Racial group differences and export market access challenges in agricultural value chains and supply networks of SMEs in South Africa

Abstract

Although previous studies provide an insightful and categorised nature of internal and external export barriers experienced by agricultural SMEs in general; there is little, if any, strategic insights on the racial nuances in value chain barriers for most agricultural SMEs that target global export markets. This study posits that export barriers are not uniform and differ based on race and the context in which the agricultural SME is based. Hence, we specifically explore the nature of export barriers per race within the agro-value chains in South Africa and juxtapose these with the dynamic market and historical conditions of the South African market environment. In this multi-case study, we focused mainly on the differences between black and white-owned agricultural SMEs riding on their different supply networks’ capabilities to navigate the export barriers they face. The findings serve to develop seminal knowledge to enhance export capabilities and opportunities for minority groups globally and more importantly to highlight the underlying drivers for racial imbalances in agro-supply chains. Although the findings are geographically skewed to South Africa, the market dynamics are relevant across countries with similar demographic characteristics and provide a platform for future research.