chain was not studied in comprehensive way by including both internal factors. The sample size of the study was a total of 275 farmers, input dealers and market traders found in East Shawa zone.  The source of the data of the paper was both secondary and primary data in which the primary data was collected through questionnaires and interviews which was developed in English language and translated in local language. To achieve this objective, this study was divided in two stages: an exploratory and casual relationship testing. The findings of the study show that there is no efficient risk management program, there is no cooperation and coordination among value chain actors. In addition there is no design strategy to mitigate value chain risks and internal factor risks elements have medium importance in business activities to manage value chain risks. The multiple regression result show internal factors were significantly and positively influence effective risk management.