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3.4.1. Industry Pathway

An industry pathway is a management tool that integrates the incremental behavior changes required to make an industry more competitive with the project process.

3.4.2. Knowledge Management System

Developing a knowledge management system that can deliver both the reporting requirements and real time knowledge of behavior change to inform resource allocation decisions is essential and requires a combination of data capture techniques and staff management methods.

3.4.5. Plan for Scaling Up

A value chain facilitation approach looks at scaling up in a different way. It refers to greater depth and breadth of behaviors that are critical to achieving sustainable competitiveness.

3.4.3. Program Design Process

Value chain program design should address systemic constraints to sustaining competitiveness. Underlying systemic constraints are incentives that limit the quality and types of inter-firm relationships, reduce the value placed on innovation and learning, and maintain inequitable benefit distributions.

3.4.4. Leverage Points

Leverage is the process of targeting an intervention at points in a system that can generate broad change throughout the value chain.

3.4.6. Leverage Through Lead Firms

Lead firms can be an easy option for gaining leverage in a value chain. Lead firms can be sellers of inputs or buyers of value chain products and are targeted because of their potential to shift the norms of behavior in an industry.

3.4.10. Understanding Knowledge Flows

There is often an underlying assumption that the main constraint facing microenterprises and smallholder farmers is a knowledge gap. Taking a value chain systems perspective requires asking additional questions.

1.4.5. Monitoring and Evaluation - Overview

What is Monitoring and Evaluation? Monitoring and evaluation (M&E)—one of the five phases of the project cycle—consists of two basic components: performance monitoring and evaluation (see table below). Monitoring and evaluation serve distinct purposes.

3.5.1. Impact Assessment

Impact assessment is an evaluation whose purpose is to attribute outcomes and impacts to project operations.

3.5.5. Performance Indicator Reference Sheet

Once the performance monitoring system has been finalized, the details should be captured in a series of Performance Indicator Reference Sheets (PIRS). The PIRS is a summary resource that describes how the performance monitoring system is operationalized. A PIRS is completed for each indicator collected in the performance monitoring system. The following table presents a sample PIRS. This is only one example of what a PIRS might look like. The precise form and content of the PIRS is left up to the project.

2.8.7. Acquisition of Production Capability

Lead firms can be very demanding about reducing costs, raising quality and increasing on-time performance. Yet, along with high standards, lead firms can also provide knowledge and support. MSEs learn by observing what their buyers are doing or in other cases, the lead firm will transmit best practices through embedded services or provide hands-on advice on how to improve production processes and producers’ skills.

2.6.5. Power

Power is the ability of a firm or organization to exert influence and control over other firms in the chain. Power can come from any part of the value chain structure, in many different forms. Within the chain, power comes from firms and the workers within the firms. Outside the chain, power comes from institutions created by the enabling environment and consumers. Those in possession of industry power actively shape the distribution of profits and risk through their activities.

2.7.1. Importance of Vertical and Horizontal Linkages to Foster Win-Win Relationships

Vertical Linkages to Foster Win-win Relationships Effective vertical linkages between firms at different levels of the value chain play a key role in supporting the upgrading capacity of the chain. For example, firms in global value chains for fresh fruits and vegetables must be able to respond quickly to changing food safety and quality standards.

2.7.3. Types of Relationships

Introduction From the viewpoint of a project implementer, inter-firm relationships may be effective or ineffective in facilitating inclusive industry competitiveness (i.e., competitiveness that enhances MSE benefits). Firms themselves may view their relationships with others in the value chain as being either supportive of their business goals or adversarial to them. Inter-firm relationships can also be placed on a spectrum from socially-based relationships to strictly commercial relationships.

2.7.5. Buying Down Risk to Develop Win-Win Relationships

The starting point for establishing any commercial relationship is the transaction. In weak and highly confused markets the perceived risks associated with initial transactions—where trust is established—can be prohibitive. As a result, a project can use its subsidy to reduce the risks leading into a transaction, especially for new clients or for firms entering new markets where risks are perceived as too high to warrant investment.