Determinants of farmers’ intentions to seek Agricultural Value Chain Financing in Tanzania

Figures & data

Figure 1. Displays the connections between hypothesised variables in our current study.

Table 1. Demographic profile of respondents.

Demographics	Frequency (N = 184)	Percent (%)
Gender
Male	128	69.6
Female	56	30.4
Age
18–25 years	48	26.1
26–35 years	64	34.8
36–45 years	48	26.1
46 years and above	24	13.0
Marital status
Single	56	30.4
Married	128	69.6
Academic qualification
Primary Education	88	47.8
Secondary Education	48	26.1
Certificate /Diploma	32	17.4
Informal Education	16	8.7
Agricultural experience (sunflower farming)
Less than 10 years	104	56.5
10 to 20 years	64	34.8
21 to 30 years	16	8.7
Annual income from sunflower farming
Below TZS: 10 million	120	65.2
Between TZS: 10 million and TZS: 20 million	53	28.8
Between TZS: 21 million and TZS: 30 million	11	6.0
Farm size
Below 10 hectares	90	48.9
Between 10 and 20 hectares	54	29.3
Between 21 and 30 hectares	18	9.8
More than 30 hectares	22	12.0

Source: SPSS Output.

Table 2. Descriptive analysis for independent and dependent variables.

Codes	Statements	Mean	Std. Deviation
Perceived Benefit of AVCF (PB)
PB1	My family income will rise, if I take AVCF	4.39	1.25
PB2	Wellbeing of my family will advance, if I take AVCF	4.26	1.33
PB3	Suppliers of AVCF are helping the farmers by providing work for them	4.48	1.02
PB4	I think AVCF can aid me to enlarge my farm output	4.35	1.24
PB5	I think AVCF can assist me to increase the possible market	4.39	1.25
PB6	I can improve my living standard through AVCF	4.22	1.42
PB7	I can advance my farming by using AVCF	4.43	1.25
PB8	I think AVCF has a positive influence on my farming revenue and market	4.26	1.33
Overall Mean for PB		4.35
Perceived Risk of AVCF (PR)
PR1	If I fail to pay back the AVC finances, my farming will be negatively disturbed	4.48	1.14
PR2	If I fail to reimburse the AVC finances timely, I will fill embarrassment and shame	4.35	1.24
PR3	If others recognise my AVCF request, they will consider I am poor	3.91	1.67
PR4	If I fail to refund the AVCF accordingly, I and my family associates will be constantly bothered by the AVCF dealers	4.17	1.41
PR5	If I fail to refund the AVCF timely, I will be required sell my household properties to reimburse the money	4.13	1.40
PR6	Need for collaterals affects my AVCF requirements	4.00	1.54
PR7	There is much documentation needed prior to attaining AVCF	3.91	1.56
PR8	Organizations providing AVCF commonly take a long time to commend the AVCF fund	4.35	1.34
Overall Mean for PR		4.16
Subjective norms (SN)
SN1	Attaining AVCF would excite my family associates	3.00	1.72
SN2	My close friends commends my involvement in AVCF	3.22	1.75
SN3	My close friends inspire me to attain AVCF	3.26	1.78
SN4	Attaining AVCF would astonish my close friends	3.30	1.74
Overall Mean for SN		3.20
Perceived Behavioural Control (PBC)
PBC1	I have the capability to get AVCF	2.92	1.73
PBC2	It would be very easy for me to find AVCF in the subsequent year	3.05	1.69
PBC3	I have the capacity to refund my AVCF	2.96	1.77
PBC4	It would be easy for me to pay off my AVCF	2.88	1.76
Overall Mean for PBC		2.95
Knowledge of AVCF (KND)
KND1	I have the information of places that offer AVCF to farmers	3.61	1.77
KND2	I am aware of the preconditions needed to acquire AVCF	3.40	1.87
KND3	I know the terms and conditions of the AVCF needed by farmers	3.27	1.81
KND4	I have the awareness of how to deal with my AVCF	3.03	1.87
KND5	The AVCF interests are too costly to farmers	3.16	1.90
KND6	I must incur service fee to request for AVCF	3.24	1.82
KND7	I need to have considerable time to acquire AVCF	3.07	1.69
KND8	I know the concept of AVCF	3.45	1.68
KND9	I recognize places in which AVCF are issued	3.49	1.65
KND10	I understand application procedures for AVCF	3.20	1.72
Overall Mean for KND		3.29
Intentions to AVCF (INT)
INT1	I anticipate to acquire AVCF in the upcoming year	3.36	1.70
INT2	I would recommend relatives, friends and others to seek for AVCF	3.18	1.80
INT3	I would like to finance my farming activities through AVCF	3.48	1.77
INT4	I will make an effort to obtain AVCF in the future.	3.18	1.79
INT5	I have intention to apply for AVCF loan within the next 12 months	3.57	1.67
INT6	I work hard towards becoming an AVCF role model	4.14	1.40
INT7	I have the need to expand my requests for AVCF	3.67	1.71
INT8	I am enthusiastic when using AVCF	3.93	1.66
Overall Mean for INT		3.57
Social Enterprise Embeddedness (SEE)
SEE1	I think there is a more level of commitment and everyday communication among farmers and social enterprises	4.15	1.28
SEE2	I know there is a much level of common trust amid social enterprises and farmers	4.20	1.29
SEE3	I contemplate that farmers can get farming skills and market-required issues from social enterprises	4.24	1.30
SEE4	I consider that social enterprises can assist farmers to acquire AVCF	4.15	1.28
Overall Mean for SEE		4.18
Summary of overall mean and interpretations
S/No.	Variables	Mean	Interpretations
1	PB	4.35	High
2	PR	4.16	High
3	SN	3.20	Moderate
4	PBC	2.95	Moderate
5	KND	3.29	Moderate
6	INT	3.57	Moderate
7	SEE	4.18	High

Source: SPSS Output.

