Journal of Advances in Economics and Finance
JAEF
>
Volume 4, Number 3, August 2019
Industry Performance and Digital Disruption: Unleashing Possibilities for the African Farmer
DOI:
10.22606/jaef.2019.43002
Author(s)
Susanna E Botwood, Richard Chinomona, Krishna K Govender
Affiliation(s)
Da Vinci Institute of Technology Management, South Africa
Da Vinci Institute of Technology Management, South Africa
Da Vinci Institute of Technology Management, South Africa
Abstract
This study investigated digital maturity elements and possible disruptive technology
platforms to test whether these elements contain the “secret recipe” for African farmers to gain
access to markets and unleash their performance possibilities to alleviate poverty and increase the
African farmer’s income. To empirically test four research hypotheses, data was collected from a
sample of registered farmers and co-ops in databases from ProAgri, PanGlobal and TLU, and
analysed using SPSS and the Smart PLS statistical software. It became evident that the most
important antecedents of digital maturity in the industry are cultural aspects as well as the
technology capabilities and digital platform capabilities positively influenced digital organisational
performance. Managerial implications of the research findings are discussed, and limitations and
future research directions are indicated.
Keywords
Digitisation, digital disruption, African farmer, global markets, poverty alleviation,
developing countries, organisational performance.
References
- [1] Anthony, S.D., Johnson, M. & Sinfield, J.V. 2007. Building an innovation dynasty: how to build an engine that
makes innovation more repeatable. Infosight Whitepaper. Available at: www.innosight.com.
- [2] Anthony, S.D., Johnson, M. & Sinfield, J.V. 2008. Institutionalizing innovation, MIT Sloan Management Review,
49(2): 45-53.
- [3] Beneke, J., Blampied, S. 2012. Driving Consumer Perceptions through Facebook: An Investigation into
Empowering Brands in the 21st Century. The South African Institute of Management Scientists (SAIMS) 1987-
2012.
- [4] Bentler, P. M., & Bonett, D. G. (1980). Significance Tests and Goodness-of-Fit in the Analysis of Covariance
Structures. Psychological Bulletin, 88: 588-600.
- [5] Berndt, M.C. & Petzer, D. 2013. Marketing Research. Cape Town: Pearson Education South Africa
- [6] Bramante, R., Petrella, G., & Zappa, D. (2015). On the use of the market model R-square as a measure of stock
price efficiency. Review of Quantitative Finance and Accounting, 44(2), 379-391.
- [7] Brennan, S. & Kreiss, D. 2014. Digitalization & Digitization. Available at: http://culturedigitally.org/
2014/09/digitalization-and-digitization. (Accessed: 18 October 2017).
- [8] Byrne, B.M. 2013. Structural Equation Modeling with LISREL, PRELIS, and SIMPLIS: Basic concepts,
applications and programming. Lawrence Erlbaum Associates Inc. ISBN 0-8058-2924-5.
- [9] Chen, Y.Q., Zhang, Y.B., Liu, J.Y. and Mo, P., 2011. Interrelationships among critical success factors of
construction projects based on the structural equation model. Journal of Management in Engineering, 28(3),
pp.243-251.
- [10] Chinomona, R., 2011. Non-mediated channel powers and relationship quality: A case of SMES in Zimbabwe
channels of distribution. Unpublished PhD. National Central University, Taiwan.
- [11] Chin, W.W. and Newsted, P.R., 1999. Structural equation modeling analysis with small samples using partial
least. squares. Statistical strategies for small sample research, 1(1), pp.307-341
- [12] Christensen, C.M. 2006. The ongoing process of building a theory of disruption, Journal of Product Innovation
Management, 23: 39-55.
- [13] Dockens, W.S 1979. Induction / Catastrophe Theory: A behavioral Ecological Approach to Cognition in Human
Individuals. Behavioral Science. 24(2): 94 – 111.
- [14] Dunn, S.C., Seaker, R.F. and Waller, M.A., 1994. Latent variables in business logistics research: scale
development and validation. Journal of Business logistics, 15(2).
- [15] Drnevich, P.L. & Kriauciunas, A. 2011. Clarifying the conditions and limits of the contributions of ordinary and
dynamic capabilities to relative firm performance, Strategic Management Journal, 32: 254-279.
- [16] Fagarasanu, M. & Kumar, S. 2002. Measurement instrument and data collection: a consideration of constructs
and biases in ergonomics research. International Journal of industrial ergonomics. 30(6): 355-369.
- [17] Geigher, S., Le Roux, E. & Bothma, T. 2014. The Predictive Value of Disruptive Technology Theory for Digital
Publishing in the Traditional Publishing Environment: A South African Case Study, Journal Of Scholarly
Publishing, 45(3): 261-288. (Accessed: 11 June 2015).
- [18] Gimpel, C. & Westerman, G. 2012. Shaping the future: Seven enduring principles for fast changing industries,
MIT Center for Digital Business.
- [19] Glendenning, C.J. & Ficarelli, P.P. 2011. Content development and management processes of ICT initiatives in
Indian agriculture. Article first published online: December 9, 2011; Issue published: November 1, 2011.
International Livestock Research Institute, New Delhi, India Volume: 27 issue: 4, page(s): 301-314
- [20] Grace, J.B., 2006. Structural equation modeling and natural systems. Cambridge University Press.
- [21] Hair, J.F. J., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer On Partial Least Squares
Structure Equation Modeling (PLS-SEM). Sage Publications Inc.
- [22] He, Y., Gai, Y., Wu, X. and Wan, H., 2012. Quantitatively analyze composition principle of Ma Huang Tang by
structural equation modeling. Journal of ethnopharmacology, 143(3), pp.851-858.
