Seeing through digitalization! The influence of entrepreneurial networks on market participation among smallholder farmers in Tanzania. The mediating role of digital technology

Abstract

Smallholder farmers have for a long time preferred to sell at the farm gate, where the prices have been very low compared to market places. This has been fueled by several challenges related to market participation. The purpose of this study is therefore aiming at developing an empirical understanding that uncovers whether digital technology can mediate the relationship between entrepreneurial networks and market participation. Entrepreneurship and digital technology are novel concepts in agriculture, especially for smallholder farmers. Therefore, this study presents new insights on how the challenges of market participation can be solved through entrepreneurial networks and digital technology. The study used validated items adopted from previous studies, from which the structured questionnaires were distributed to 298 smallholder farmers. In addition, structural equation modelling (SEM) was used to analyse relationships in which digital technology was found to be a mediator of the relationship between entrepreneurial networks and market participation among smallholder farmers. Further, the study suggests that smallholder farmers can overcome challenges and increase market participation if they change their attitudes through training conducted by rural extension officers and embrace digital technologies by designing new or joining existing entrepreneurial networks.

Keywords:

• entrepreneurial networks
• exchange networks
• communication networks
• social networks
• digital technology
• market participation

PUBLIC INTEREST STATEMENT

The inability of smallholder farmers to participate in markets has been one of the most significant challenges facing developing countries. Because of this, many rural households have poor living standards. Hence, there have been a number of different efforts put forth in order to raise the level of market participation. The purpose of this study is to make a contribution by putting an emphasis on the significance of entrepreneurial networks and digital technologies for enhancing market participation. This is due to the fact that smallholder farmers are characterized by inadequate resource endowments, inadequate technology bases, and a lack of sufficient skills and knowledge. So, being a part of networks can help them to have collective bargaining, which can make it more likely that they will adopt digital technologies and, as a result, give them more opportunities to participate in the market.

Disclosure statement

No potential conflict of interest was reported by the author.

Data availability statement

Data are available upon a reasonable request

Additional information

Funding

The author received no direct funding for this research.

Notes on contributors

Ismail J. Ismail

Ismail J. Ismail is a senior lecturer and a researcher at the department of business administration and management, University of Dodoma, Tanzania. His areas of research include marketing management and entrepreneurship, small and medium enterprise development, agribusiness development and strategic management. He can be reached at [email protected] or [email protected]