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\hypersetup{pdftitle={An Extended Concept of Value Chain Governance and its Relation to Upgrading: a Study Case of Dairy Value Chain in Indonesia},pdfauthor={Daniel Setiawan Nugraha, Wolfgang Bokelmann},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Agricultural products, developing countries, governance, rural development, upgrading, value chain},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{An Extended Concept of Value Chain Governance and its Relation to Upgrading: a Study Case of Dairy Value Chain in Indonesia\footnote{\textbf{Contact Address:} Daniel Setiawan Nugraha, Humboldt Universität zu Berlin, Department of Agricultural Economics, Jl. Frambos 1 Perum Jambusari Indah, Sleman, Indonesia, \mbox{e-mail}: \email{danielnugraha@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Daniel Setiawan Nugraha$^{1}$, Wolfgang Bokelmann$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Humboldt Universität zu Berlin, Department of Agricultural Economics, Indonesia}}}
\item[]{\small{\textit{$^{2}$Humboldt-Universität zu Berlin, Dept. of Agricultural Economics and Social Sciences, Germany}}}
\end{itemize*}
\index[author]{Nugraha, Daniel Setiawan}
\index[author]{Bokelmann, Wolfgang}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Value Chain (VC) approach has been widely applied in developing countries to promote economic development with particular emphasis on upgrading small and medium enterprises (SMEs) and rural producers. Many cases have shown that VC upgrading is strongly determined by the prevailing governance structure. However, hitherto the discussion on VC governance has been limited mainly on coordination, regulation, technology, and power; whereas socio"=cultural aspects, albeit influential in determining individual behaviour, are mentioned en passant or totally neglected. Thus, this paper calls for the extension of governance concept by introducing a wider institutional perspective incorporating regulative, normative, and cultural"=cognitive elements to portray a more realistic picture of the interaction between VC operators. Then, it applies the extended concept in a case study of dairy VCs in Indonesia, comparing the governance of successful and unsuccessful upgrading cases. Data were collected from the documentation of and author's own experiences involved in a practical VC promotion project as well as additional observations and interviews. The causalities between VC-governance and upgrading are explained using the qualitative approach of macro"=micro-model to accentuate the role of VC operators, their perception, and selected action in the upgrading processes. The results show that regulations and their effective enforcement are necessary; but also social relations, values, and norms, as well as orientation, common practices, and habit exert strong influences on determining the behaviour of and thus the interdependency between VC operators. Hence, further VC researches in similar context, i.e. rural areas where socio"=cultural aspects are more influential, are to systematically integrate an extended concept of governance into the analysis in order to be able to explain the link between VC governance and upgrading as well as to provide technical recommendation on how to facilitate upgrading processes.}

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\noindent \textbf{Keywords:} Agricultural products, developing countries, governance, rural development, upgrading, value chain
\index[key]{Agricultural!products}
\index[key]{Developing countries}
\index[key]{Governance}
\index[key]{Rural!development}
\index[key]{Upgrading}
\index[key]{Value chain}
\end{document}