The recent advances in digital technologies have not yet reached the smallholder farming communities. Prevailing business models support farmers to trade mainly at informal markets where farmers receive significantly low prices. Research claims that building trustworthy buyer-seller relationships can promote farmers’ participation in emerging markets that provide rich opportunities for farmers. Thus, we propose a mechanism to enhance trust between farmers and buyers, demonstrating the transition of a spot market to sophisticated markets when facilitated in a blockchain platform. We present how micro-level trust can be evolved into macro-level trust and thereon to social capital (digital identity), leading to novel business models. We validate how micro-level trust can be established with a selection of a permissioned blockchain platform, Hyperledger Fabric, with an implementation of a spot market. The proposed business model is applicable in other industries where the seller-buyer relationship is the focal point.
Kumarathunga, Malni and Ginige, Athula, "Business Model Transformation with Technology-Enabled Social Capital in Agriculture Domain" (2022). ACIS 2022 Proceedings. 93.