Smallholder farmers’ trust and commitment influence collective marketing outcomes for the rice producer organizations in mid-western Uganda

Pauline Birungi, Jacob G. Agea, Irene Bayiyana, Florence B. Kyazze, Lucy W. Mulugo, Sulaiman Ndaula

Abstract


The ability of a collective marketing arrangement to market smallholder produce comes from the unity and attributes of its members. This study determined the influence of trust and commitment of smallholder rice farmers on the collective marketing outcomes of collective marketing organizations of mid-western Uganda. A cross-section design, involving two surveys was used to obtain data from 361 smallholder rice farmers, who subscribed to farmer groups and associations that promoted collective bulking, storage and marketing of rice. The first survey captured farmers’ perceptions of trust (integrity, benevolence and propensity) and commitment (affective, continuance and normative) while the second estimated farmers’ participation in collective marketing and the intensity with which those who participated marketed their rice collectively. Using Double-Hurdle regression, this study showed the main drivers of participation in collective marketing to be integrity (β= 0.11; P<0.05) and benevolence (β= -0.13; P<0.05) in the domain of trust. Farmers who subscribed to farmer associations were also more likely to participate in collective marketing arrangements than counterparts subscribing to farmer groups (β= 0.64; P<0.001). Trust and commitment influenced the intensity of collective marketing. Particularly, farmers with higher integrity trust (β= 0.16; P<0.001) and propensity trust (β= 0.15; P<0.001), and affective commitment (β= 0.13; P<0.05) and continuance commitment (β= 0.12; P<0.05) collectively marketed more rice volumes. The revelation that members’ trust, commitment and being subscribed to farmer associations attract more participation and higher volumes of rice marketed collectively means that higher-level forms of organizations enhance trust and commitment towards collective marketing. Extension agents and policymakers should promote higher forms of farmer organizations that enhance the trust and commitment of members to their collective marketing arrangements. 

Keywords


Collective marketing intensity; Collective marketing participation; Commitment; Smallholder rice farmers; trust; Uganda

References


Abdullah, A. 2011. Evaluation of Allen and Meyer’s Organizational Commitment Scale: A Cross-Cultural Application in Pakistan. Journal of Education and Vocational Research, 1(3): 80-86.

Abebaw, D. and Haile, M. G. 2013. The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia. Food Policy, 38: 82–91.

Akite, I., Okello, D.M., Lamo J., Kasharu, A. and Mugonola, B. 2021. Determinants of non-technological upgrading strategies for rice market improvements in Uganda. Scientific African, 14: 1 – 12.

Alesina A. and La Ferrara E. 2002. Who trusts others? Journal of Public Economics, 85: 207-234.

Alibu, S., Otim, M.H., Okello, S.E.A., Lamo, J., Ekobu, M. and Asea, G. 2016. Farmer’s Knowledge and Perceptions on Rice Insect Pests and Their Management in Uganda. Agriculture, 6(3): 38.

Allen, N. J. and Meyer, J. P. 1990. The Measurement and Antecedents of Affective, Continuance and Normative Commitment to the Organization. Journal of Occupational Psychology, 63:1-18.

Barham, J. and Chitemi, C. 2009. Collective action initiatives to improve marketing performance: Lessons from farmer groups in Tanzania.Food Policy, 34: 53–59.

Basheka, B.C. 2009. Quality Assurance Systems and Outcomes-Based Education at Uganda Management Institute: A project Management Approach. Research dissertation for the award of Masters’ Degree in Management Studies. Kampala: UMI

Bua, B. and Ojirot, M. 2014. Assessing the Importance of Rice as Food and Income Security Crop in Puti-puti Sub-county, Pallisa District, Uganda. American Journal of Experimental Agriculture. 4(5): 532-540.

Caceres, R. C. and Paparoidamis, N. G. 2007. Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. European Journal of Marketing, 41: 836-867.

Chyung, S. Y., Roberts, K., Swanson, I. and Hankinson, A. 2017. Evidence-Based Survey Design: The Use of a Midpoint on the Likert Scale. International Society for Performance Improvement, 56(10): 15-23.

Claro, D. P., Hagelaar, G. and Omta, O. 2003. The determinants of relational governance and performance: How to manage business relationships? Industrial Marketing Management, 32(8): 703-716.

