Do Supply Chain and Institutional Factors Impact Smallholders' Livelihoods? An SEM Perspective

Being the second-largest producer of horticultural products, the sector in India is experiencing supply chain issues. Thus, the primary objective of this research is to use the resource curse and cluster theories to assess how the horticulture supply chain affects the smallholders' livelihoods. Independent (Horticulture Supply Chain Efficiency- HSCE), dependent (Smallholders' Livelihood Development- SLD), and moderating (Farmers Producer Organization Intervention- FPOI) variables are all included in the analysis. Using a combination of literature reviews, expert interviews, and focus groups, the researcher developed a preliminary research framework and measuring instruments for each latent construct. The instrument has been validated using face and language validation, followed by a pilot study and main study with 405 responses. Both SmartPLS 4.0 and SPSS 25.0 have been used for that purpose. This study found both HSCE and FPOI directly impacted SLD, explaining 65% of the variance, mostly by SC collaboration, followed by agricultural credit, SC infrastructure, and FPO. However, contrary to the theoretical part, the moderating effect was found to be negatively significant. This indicates the immaturity of FPOs to amplify these factors, which can draw the attention of policymakers to make necessary arrangements.