Determinants of farmers’ organizational structural choices in Uganda

Nangobi Racheal (), Mshenga Patience Mlongo () and Mugonola Basil ()
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Nangobi Racheal: Gulu University
Mshenga Patience Mlongo: Egerton University
Mugonola Basil: Gulu University

SN Business & Economics, 2023, vol. 3, issue 8, 1-22

Abstract: Abstract Although appropriately structured farmer organizations effectively and efficiently improve smallholder farmers’ livelihoods, many farmer organizations in Uganda suffer structural challenges that affect their performance. Structures used by farmer organizations in Uganda and factors that influence them are scarcely researched up-to-date. Available structural studies researched the influence of structures on organizational effectiveness and performance. This study determined: organizational structures used by farmer organizations in Uganda, differences in characteristics of farmer organizations across the structures and factors that influence such structures. This study contributes to the understanding of the organizational structures used by farmer organizations, differences in characteristics of farmer organizations across the structures and factors that influence the structures in Uganda. A skewed logit regression analyzed cross-sectional survey data from 272 farmer organizations in central and northern Uganda. Results revealed that 99% of the organizations used a one-hierarchical structure. Additionally, organizations that used a one-hierarchical structure were dominated by: younger members (18 years), passionate leaders and smaller farm size owners (0.36 acres). Further, revenue sources, total costs, customer relationship strategies, proportion of male members, farmer organizations formed by external agencies and using both democratic and autocratic leadership styles influenced a one-hierarchical structure. Total revenue, number of business activities, geographical coverage, leader’s expertise and age of members influenced a two-hierarchical structure. A one-hierarchical structure sufficiently supports farmer organizations. Farmer organizations should balance the proportion of males to females and younger to older, for competitiveness. Government and development partners should intensify leadership, gender equality and financial management trainings offered to farmer organizations.

Keywords: Farmer organization; Organizational structure; Hierarchical levels; Skewed logit regression (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s43546-023-00541-1

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