Influence Of Organizational Innovation On The Growth Of Farmer’s Income In Ecuador

Ecuador is abundant in natural resources and there within lies not just fertile farmland but also the potential for strong agricultural production. Agriculture is a common economic activity in Ecuador. The country has quite a few national-branded agricultural products ranging from bananas to cocoa but due to the lack of farm organizations and impeded market-oriented channels, the sector remains competitively weak. Finding the right approach to realize agricultural sustainability and strong development as well as elevating the strategic position of agriculture in the entire country have become significant social and economic issues that need to be urgently focused on.With local and foreign research as a basis and using organizational behavior, farm economy, industrial economy, sustainable development and other related theories as guides, this paper systematically analyses Ecuador’s socio-economic development, especially agricultural development seen in the last12years and existing significant problems, thereupon case studies of successful organizational innovation in developed and developing countries are used to aid in the joint conduction of normative analysis and empirical research to investigate the effects of organizational innovation on agricultural production, farmers’ income and the wider society.To guide the theory generation this analysis is also supported by a statistical and comparative analysis of the production efficiency of three different crops--Yellow corn (Zea mayz L), Potato(Solanum tuberosum) and Lemon grass(Cymbopogon Citratus), which represent the three natural regions of Ecuador (Coast, Sierra and Amazon respectively)----produced under three types of organizational structures:sole proprietorships, two-member partnerships, and partnerships with3members.Ultimately, specific suggestions will be offered on how to strengthen organizational innovation and increase Ecuadorian farmers’income.Conclusion of thesis research::(1)Due to the fact that the majority of farmers operate under the sole proprietorship model, which is compounded by cultural hindrances and lack of government support, Ecuadorian agriculture has been unable to occupy an important position/fulfil its great potential in the local economy.(2)The innovative organizational system--"consortium"—is the direction that should be taken to improve Ecuador’s agricultural operation and management.(3)Farmers involved in co-operative production can increase agricultural production and hence see their own income increase.(4) The government should, through financial subsidies, legislation, supporting enterprises, resource integration, education improvement and other aspects, support the establishment of a new kind of agricultural organizational system that is conducive for reform in Ecuadorian agriculture. This will ultimately increase the entire country’s level of agricultural industrialization, the degree of agricultural organization and the level of farmers’income.