Table 3. Construct reliability and validity.

Variables	Cronbach’s Alpha	rho_A	Composite Reliability	Average Variance Extracted (AVE)
INT	0.91	0.93	0.93	0.70
KND	0.92	0.95	0.94	0.72
PB	0.96	0.99	0.97	0.79
PBC	0.90	1.51	0.92	0.79
PR	0.73	0.73	0.88	0.79
SEE	0.99	1.01	0.99	0.97
SN	0.90	0.95	0.93	0.77

Source: SMARTPLS3 Output.

Table 4. Discriminant validity: Fornell-Larcker Criterion.

Variables	INT	KND	PB	PBC	PR	SEE	SN
INT	0.838
KND	0.578	0.850
PB	0.478	0.442	0.887
PBC	0.284	0.307	0.137	0.887
PR	−0.202	−0.143	0.251	0.092	0.886
SEE	0.349	0.556	0.109	0.088	−0.152	0.984
SN	0.086	0.013	0.111	0.570	0.119	0.164	0.876

Source: SMARTPLS3 Output.

Table 5. Heterotrait-Monotrait Ratio (HTMT).

	INT	KND	PB	PBC	PR	SEE	SN
INT
KND	0.576
PB	0.482	0.468
PBC	0.244	0.386	0.177
PR	0.250	0.202	0.353	0.251
SEE	0.363	0.574	0.197	0.164	0.183
SN	0.156	0.103	0.141	0.763	0.177	0.161

Source: SMARTPLS3 Output.

Table 6. Collinearity Statistics (VIF)-Outer VIF values.

Variables	VIF
Farmers’ intentions to seek AVCF (INT)
INT1	2.05
INT2	3.81
INT3	3.43
INT4	0.99
INT5	3.32
INT6	2.10
Knowledge (KND)
KND1	2.42
KND2	2.62
KND3	2.10
KND4	2.47
KND5	1.74
KND6	2.72
Perceived Benefits (PB)
PB1	0.91
PB2	1.60
PB3	2.04
PB4	2.82
PB5	2.09
PB6	3.68
PB7	0.54
PB8	3.22
Perceived Behavioral Control (PBC)
PBC1	1.87
PBC2	2.13
PBC3	1.30
Perceived Risk (PR)
PR5	1.48
PR6	1.48
Social Enterprise Embeddedness (SEE)
SEE1	0.19
SEE2	3.24
SEE3	3.10
SEE4	0.35
Subjective Norms (SN)
SN1	2.49
SN2	2.37
SN3	2.23
SN4	2.23

Source: SMARTPLS3 Output.

Table 7. Construct Crossvalidated (Total).

Variables	Redundancy
	SSO	SSE	Q² (=1-SSE/SSO)
INT	1104.000	742.157	0.328
KND	1104.000	1104.000
PB	1472.000	1472.000
PBC	552.000	552.000
PR	368.000	368.000
SEE	736.000	736.000
SN	736.000	736.000
Variables	Communality
	SSO	SSE	Q² (=1-SSE/SSO)
INT	1104.000	457.637	0.585
KND	1104.000	426.169	0.614
PB	1472.000	405.069	0.725
PBC	552.000	258.480	0.532
PR	368.000	248.602	0.324
SEE	736.000	62.145	0.916
SN	736.000	286.775	0.610

Source: SMARTPLS3 Output.

Table 8. Hypotheses Testing.

Hypotheses	Relationships	Path Coefficients	T Statistics	P Values	f^2	Status
H1	PB → INT	0.414	7.757	0.000	0.215	Accepted
H2	PR → INT	−0.266	4.399	0.000	0.113	Accepted
H3	SN → INT	−0.079	0.528	0.598	0.007	Rejected
H4	KND → INT	0.213	2.059	0.040	0.034	Accepted
H5	PBC → INT	0.219	1.736	0.083	0.048	Rejected
H6	SEE → INT	0.138	2.160	0.031	0.021	Accepted
R^2=0.479

Source: SMARTPLS3 Output.

Figure 2. Structural Model.

Source: SMARTPLS3 Output.

Figure 3. Importance performance map.

Source: SMARTPLS3 Output.

Table 9. Importance-performance matrix for INT.

Variables	Importance (Total Effects)	Performances (Index values)	Overall Score (Performance/Importance)	Rankings
KND	0.195	57.513	294.938	3
PB	0.534	84.029	157.358	1
PBC	0.2	48.89	244.450	4
PR	0.294	76.686	260.837	5
SEE	0.157	79.616	507.108	2
SN	0.072	55.898	776.361	6

Source: SMARTPLS3 Output.

Data availability statement

Data will be made available upon reasonable request from the authors.