- [23] Hirota, N. 2016. Impact of new technologies (revolutionary change) on a firm’s existence. Explanation of
Disruptive Innovation of Clayton Christensen (1997). 12 Manage.com
- [24] Johnson, R.B. & Onwuegbuzie, A.J. 2004. Mixed Methods Research: A Research Paradigm Whose Time Has
Gone, Educational Researcher, 33(7): 14-26.
- [25] Johnson, R.B. & Christen, L. 2008. Educational Research Quantitative, Qualitative and Mixed Method
Approaches. 3rd Ed. Thousand Oaks, CA: Sage Publications.
- [26] Karimi, J. & Walter, Z. 2015. The Role of Dynamic Capabilities in Responding to Digital Disruption: A Factor-
Based Study of the Newspaper Industry. Journal of Management Information Systems, 32(1): 39-81. (Accessed:
17 July 2015).
- [27] Kichner, L. 2005. Will “digital first” bring home the bacon? Columbia Journalism Review. Available at:
www.cjr.org.
- [28] Kim, S. & Lee, H. 2006. The impact of Organisational Context and Information Technology on Employee
Knowledge – Sharing Capabilities. Wiley Online Library. Public Administration Review. Vol. 66, No.3 (May –
June 2006) pp. 370-385.
- [29] Lakoff, J. & Johnson, M. 1987. Metaphors We Live By. Chicago, IL: The University of Chicago Press. ISBN 0-
226-46801-1.
- [30] Liljander, V. Polsa, P., Van Riel, A. 2009. Modelling consumer responses to an apparel store brand. Elsevier.
- [31] Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in partial least squares path modeling: Helping
researchers discuss more sophisticated models. Industrial management & data systems, 116(9), 1849-1864.
- [32] Nusair, K. and Hua, N., 2010. Comparative assessment of structural equation modeling and multiple regression
research methodologies: E-commerce context. Tourism Management, 31(3), pp.314-324.
- [33] Makhaya, T. & Nhundu, N. 2015. Competition Barriers to Entry and Inclusive Growth in Retail Banking:
Capitec Case Study. Centre of Competition Regulation and Economic Development (CCRED), University of
Johannesburg. Cited in Bloomberg Article.
- [34] Mantena, R. & Saha, R. 2012. Co-opetition between differentiated platforms in two-sided markets, Journal of
Management Information Systems, 29(2): 109-139.
- [35] McKinsey & Co. 2014. Building up your digital quotient: How to harness digital to accelerate business
performance. McKinsey Digital.
- [36] Meyer, M.H. & Lehnerd, M.A. 1997. The Power of Product Platforms, Building value and cost leadership. New
York, NY: New York Free Press.
- [37] Meyer, M.H. & Lehnerd, M.A. 1997. The Power of Product Platforms, Building value and cost leadership. New
York, NY: New York Free Press.
- [38] Milliot, J. 2015. Hastings Fights Digital Disruption 2014, Publishers Weekly, 261(19): 7. (Accessed: 20 July
2015).
- [39] O’Reilly, C.A. & Pfeffer, J. 2000. Hidden value: How great companies achieve extra-ordinary results with
ordinary people. Boston, MA: Harvard Business School Press.
- [40] Owusu, A., Agbemabiasie, G. C., Abdurrahaman, D. T., & Soladoye, B. A. (2017). Determinants of Business
Intelligence Systems Adoption in Developing Countries: An Empirical Analysis from Ghanaian Banks. The
Journal of Internet Banking and Commerce, 2017.
- [41] Owusu, A., Agbemabiasie, G. C., Abdurrahaman, D. T., & Soladoye, B. A. (2017). Determinants of business
intelligence systems adoption in developing countries: An empirical analysis from Ghanaian Banks. The Journal
of Internet Banking and Commerce, 1-25.
- [42] Qureshi, S.M. and Kang, C., 2015. Analysing the organizational factors of project complexity using structural
equation modelling. International Journal of Project Management, 33(1), pp.165-176.
- [43] Ringle, C.M., Wende, S. and Will, S., 2005. SmartPLS 2.0 (M3) Beta, Hamburg 2005.
- [44] Sarstedt, M., Ringle, C.M., Smith, D., Reams, R. and Hair Jr, J.F., 2014. Partial least squares structural
equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business
Strategy, 5(1), pp.105-115.
- [45] Schumacker, R.E. & Lomax, R.G., (2004). A beginner’s guide to structural equation modeling. Psychology Press.
- [46] Sekaran, U. 2003. Research Methods for Business: A Skill Building Approach. Singapore: John Wiley and Sons
Inc.
- [47] Soat, M. 2015. Digital disruption and the death of storytelling, Marketing News, 4: 36. (Accessed: 20 July 2015).
- [48] Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., & Lauro, C. (2005). PLS path modeling. Computational statistics
& data analysis, 48(1), 159-205.
- [49] Washington, S., Karlaftis, M.G. and Mannering, F.L., 2003. Statistical and econometric methods for
transportation data analysis (pp. 241-255). Boca Raton, FL: Chapman & Hall/CRC.
- [50] Wang, N., Liang, H., Zhong, W., XueE, Y. & Xiao, J. 2012. Resource structuring or capability building? An
empirical study of the business value of information technology, Journal of Management Information Systems,
29(2): 325-367.
- [51] Wang, C.L. & Ahmed, P. K. 2007. Dynamic Capabilities: A review and Research Agenda. Wiley Online Library.
- [52] Wetzels, M., Odekerken-Schröder, G., & Van Oppen, C. (2009). Using PLS path modeling for assessing
hierarchical construct models: Guidelines and empirical illustration. MIS quarterly, 177-195.
- [53] Zaidi, M.F.A., Othman, S.N. 2011. Understanding dynamic capability as an ongoing concept for studying
technological capability. Journal of Business and Social Science. Research.Net. Google Scholar.