Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya

Vertical coordination in agriculture has received popularity in recent years. They have emerged to transform farm enterprises from subsistence farming to commercially oriented production. Despite the importance attached to them, some farm enterprise owners are involved in side selling even though th...

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Main Authors: Janet Sigara Nyamamba, Oscar Ingasia Ayuya, Kenneth Waluse Sibiko
Format: Article
Language:English
Published: Taylor & Francis Group 2022-01-01
Series:Cogent Economics & Finance
Subjects:
Online Access:http://dx.doi.org/10.1080/23322039.2021.1986932
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author Janet Sigara Nyamamba
Oscar Ingasia Ayuya
Kenneth Waluse Sibiko
author_facet Janet Sigara Nyamamba
Oscar Ingasia Ayuya
Kenneth Waluse Sibiko
author_sort Janet Sigara Nyamamba
collection DOAJ
description Vertical coordination in agriculture has received popularity in recent years. They have emerged to transform farm enterprises from subsistence farming to commercially oriented production. Despite the importance attached to them, some farm enterprise owners are involved in side selling even though they are committed to specific vertical coordination strategic options. Factors influencing this behaviour are still unclear in the empirical literature. This study intends to bridge this gap by determining the extent of side selling in sorghum supply chains in Kisumu County. A stratified sampling technique was used to collect data from 266 sorghum farm enterprises. Primary data was obtained through interviews using a pre-tested semi-structured questionnaire administered by trained enumerators. The study used Fractional Response Model to determine the extent of side selling among sorghum farm enterprises. Results from Fractional Response Model reveal that farming experience, better prices from alternative markets, neighbourhood effect, frequency of contacts, low bargaining power and network externalities influence side selling positively. Whereas other forms of income, land size, credit access and trust reduces the probability of side selling. These results indicate that policymakers should generate policies that will strengthen the legal institutions in agriculture regarding breaching of agreements reducing the side selling behaviours of sorghum producers.
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spelling doaj.art-5e7bd898ffde48e5b71ed4f482a8102b2022-12-21T19:38:27ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-01-0110110.1080/23322039.2021.19869321986932Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, KenyaJanet Sigara Nyamamba0Oscar Ingasia Ayuya1Kenneth Waluse Sibiko2Egerton UniversityMaseno UniversityMaseno UniversityVertical coordination in agriculture has received popularity in recent years. They have emerged to transform farm enterprises from subsistence farming to commercially oriented production. Despite the importance attached to them, some farm enterprise owners are involved in side selling even though they are committed to specific vertical coordination strategic options. Factors influencing this behaviour are still unclear in the empirical literature. This study intends to bridge this gap by determining the extent of side selling in sorghum supply chains in Kisumu County. A stratified sampling technique was used to collect data from 266 sorghum farm enterprises. Primary data was obtained through interviews using a pre-tested semi-structured questionnaire administered by trained enumerators. The study used Fractional Response Model to determine the extent of side selling among sorghum farm enterprises. Results from Fractional Response Model reveal that farming experience, better prices from alternative markets, neighbourhood effect, frequency of contacts, low bargaining power and network externalities influence side selling positively. Whereas other forms of income, land size, credit access and trust reduces the probability of side selling. These results indicate that policymakers should generate policies that will strengthen the legal institutions in agriculture regarding breaching of agreements reducing the side selling behaviours of sorghum producers.http://dx.doi.org/10.1080/23322039.2021.1986932side sellingsupply chainvertical coordination strategic optionsvertical coordination
spellingShingle Janet Sigara Nyamamba
Oscar Ingasia Ayuya
Kenneth Waluse Sibiko
Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
Cogent Economics & Finance
side selling
supply chain
vertical coordination strategic options
vertical coordination
title Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
title_full Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
title_fullStr Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
title_full_unstemmed Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
title_short Determinants of side selling behaviour in emerging sorghum supply chains in Kisumu County, Kenya
title_sort determinants of side selling behaviour in emerging sorghum supply chains in kisumu county kenya
topic side selling
supply chain
vertical coordination strategic options
vertical coordination
url http://dx.doi.org/10.1080/23322039.2021.1986932
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AT kennethwalusesibiko determinantsofsidesellingbehaviourinemergingsorghumsupplychainsinkisumucountykenya