Strengthening managerial acumen and strategic leadership in farmer producer companies:

Abstract

Purpose – Smallholder farmers in India face persistent challenges in accessing inputs, markets and information. Farmer producer companies (FPCs) have emerged as key institutional mechanisms to address these gaps. However, the sustainability and performance of FPCs are critically linked to the managerial competencies of their leadership, particularly the Board of Directors (BODs). This study aims to assess the managerial competencies of FPC leaders and examine how these competencies influence the functional performance of FPCs in Bihar. Design/methodology/approach – The study evaluated 100 BOD members from eight FPCs in Bihar using the 5-Dimensional Managerial Competency Battery (5D-MCB), which assesses communication, strategic decision-making, goal-setting, leadership and lifelong learning. BOD members were categorized as Novice (18–30), Professional (31–42) or Expert/Pioneer (43–54). Competency levels were analysed across FPCs at different stages of development – nascent (53 years), emerging (>3–6 years) and mature (>6 years) – to identify variations and gaps. Findings – Results showed that well-established FPCs recorded a 43% competency index compared to only 26% among non-functional FPCs. Significant differences in managerial competencies were observed across FPC life-cycle stages, with mature FPCs demonstrating relatively higher performance. However, critical deficiencies were identified in strategic leadership and adaptability. These gaps highlight the importance of strengthening managerial and strategic capabilities for improved governance and operational effectiveness. Originality/value – The study provides one of the first empirical assessments of managerial competencies among FPC leaders in Bihar. By linking leadership skills to institutional performance, it offers actionable insights for policymakers and development agencies to design targeted capacity-building and governance interventions that can enhance FPC sustainability and support smallholder farmers’ livelihoods.