The determinants of farmer entrepreneurial intention: A case study in Vietnam’s dairy sector

Thi My Hanh Do

Entrepreneurial intention (EI) represents a person’s willingness to begin a new business. To date, little attention has been directed toward understanding EI within an agricultural setting. This study aims to understand better how farmer EI is shaped within a developing country context. As pressures grow on farmers to shift toward more commercially sustainable agricultural operations, insights into EI may assist industry stakeholders in better navigating this transition. This study uses a holistic model to explain the formation of farmer EI in the context of the Vietnamese dairy sector. The research model draws on Social Cognitive Career Theory (SCCT) and is refined to address contextual factors faced by dairy farmers in Vietnam. The research model used is the first to combine contextual factors (perceived support and perceived barriers) and personal cognitive factors (entrepreneurial self-efficacy, outcome expectations, and entrepreneurial intention) to investigate the formation of farmer EI. The model was empirically tested with 180 dairy farmers responsible for small- and medium-sized farms in three provinces in North Vietnam using a face-to-face survey questionnaire. The study used a partial least square structural equation modelling technique (PLS-SEM) to test the hypotheses. Study results indicate that the research model fits the data and is robust in explaining farmer EI. The study found farmer EI to be affected by cognitive and contextual factors, with perceived barriers having a particularly strong negative influence. By contrast, farmer entrepreneurial self-efficacy positively affects EI. The study found role models to affect farmer EI negatively. This research offers valuable insights of use to policymakers seeking to stimulate agricultural entrepreneurship in a developing world context. It also advances the application of SCCT in an agribusiness setting, highlighting the importance of contextual factors in explaining EI.

The determinants of farmer entrepreneurial intention: A case study in Vietnam’s dairy sector

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