Factors Influencing Coffee Growers’ (agents’) Performance on Quality: An Empirical Study of Coffee Growers with Evidence from Tanzania’s Coffee Primary Societies/Associations

Abstract

Significance of this study is centered at making contribution to literature
on principal agent relationship by focusing on the relationship between
coffee growers (agents) and principals (buying organizations). The
study investigates factors that influence quality performance of coffee
growers (agents) such as: information sharing, monitoring and
negative external influence. The main purpose of this study is to provide
an insight on how farmers and buyers relationships can be enhanced
in a better way to improve farmers’ performance on coffee quality.
Literature review with respect to principal agency theory guides
this study. The principal agency theory is used in formulating research
hypotheses, which provide foundation for testing developed
associations between coffee quality performance and information
sharing; as well as monitoring and negative external influence. Data
used in this study were collected from one hundred and thirty two (132)
primary societies’ managers in Tanzania through interviews and
questionnaires. Preliminary data analysis through plot box was
conducted to remove outliers. Also reliability and validity were tested
for purpose of making this study worth. As this study adopted multiple
regression analysis, then all assumptions underlying multiple regression
such as multicollinearity, homoscedasticity and Collinearity were tested
and all portrayed that assumptions were adhered to.
Empirical findings show that information sharing has a significant

positive association with coffee growers’ (agents’) performance.
Monitoring has a significant positive association with coffee growers’
(agents’) performance on quality. The findings further indicate that
there is a significant negative association between negative external
influence and coffee growers’ (agents’) performance on quality.
Therefore, to improve performance of coffee growers (agents) there
should be high information sharing and monitoring while learning on
how to respond positively to negative external influence.
Quality management is the key driving factor of coffee price in the
global market. Thus, all coffee supply chain actors should emphasize
quality management aspect in all business processes. To ensure quality
management among famers, then buying organizations should establish
strong information sharing and monitoring systems. Also, farmers
should learn how to positively respond to negative external influence
in ensuring that coffee quality is not impaired by negative external
influence.