Assessing the key drivers of success for farmer producer companies in an Eastern Indian state

Abstract

Purpose – This study conceptualizes Farmer Producer Companies (FPCs) as institutional mechanisms for promoting sustainable smallholder agricultural systems. It undertakes a comparative analysis of FPCs at different growth stages and functional domains to assess their effectiveness, dynamism and sustainability. Addressing the limited research on FPC performance across lifecycle stages, the study identifies key drivers of their success and stability to inform future policy advocacy for strengthening FPCs as resilient and inclusive farmer organizations. Design/methodology/approach – An exploratory sequential research design was employed. The qualitative phase explored organizational performance through focus group discussions with 8–10 Board of Directors from each selected FPC, followed by quantitative data collection to validate the relationships identified. The study covered eight FPCs across five districts of Bihar, India, representing diverse operational histories in agriculture and horticulture. Stratified random sampling was used based on lifecycle stages (1–3 years, >3–6 years, >6 years and registered but nonfunctional), with 40 farmer-members selected from each FPC, resulting in a total sample of 320 respondents. Findings – FPCs with longer operational duration (>6 years) exhibited higher levels of effectiveness, dynamism and sustainability across economic, social, marketing and environmental indicators. Mid-stage FPCs (3–6 years) also outperformed nascent ones, highlighting the role of organizational maturity in sustainable performance. Research limitations/implications – One limitation of this doctoral research is the lack of funding, which restricts the ability to expand data collection efforts, access specialized tools or conduct extensive fieldwork. Without financial support, the research scope is confined to more affordable methods and resources, potentially limiting the depth of analysis. Furthermore, the study is geographically limited to a single country in the Eastern region, which may constrain the broader applicability of the findings. The specific context of this country, including its unique economic and political landscape, influences the research outcomes, potentially limiting the transferability of conclusions to other regions or global contexts. Originality/value – This study contributes to the limited body of knowledge on FPC lifecycle performance by integrating organizational effectiveness and sustainability perspectives, offering an evidence-based frameworkfor policy interventions to.