I share because I care! Smallholder farmers’ perceptions of the usefulness of word of mouth for their market participation decisions

Ismail Juma Ismail, David Amani, Ismail Abdi Changalima and Isaac Kazungu

IIM Ranchi Journal of Management Studies, 2023, vol. 3, issue 1, 39-53

Abstract: Purpose - The approach to integrate concepts from different disciplines so as to solve the problems facing smallholder farmers has gained momentum in recent years. However, very little is known about how word-of-mouth (WOM) dimensions can be used in agricultural marketing to explain market participation among smallholder farmers. Therefore, this study investigates the perceived usefulness of WOM in explaining smallholder farmers’ market participation. Design/methodology/approach - The cross-sectional design was carried out to survey a sample of 467 smallholder farmers. This study used partial least squares structural equation modelling (PLS-SEM) in SmartPLS 4 to test hypotheses. Findings - The results revealed that WOM dimensions such as expertise differential, strong tie and trustworthiness among smallholder farmers significantly influence the WOM message delivery. Likewise, the findings suggest that WOM message delivery significantly influences market participation among smallholder farmers. Finally, it was revealed that WOM message delivery significantly mediates the relationship between WOM dimensions and market participation. Practical implications - This study provides useful insights to smallholder farmers on how to use WOM dimensions to enhance more market participation in formal markets, especially through proper WOM message delivery. Originality/value - The current study solves the problem of information asymmetry among smallholder farmers through WOM. It is perhaps the first study to establish the link between WOM dimensions and market participation among smallholder farmers in the context of developing countries.

Keywords: WOM dimensions; Expertise differential; Strong tie; Trustworthiness; WOM (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:irjmsp:irjms-11-2022-0104

DOI: 10.1108/IRJMS-11-2022-0104

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IIM Ranchi Journal of Management Studies is currently edited by Prof (Dr) Deepak Kumar Srivastava

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