Development of Management Behaviour Index for Stakeholders in the Cotton Value Chain

Abstract

The cotton value chain comprises diverse stakeholders whose management behaviour influences the efficiency, sustainability and profitability of cotton production, processing and marketing. This study aimed to develop a Management Behaviour Index (MBI) for stakeholders in the cotton value chain and to assess key dimensions of managerial behaviour. The investigation was conducted in Adilabad district, Telangana, during 2021–2023. Indicators were identified through a review of the literature and expert consultation, with 27 indicators finalised using relevancy ratings obtained from 40 experts. The indicators were normalised and subjected to Principal Component Analysis with varimax rotation. Index validity was examined using content and construct validity measures, including a Kaiser-Meyer-Olkin value of 0.657 and Bartlett's Test of Sphericity. The assessment covered management dimensions related to collaborative planning and demand forecasting, negotiation between chain partners, competitor analysis, production planning and control, and purchase management. The findings indicated variation in management behaviour across the assessed dimensions. Stakeholders demonstrated relatively stronger operational behaviours related to production planning, resource use, invoicing and quality assurance, whereas collaborative problem-solving, systematic competitor intelligence, production scheduling and analysis of alternative purchasing sources showed comparatively weaker index values. The developed MBI provides a structured approach for identifying behavioural strengths and gaps among cotton value-chain stakeholders and may support appropriately targeted capacity-building, extension and management interventions.