Governance of intersecting value chains in an era of polycentric trade: the case of Kenyan fresh fruit and vegetables

Abstract

Domestic value chains (DVCs) led by retailers within the global South often overlap with global value chains (GVCs) as well as domestic arm’s length markets. DVCs incorporate some private governance, but we know little about the role of public governance. Based on analysis of Kenyan fresh fruit and vegetables, we ask: How is the power (or ability) of lead firms to govern producers being reshaped by the increased complexity of polycentric trade in the Kenyan horticultural sector? We reveal constraints to lead firms’ ability to directly exercise bargaining power; and shifts towards institutional power in a context of polycentric trade.