Determinants of Agribusiness Sustainability: An Exploratory Factor Analysis

Abstract

The research conducted in this study focused on exploring the determinants of sustainability of agribusinesses. The study employed a cross-sectional survey design and targeted managers and operational staff working in agribusinesses affiliated with the National Association of Seed Traders of Ghana (NASTAG). The collected data underwent a series of statistical analyses, including exploratory factor analysis, principal component analysis, and varimax rotation. These analyses were performed on the questionnaires, which contained variables assessing the determinants of sustainability of agribusinesses. The findings of the study revealed some sustainability dimensions of agribusinesses in Ghana. These determinants were categorised into three dimensions: social, environmental and economic sustainability dimensions. These dimensions emerged after applying exploratory factor analysis, principal component analysis, and varimax rotation techniques. Together, these three dimensions accounted for 74.3% of the explained variance in the data. The identified sustainability determinants have both theoretical and practical implications for enhancing agribusinesses. They provide valuable insights into the specific areas that need attention and improvement to promote the long-term viability of agribusiness operations. However, despite the significance of these findings, the study also recommended that future researchers should consider exploring the interconnectedness and potential trade-offs between the economic, social, and environmental dimensions of agribusiness sustainability. It would be valuable to investigate the effectiveness of various strategies and interventions in achieving balanced sustainability outcomes across these dimensions.