Success Factors Associated with Frugal Business Modelling: An Exploratory Factor Analysis

Abstract

The research conducted in this study focused on exploring the success factors associated with frugal business modelling in the context 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 success factors related to frugal business modelling. The findings of the study revealed several success factors that aid frugal business modelling in Ghana. These success factors were categorised into six factors: coordination, information and dissemination, regulation and supervision, funding, service delivery, and the institutional framework. These factors emerged after applying exploratory factor analysis, principal component analysis, and varimax rotation techniques. Together, these six factors accounted for 77.9% of the explained variance in the data. The identified success factors have both theoretical and practical implications for enhancing the sustainability of 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 the exploration of longitudinal studies. Conducting longitudinal research would provide an understanding of specific policies, regulations, and supportive measures needed to promote the adoption of frugal business models to create an enabling environment for their implementation.