This study analyzes the influence of entrepreneurship on the resource-based performance of rural farmers and traders in dynamic agribusiness situations.
The study proposes a new conceptual framework grounded in resource orchestration, entrepreneurial orientation (EO) and contingency theory. To test this framework, multi-tier data obtained from 708 farmers and 639 fruit and vegetable traders in Zambia were analyzed using structural equation models comprising mediation–moderation analyses.
Results show that financial, physical and social resources positively influence the EO of both farmers and traders, which, in turn, mediates the effects these resources have on their respective business performance. The moderation analyses reveal that these effects strengthen and weaken depending on dominant business contingencies, indicating an entrepreneurial mismatch across multiple tiers of the agricultural value chain. Specifically, while farmers’ entrepreneurial success (i.e. EO–performance link) is moderated by power asymmetry, competition and tighter supplier–buyer relations, traders’ entrepreneurial capability (i.e. resource–EO link) is moderated by organization trust, competition and tighter supplier–buyer relations.
The study’s originality lies in its proposed conceptual framework and its novel multi-tier empirical insights into how small-scale farmers and traders orchestrate their resources to develop entrepreneurial capability, which they, in turn, use to maximize business performance amidst ambiguous business conditions. Furthermore, this study raises and discusses several theoretical, practical and policy implications, thereby offering valuable contributions to both academic understanding and real-world applications. By examining how EO develops and is leveraged within the small-scale agribusiness sector of a developing country, the research bridges the gap between theory and practice in the context of rural entrepreneurship.