Colquitt, J. A., Scott, B. A. and LePine, J. A. 2007. Trust,

Trustworthiness, and Trust Propensity: A Meta-Analytic Test of Their Unique Relationships with Risk Taking and Job Performance. Journal of Applied Psychology,92(4): 909–927.

Cragg, J. G. 1971. Some statistical models for limited dependent variable with application to the demand for durable goods. Econometrica, 39: 829-844.

Ekepu, D., Tirivanhu, P. and Nampala, P. 2017. Assessing farmer involvement in collective action for enhancing the sorghum value chain in soroti, Uganda. South African Journal of Agricultural Extension, 45(1): 118-130.

Farndale, E., Hope-Hailey, V. and Kelliher, C. 2011. High commitment performance management: the roles of justice and trust. Personnel Review, 40(1): 5-23.

Fehr, E. and Gachter, S. 2000. ‘Fairness and retaliation: The economics of reciprocity. Journal of Economic Perspectives, 14: 159–181.

Fischer, E. and Qaim, M. 2012. Linking smallholders to markets: determinants and impacts of farmer collective action in Kenya. World Development, 40(6): 1255-1268.

Fischer, E. and Qaim, M. 2014. Smallholder Farmers and Collective Action: What Determines the Intensity of Participation? Journal of Agricultural Economics, 65(3): 683–702.

Gabre-Madhin E. 2001. Market Institutions, Transaction Costs and Social Capital in the Ethiopian Grain Market. IFPRI Research Report 124, International Food Policy Research Institute, Washington D.C.

Gerber, A. 1998. Estimating the effect of campaign spending on senate election outcomes using instrumental variables. American Political Science Review, 92: 401-411.

Geyskens, I., Steenkamp, J. and Kumar, N. 1998. Generalizations about trust in marketing channel relationships using meta-analysis. International Journal of Research in Marketing, 15(3): 223-248.

Ghosh, A. and Fedorowicz, J. 2008. The role of trust in supply chain governance. Business Process Management Journal, 14(4): 453-470.

Government of Uganda (GoU). 2009. Uganda National Rice Development Strategy, 2nd draft. Kampala Uganda.

Heckman, J.J. 1979. Sample selection bias as a specification error. Econometrica, 47, 153-161.

Hellin, J., Lundy, M. and Meijer, M. 2009. Farmer organization, collective action and market access in Meso-America. Food Policy, 34: 16-22.

Hong, S., Seongsoo Hwang, S., Lamo, J., Nampamya, D., and Park, T. 2021. The Current Status of Opportunities for Rice Cultivation in Uganda. Journal of Korean Society of International Agriculture, 33(1): 67–74.

Hongmei L. and Mingxian, L. 2011. Collective Water Management and Technical Efficiency in Rice Production: Evidence from China. The Journal of Developing Areas, 44(2).

Huang L.J. and DesimoneJ. A. 2020. Insufficient effort responding as a potential confound between survey measures and objective tests, Journal of Business and Psychology, 36: 807-828.

Iverson, A. 2003. Literature review: Attribution and aid evaluation in international development. IDRC, Ottawa, Canada

Jagwe, J.N., Machethe, C.L. and Ouma, E. 2010. Transaction costs and smallholder farmers’ participation in banana markets in the Great Lakes Region of Burundi, Rwanda and the Democratic Republic of Congo. African Journal of Agriculture and Resource Economics, 6(1): 302-317.

Joseph, L., Wolfson, D. B., Berger, R. Du, Journal, S., Statistical, R., Series, S., Berger, R. D. U. 2015. Sample size calculations for binomial proportions via highest posterior density intervals have been proposed recently as a special, 44(2): 143–154.

Kijima, Y. and Sserunkuuma, D. 2013. The adoption of NERICA rice varieties at the initial stage of the diffusion process in Uganda. African Journal of Agricultural & Resource Economics, 4(1):45–56.

Kilelu, C. W., Klerkx L., and Leeuwis, C. 2017. Supporting Smallholder Commercialisation by Enhancing Integrated Coordination in Agrifood Value Chains: Experiences with Dairy Hubs in Kenya. Experimental Agriculture. 53(2): 269–287.

