Understanding Determinants of Managerial Competencies of FPO (Farmer Producer Organization) Leadership for Driving Sustainable Growth: A Strategic Framework and Policy Implications

The study aims to determine the key variables influencing the competencies of managerial teams of farmer producer organizations (FPOs) that impact their performance and progress towards attaining sustainable growth in the state of Andhra Pradesh. Primary data was collected from a random sample of 15 FPOs involving 94 managerial team members and secondary data from FPO financial statements spanning over 2019–2022. Statistical techniques, namely index scores, ANOVA, ordinal logit and financial ratios, are used for empirical analysis. Higher formal education, exposure to previous business activities and digital media and experience in leadership roles in community-based organizations (CBOs) are identified as key competency determinants of FPO managerial teams. FPOs are categorized into supported existence, stagnant, self-sustained and sustained growth based on their financial performance. Sustained growth FPOs comparatively demonstrated better performance over their counterparts, attributed to higher competency determinants that enabled them to adopt a holistic value chain approach. Thus, findings indicated a positive relation between competencies and performance. In the light of findings, a strategic four I (4I) model and sustained growth matrix are proposed to enhance business competencies for improved performance of FPOs to grow as potential social enterprises.