International Journal of Rural Management, Volume 19, Issue 2, Page 214-233, August 2023.
The purpose of this study is to examine the relationship between financial leverage and financial performance of Savings and Credit Cooperative Societies in Tanzania (SACCOS). The study used a panel data set of 115 SACCOS in Tanzania in the period 2011–14 and fixed-effects models for analysis. The study considered the direct relationship between financial leverage and financial performance and the moderating effect of board meetings on the relationship between financial leverage and the SACCOS’s financial performance. The results show that financial leverage is negatively and significantly related to SACCOS financial performance. Also, board meetings have the significant and positive moderating effect on the financial leverage–financial performance relationship. Finally, the study suggests that SACCOS in Tanzania need to embrace more on mobilising internal funds from their members instead of relying on debt. This can reduce the dependence on debt which has been one of the operational costs’ drivers of the SACCOS in Tanzania.
Category Archives: International Journal of Rural Management
Understanding What Informs the Choice of Agro-Processing Firm Siting: Evidence from a Developing Country
International Journal of Rural Management, Volume 19, Issue 2, Page 189-213, August 2023.
This article investigates the complexity of factors that influence the location choice for agro-processing firms from a developing country and SME perspective. It further examines the underpinning role of government policies regarding the siting, operation and effectiveness of agro-processing firms. Using a quantitative methods research design, 124 randomly sampled agro-processing firms were surveyed. The collected data was analysed using exploratory factor analysis and logistic regression analysis. It emerged that business support, economic and socio-cultural factors had a direct impact on decisions regarding the siting of agro-processing firms. Also, the availability of raw materials and cheap labour equally contributes to such decisions. Government policies turned out to be ineffective in influencing decisions on the siting of agro-processing firms. In terms of policy, there is a need to refocus efforts to incentivise agro-entrepreneurs, open up access to sustainable funding options and build the innovative capacity of agro-processing firms. This is critical to attracting agro-processing investments to remote areas such as Northern Ghana to revamp the local economy. This article highlights the impact of policy on the location of agro businesses in developing countries and also demonstrates the nexus between the location of a business and its performance.
This article investigates the complexity of factors that influence the location choice for agro-processing firms from a developing country and SME perspective. It further examines the underpinning role of government policies regarding the siting, operation and effectiveness of agro-processing firms. Using a quantitative methods research design, 124 randomly sampled agro-processing firms were surveyed. The collected data was analysed using exploratory factor analysis and logistic regression analysis. It emerged that business support, economic and socio-cultural factors had a direct impact on decisions regarding the siting of agro-processing firms. Also, the availability of raw materials and cheap labour equally contributes to such decisions. Government policies turned out to be ineffective in influencing decisions on the siting of agro-processing firms. In terms of policy, there is a need to refocus efforts to incentivise agro-entrepreneurs, open up access to sustainable funding options and build the innovative capacity of agro-processing firms. This is critical to attracting agro-processing investments to remote areas such as Northern Ghana to revamp the local economy. This article highlights the impact of policy on the location of agro businesses in developing countries and also demonstrates the nexus between the location of a business and its performance.
Understanding Poverty and Survival Strategy among Ethiopian Pastoralists: The Boorana Pastoralists Perspectives
International Journal of Rural Management, Volume 19, Issue 2, Page 171-188, August 2023.
Poverty is often assessed using rigorous economic methods in the extant literature. Nonetheless, understanding poverty through supposedly rigorous economic methods per se is not sufficient. This study argues that Boorana pastoralist’s knowledge of poverty and its survival strategy provides foundations to understand poverty. The article was based on a dominantly qualitative mixed research approach to understand poverty from the perspectives of pastoralists in an African context (Ethiopia). Different participatory poverty assessment methods, like focus group discussions and interviews were used. The interviews were conducted with case study households and key informants. The data were analysed by descriptions of responses and narrations of cases. The results showed that pastoralists perceive poverty as a lack of livestock, low health, lack of money, lack of education and jobs. The findings also showed that climate change and variability, deterioration of pasture and water resources, lack of education and overutilisation of resources were the main causes of poverty. Boorana pastoralists perceive that diversification of income sources, crop cultivation, improvements to pastoral education, destocking and returning to forefathers’ cultural practices can be the main survival strategy of pastoralists against poverty. Therefore, there is a need to understand the dynamics of pastoral poverty for appropriate policy interventions.
Poverty is often assessed using rigorous economic methods in the extant literature. Nonetheless, understanding poverty through supposedly rigorous economic methods per se is not sufficient. This study argues that Boorana pastoralist’s knowledge of poverty and its survival strategy provides foundations to understand poverty. The article was based on a dominantly qualitative mixed research approach to understand poverty from the perspectives of pastoralists in an African context (Ethiopia). Different participatory poverty assessment methods, like focus group discussions and interviews were used. The interviews were conducted with case study households and key informants. The data were analysed by descriptions of responses and narrations of cases. The results showed that pastoralists perceive poverty as a lack of livestock, low health, lack of money, lack of education and jobs. The findings also showed that climate change and variability, deterioration of pasture and water resources, lack of education and overutilisation of resources were the main causes of poverty. Boorana pastoralists perceive that diversification of income sources, crop cultivation, improvements to pastoral education, destocking and returning to forefathers’ cultural practices can be the main survival strategy of pastoralists against poverty. Therefore, there is a need to understand the dynamics of pastoral poverty for appropriate policy interventions.