Kwapong, N. A., Lubega, P. and Illukor, J. 2013. Why a few Agricultural Cooperatives survived the crisis in Uganda while others collapsed. International Journal of Arts and Commerce, 2(6):53-64

Kwon, I. W. G. and Suh, T. 2005. Trust, commitment and relationships in supply chain management: A path analysis. Supply Chain Management: An International Journal, 10(1): 26-33.

MAAIF. 2016. Agriculture Sector Strategic Plan 2015/16-2019/ 20.

MAFAP and FAO. 2013. Rice in Uganda: Supporting producers but penalizing consumers. MAFAP policy brief.

Mango, N., Makate, C., Lundy, M., Sizina, S., Nyikahadzoi, K. and Fatumbi, A. O. 2017. Collective market participation for improved income among smallholder farming households: a case of balaka innovation platform in Malawi. African Crop Science Journal, 25: 97 - 108

Markelova, H., Meinzen-Dick, R., Hellin, J., Dohrn, S. 2009. Collective action for smallholder market access. Food Policy, 34: 1-7.

Masakure, O. and Henson, S. 2005. Why do small-scale producers choose to produce under contract? Lessons from nontraditional vegetable exports from Zimbabwe. World Development, 33: 1,721–1,733.

Mayer, R.C., Davis, J.H. and Schoorman, F.D. 1995. An integrative model of organizational trust. Academy of Management Review, 20: 709-734.

Meyer, J. P., Stanley, D. J., Herscovitch, L. and Topolnytsky, L. 2002. Affective, continuance and normative commitment to the organization: A meta-analysis of antecedents, correlates and consequences. Journal of Vocational Behavior, 61: 20-52.

Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). 2012. Uganda National Rice Development Strategy, 2008-2018. Entebbe, Uganda

Molm, L.D., Collett, J.L. and Schaefer, D.R. 2007. Building solidarity through generalized exchange: a theory of reciprocity. American Journal of Sociology, 113 (1): 205-242.

Morgan, R. M. and Hunt, S. D. 1994. The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3): 20-38.

Morgan, R. M., and Hunt, S. D. 1994. The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58(3): 20–38.

Mowday, R. T., Porter, L. W. and Steers, R. M. 1982. Employee-organization linkages: The psychology of commitment, absenteeism and turnover. New York Academic Press.

Mulugo, L. Kyazze, F. B., Kibwika, P., Omondi, B. A and Kikulwe, E. M. 2020. Seed Security Factors Driving Farmer Decisions on Uptake of Tissue Culture Banana Seed in Central Uganda. Sustainability, 10223.

Nangobi, R. and Mugonola, B. 2018. Determinants of collective marketing and marketable surplus for smallholder sorghum producers in Oyam district, Uganda. Journal of Development and Agricultural Economics, 10(7): 213-224.

Narrod, C., Roy, D., Okello, J., Avenda~no, B., Rich, K. and Thorat, A. 2009. Public-private partnerships and collective action in high-value fruit and vegetable supply chains. Food Policy, 34: 8–15.

National Planning Authority. 2018. Strengthening of Cooperatives for Social Economic Transformation in Uganda; Policy Paper for Presidential Economic Council (PEC), Kampala, Uganda.

Ndaula, S., Sseguya, H., and Matsiko, F. 2020. Social-Cognitive factors influencing household decisions to grow orange-fleshed sweet potato in Uganda. Journal of Agricultural Extension, 24 (01): 1–12.

Nimmy, A. G., Nimitha, A., and Manoj, E. 2021. Corporate social responsibility, organizational trust and commitment: a moderated mediation model. Personnel Review, 50(4): 1093-1111.

Noraazian and Khalip. 2016. A Three-Component conceptualization of organizational Commitment. International Journal of Academic Research in Business and Social Sciences, 6(12): 12-23.

Norman, G. 2010. Likert scales, levels of measurement and the “laws” of statistics. Advances in Health Sciences Education, 15(5): 625–632.

Nyikahadzoi, K., Siziba, S., Sagary, N., Njuki, J. and Adekunle, A. A. 2011. Promoting Effective Collective Marketing in the Context of Integrated Agricultural Research for Development in Sub-Saharan Africa. Journal of Agriculture and Environmental Studies, 2(1): 83-97.

