Governance and Leadership Practices in Farmers Producer Organizations: Implications for Organizational Effectiveness

Abstract

Purpose: The study aims to explore how governance and leadership practices influence the effectiveness and sustainability of Farmers Producer Organizations (FPOs) in India. It seeks to understand the nature of governance structures, leadership dynamics, and the mechanisms that contribute to, or constrain, the performance of FPOs in promoting smallholder empowerment, market access, and collective growth. Methodology: The paper employs a systematic literature review approach. The literature were analysed to identify common patterns, governance models, leadership practices, and key challenges faced by FPOs. Findings: The review reveals that FPOs in India operate under diverse legal and institutional structures, primarily as producer companies and cooperative societies. While these models have expanded rapidly, governance issues, such as weak board functioning, inadequate financial transparency, and limited managerial expertise, remain widespread. Effective leadership is found to depend on technical competence, business acumen, inclusiveness, and sustained mentorship. Furthermore, professionally managed FPOs with participatory governance demonstrate higher levels of financial stability, market engagement, and member satisfaction. Implications: The findings underscore the need for policymakers, financial institutions, and support agencies to prioritize governance reforms and leadership capacity-building as central pillars of FPO promotion strategies. Strengthening board governance, enhancing transparency, and fostering hybrid leadership models can significantly improve FPO sustainability and competitiveness. The study also highlights the importance of long-term institutional handholding and the professionalization of management to ensure organizational resilience. Originality: This paper contributes to the existing body of knowledge by integrating governance and leadership dimensions into a unified analytical framework for assessing FPO performance. Unlike earlier studies that focus mainly on financial or market aspects, this review emphasizes the qualitative drivers of organizational effectiveness, governance culture, leadership development, and institutional legitimacy, thereby offering novel insights for both researchers and practitioners seeking to strengthen collective farmer enterprises in developing economies.