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Purpose

This research examines farmers’ cognitions to the policy and how such cognitions influence their intentions and behaviors of land transfer, with the implementation of the Three Rights Separation (TRS) policy.

Design/methodology/approach

Using data collected from the Beijing area, this research tests the relationship between farmers’ policy cognition and their intention/behavior through the mediation of their psychological constructs. Both Causal step test and Bootstrap test are adopted.

Findings

Farmers’ intention of land transfer is influenced by their cognition of the TRS policy. In this process, farmers’ psychological constructs play a mediating role between their policy cognition and their intentions of land transfer, thereby eventually influencing their behaviors. This research confirms that institutions are not exogenous and the policy is not wishful thinking from the government. Instead, any policies, even enacted by governmental authority, have to be internalized within target groups’ cognition to be implemented.

Originality/value

Land transfer deserves close attention since it is the direct aim of the TRS reform. In this regard, this paper, based on an institutional perspective, aims to extend our understanding on the incentives of land transfer. This research proposes a revised model of planned behavior and argues that farmers’ intention of land transfer is influenced by their cognition of the TRS policy. On one hand, this study is the first to examine farmers’ cognition formed through the implementation of the TRS policy. On the other hand, it reveals the path of how policy can finally influence farmers’ intentions and behaviors through shaping their cognitions and changing subjective perceptions, which enriches our understanding of the mechanism of how policy has a concrete impact on society.

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