Okelai, J. A., Vilard, A., Isoh, N., and Angundaru, G. 2020. Determinants of Collective Marketing Action and Profitability of Smallholder Farmers Enterprise in Uganda. International Journal of Science and Business Determinants, 4: 180-191.

Olson, M. 2009. The logic of collective action (Vol. 124). Harvard University Press.

Oonyu, J. 2011. Upland rice growing: A potential solution to declining crop yields and the degradation of the doho wetlands, butaleja district-uganda. African Journal of Agricultural Research, 6(12): 2774-2783.

Österberg, P. and Nilsson, J. 2009. Members' perceptions of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives. Agribusiness, 25(2): 181 - 197.

Ouma, E., Jagwe, J., Obare, G. A., and Abele, S. (2010). Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs. Agricultural Economics, 41(2): 111-122.

Palmatier, R. W., Dant, R. P., Grewal, D. and Evans, K. R. 2006. Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing, 70(4): 136-153.

Porter, L.W., Steers, R.M., Mowday, R.T. and Boulian, P. 1974. Organizational commitment, job satisfaction and turnover among psychiatric technicians. Journal of Applied Psychology, 59: 603609.

Poulton, C., Dorward, A., and Kydd, J., 2010. The future of small farms: New directions for Services, institutions, and intermediation. World Development, 38(10): 1413-1428.

Robinson, S.L. 1996. Trust and breach of the psychological contract. Administrative Science Quarterly, 41 (4): 574-599.

Sangthong, M. 2020. Effect of the Likert Point Scale and Sample Size on the Efficiency of Parametric and Nonparametric Tests. Thailand Statistician, 18(1): 55-64.

Saunders, M. N. K., Lewis, P. and Thornhill, A. 2003. Research Methods for Business Students. Harlow:Prentice Hall.

Shiferaw, B., Jon, H. and Geoffrey, M. 2011, ‘Improving market access and agricultural productivity growth in Africa: What role for producer organizations and collective action institutions?’ Food Security, 3: 475–489.

Shiimi, T., Taljaard, P. R., and Jordaan, H. 2012. Transaction costs and cattle farmers' choice of marketing channel in North-Central Namibia. Agrekon, 51(1): 42-58.

Ssajakambwe, F., Elepu, G., Walekhwa, P. N., and Mulebeke, R. 2019. Factors that influence participation in markets through collective action among smallholder maize farmers in Masindi district, Uganda. African Journal of Marketing Management, 11(5): 45-51.

Stockbridge, M., Dorward, A., and Kydd, J. 2003. Farmer organizations for market access: Learning from success.

Tadesse, Y., Conny J. M. Almekinders, Denis Griffin & Paul C. Struik. 2020. Collective Production and Marketing of Quality Potato Seed: Experiences from Two Cooperatives in Chencha, Ethiopia, Forum for Development Studies, 47:1, 139-156.

Tavakol, M. and Dennick, R. 2011. Making sense of Cronbach’s alpha. International Journal of Medical Education, 2:53-55.

Teddlie, C., and Yu, F. 2007. Mixed methods sampling: A typology with examples. Journal of Mixed Methods Research, 1: 77–100.

Uganda Bureau of Statistics (UBOS). 2016. The National Population and Housing Census 2014 – Main Report. Kampala.

Ülbeği, İ. D. and Yalçın, A. 2019. The validity and reliability of propensity to trust scale. OPUSUluslararasıToplumAraştırmalarıDergisi, 12(18): 850-866.

UNDP. 2016. Reengineering Cooperatives into Enablers of Agricultural Transformation in Uganda. Kampala: UNDP.

Zaefarian, G., Najafi-Tavani, Z., Henneberg, S. C. and Naudé, P. 2016. Do supplier perceptions of buyer fairness lead to supplier sales growth? Industrial Marketing Management, 53: 160-171


Full Text: PDF

DOI: 10.33687/ijae.012.001.4816

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Pauline Birungi, Jacob Godfrey Agea, Irene Bayiyana, Florence Birungi Kyazze, Lucy Were Mulugo, Sulaiman Ndaula

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.