An Analysis of the Effect of Institutional Arrangement on Cashew Nut Farming Business Sustainability in Tanzania: The Mediation Role of Market Stakeholders’ Action.

Felex, Vicent M. (2023) An Analysis of the Effect of Institutional Arrangement on Cashew Nut Farming Business Sustainability in Tanzania: The Mediation Role of Market Stakeholders’ Action. Doctoral thesis, The Open University of Tanzania.

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Abstract

Business sustainability has been a global problem experiencing a number of trials. In a bid to address it, the Government of Tanzania has established different institutions. However, the contribution of institutional arrangement to business sustainability is not yet documented. The objectives of this study were; to examine the effect of institutional legitimacy, isomorphism, and logic together with market stakeholders‘ actions on business sustainability in Tanzania. The mediating effect of market stakeholders‘ actions was also examined. The study was explanatory and involved data from 430 cashew nut farmers from Mtwara, Lindi, Ruvuma, Coast, and Tanga region selected using simple random sampling. Descriptive and inferential analysis followed by exploratory and confirmatory factor analysis performed. Assumptions of structural equation modeling were tested whereby a significant relationship was reported if p<.05. SPSS version 25 and IBM SPSS Amos version 23 were applied. Results revealed that: - legitimacy, isomorphism, logic together with market stakeholder‘s action had a positive and significant direct effect on business sustainability at p < .001. Market stakeholder‘s actions mediated the relationship between legitimacy, isomorphism, and logic on business sustainability. Therefore, it is recommended that: - institutions should enhance their legitimacy to all business players to stay sustainable. Applied isomorphic pressure must cut across both direct and indirect business players for continuity, and institutional logic which takes into account only direct business players can be more useful. Keywords: Business Sustainability, Institutional Arrangement, Legitimacy, Isomorphism.

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