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.