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.
