Agrotourism and Value-Added Products: A Business Model Innovation for Farm Retailing

Abstract

This research paper investigates the structural transformation of traditional farm retailing through the strategic integration of agrotourism and value-added agricultural products. Grounded in the Experience Economy paradigm, Service-Dominant (S-D) Logic, and the Resource-Based View (RBV) of the firm, the study addresses a critical research gap concerning the lack of integrated, scalable business model innovations explicitly designed for small-to-medium enterprise (SME) agripreneurs. Utilizing a rigorous TOWS Matrix analysis and Management by Objectives (MBO) framework, the methodology systematically maps the economic synergies between secondary food processing, tertiary experiential services, and Short Food Supply Chains (SFSCs). The empirical discussion focuses on resource-constrained, semi-arid environments—specifically the Thar Desert in Rajasthan, India—demonstrating how the strategic monetization of endemic, climate-resilient crops (e.g., Ker Sangri) through heritage tourism maximizes revenue per drop of water and fosters profound agripreneurial resilience. Key findings indicate that experiential value co-creation directly justifies premium retail pricing, insulates farms from global commodity market volatility, and successfully operationalizes the Triple Bottom Line. The paper concludes with actionable policy implications, emphasizing the necessity of digital integration, targeted legislative support (such as land-conversion waivers and tax reimbursements), and the establishment of robust capacity-building resource centers to secure sustainable rural economic revitalization.