Impact of agribusiness value chain components on agribusiness performance and livelihood outcomes: An integrated analysis using porter's value chain and the sustainable livelihoods framework

This research examines the influence of agricultural value chain elements on agribusiness performance and livelihood outcomes in Somalia, including Porter’s Value Chain Analysis and the Sustainable Livelihoods Framework (SLF). It analyzes the impact of fundamental value chain components input supply, production, processing, and marketing on agribusiness performance and, subsequently, on livelihood outcomes such as income, food security, employment, and resilience. A quantitative methodology was employed, utilizing data collected from 400 agribusiness actors within Somalia's agricultural sector. Structural Equation Modeling (SEM) using SmartPLS was applied to explore the interrelationships among variables. The findings indicate that most value chain elements exert a significant positive influence on agribusiness performance; however, input supply was identified as a constraining factor due to inefficiencies. Agribusiness performance acts as a mediator linking value chain components to improved livelihood outcomes. The study provides actionable policy recommendations for vulnerable agricultural economies, emphasizing the need for improved infrastructure, better control of agricultural inputs and services, and conflict-sensitive strategies. This research presents an empirically validated model connecting value chain enhancement to sustainable livelihood improvements, offering valuable insights for policymakers, development partners, and practitioners aiming to strengthen agribusiness competitiveness and resilience in post-conflict and vulnerable rural areas.