Analysis of effect of institutional isomorphism on cashew nut farming business sustainability in Tanzania: Mediating role of market stakeholder’s action

Abstract

The effect of institutional isomorphism on cashew nut farming business sustainability in Tanzania through market stakeholders’ action was analysed in this study. The study explicitly sought to examine the effect of institutional isomorphism on business sustainability, market stakeholders’ actions on business sustainability, and the mediating effect of market stakeholders’ actions on the association between institutional isomorphism and business sustainability. An explanatory design, backed by simple random sampling, was utilized in choosing 360 respondents. Information for the study was gathered using a structured questionnaire and analysed by structural equation modelling. Outcomes show that institutional isomorphism had a positive and significant effect on business sustainability. Market stakeholders’ action was also found to have a positive and significant effect on business sustainability. Further results exposed the partial mediation effect of market stakeholders’ action on the relationship between institutional isomorphism and business sustainability. The study concluded that the prediction of business sustainability can be precisely articulated by institutional isomorphism and market stakeholders’ actions. Market stakeholders’ action was also proved to mediate the relationship between institutional isomorphism and business sustainability partially. Thus, the study recommends that, for the cashew nut farming business in Tanzania to be sustainable, farmers should comply with isomorphic pressures issued by governing institutions. It is also recommended that market stakeholders’ actions should be given consideration by governing institutions as they have effects on achieving sustainability.