04 Abstract
04 Abstract
04 Abstract
SUPERVISOR SCHOLAR
1. INTRODUCTION 1
2. REVIEW OF LITERATURE 3
3. RESEARCH GAP 7
4. OBJECTIVES 8
5. HYPOTHESIS 9
6. JUSTIFICATION 9
7. RESEARCH METHODOLOGY 10
9. MANAGERIAL IMPLICATIONS 29
12. REFERENCES 32
Appendix
INTRODUCTION
Digitalization has given rise to buyers who use the web for information search and direct
purchases. To keep up with this, the marketing activities of businesses have evolved from
traditional to ubiquitous ones. Hence, an emergence of ‘Digital marketing’ or e-marketing,
which is defined as the identification and satisfaction of buyer needs in the digital environment
(Chaffey & Chadwick, 2019) is being witnessed. Evidence from countries such as Greece,
Africa, Ireland and India, point at the initial wave of digitalization and the early-stage e-
transition of businesses (Galliano & Orozco, 2011; Rodrigues & Rodríguez, 2013; Warwimbo,
2017). Affordable internet access, government pressures and robust network support are
making more firms jump on the bandwagon. The initiatives of techno giants and IT vendors
are also noteworthy. For example, Google India's initiatives called the “Get Your Business
Online” offers affordable web hosting services and public support to small businesses and have
resulted in first stage web exposure for contemporary marketing. However, Warwimbo (2017)
found that the viability is inextricably limited by slow adoption in specific sectors despite
favourable dynamics.
One sector with great potential in the global context is the agri-businesses, including all profit-
motivated enterprises dealing in input, output processing, marketing, transport, and distribution
of agricultural raw and finished products (Ricketts and Rawlins, 2001). As the indispensable
addressee to the global food demand, agribusinesses around the world are estimated to feed 10
billion people by 2050 (World Resource Institute, 2018) and contribute to 27% of global
employment, with 55% in the least developed countries and 42% in India alone (World Bank,
2019). It also acts as a catalyst for developing efficient and robust value chains. Furthermore,
vibrant agro-industrial activities can expand the markets for primary agricultural products, add
value by vertically integrating primary production and food processing systems and minimize
post-harvest losses. In a nutshell, agribusinesses can act as mediators, custodians and resource
mobilisers for the rest of the players in the sector, thereby paving the way for the downtrodden
sector. As a mediator, agribusinesses can support a transformation in agriculture production
from both the input and output sides. From the input side, the production of animal feeds,
breeds, and seeds is pertinent. On the output side, such units help meet the growing demand
for processed and quality food. As a Custodian of global food security, modern-day
agribusinesses help increase distribution and reduce barriers in agri-marketing. This, in turn,
supports equitable income distribution and economic growth. Lastly, as resource mobilisers,
agri processing firms perform the dual role of infrastructure and transport development and
resource mobilisation. This helps overcome the limited demand in rural areas and expand it to
urban area. It also supports demand generation through improved quality and variety. Though
it provides livelihoods to more than half of India’s workforce, the sector contributes to less
than one-fifth of the country’s GDP. The agriculture sector does not exist in isolation. It is
supported through an integrated set of activities ranging from input production such as
agrochemicals, and fodder, to food processing, marketing (labelling, advertising and
financing), R&D and final selling. With the current state of the agricultural sector no longer
confined to farm activities, a transition to value-driven, market-oriented pursuits is evident.
India is a leading producer, manufacturer and exporter of highly sought after-and unique
outputs. Yet, it struggles with information deficiencies, networking gaps, price volatility, high
competition and limited market access (Gandhi, 2014). Consumer demand is also rapidly
changing, and intense competition calls for improved coordination and planning between agri-
stakeholders. The traditional market trend has also shifted beyond the traditional focus on
efficiency and pure production orientation to one incorporating a broader system perspective
(Konig et al., 2013). Thus, new approaches involve value chain integration through a clearer
understanding of future customer requirements and an emphasis on contemporary marketing.
To cope up with this, many private players have started going digital. As a large part of dealings
in agribusinesses (such as materials, final products etc.) is carried out from diverse sources,
purchasing behaviour in agriculture supply chains can be compared to industrial buying
behaviour. This kind of organizational purchasing behavior is said to involve a complicated
decision-making and communication process with many participants, both inside and outside
the purchasing organization. Therefore, the present study aims to investigate the use of digital
marketing among agribusiness in a specific geographical context. It also attempts to unveil the
barriers and obstructions for future e-business use and suggest strategies for the improving
performance.
REVIEW OF LITERATURE
The decreasing gap between farm and non-farm activities, rising intermediaries' bargaining
power, competitive rivalry, and the rising business-to-business interlinks require the
identification of innovative ways of outreach to enhance their marketing potential (Palmer &
Steed, 2011; Caiazza & Bigliardi, 2020). The sector faces product, information, and
relationship challenges, and digital tools offer a potential solution (Broring, 2008; Bouris et al.,
2011; Zhou, 2019). Communication helps understand consumer tastes and preferences and
integrate them into businesses' marketing strategies, thereby supporting the transition from
producer-driven to buyer-driven ones amidst global techno innovations (Grewal & Levy,
2010). Since the sector is highly resource- and network-intensive, digital interactivity can be
mutually advantageous for all agents across the value chain (Aleke et al., 2010).
Digitalization has given rise to buyers who use the web for information search and direct
purchases. To keep up with this, the marketing activities of businesses have evolved from
traditional to ubiquitous ones. Hence, an emergence of ‘Digital marketing’ or e-marketing,
which is defined as the identification and satisfaction of buyer needs in the digital environment
(Chaffey & Chadwick, 2019) is being witnessed. Previous studies have conducted enquiries
into the use of digital marketing among organisations of different sizes (Brady et al., 2002;
Barba-Sánchez & Jiménez-Zarco, 2007; Misra et al., 2015; Wolcott et al., 2008; Taylor, 2019;
Hassan et al., 2019); of different segments such as retail (Barlow et al., 2004); service (Cole et
al., 2017) and manufacturing (Bayo‐Moriones et al., 2013). Scholarly evidence from different
countries has also stressed on the need to transform the traditional internal market into a
globalised one. For instance, a study in Taiwan advocated for a shift from conventional spot
markets to internet retailing for robust agri- supply distribution (Chen et al., 2011; Chen et al.
(2016) found either traditional sellers transitioning to e-commerce on their own or through
digital intermediaries (Strzębicki, 2015). The propelling of specialised agribusiness with
technology and market orientation has been suggested in the Indian context by Gandhi (2014).
Most recently, agribusiness research that delineates the impact of specific digital marketing
tools and holistic or integrated tools has become evident in the scholarship (such as using
particular software and applications). The former has included specific marketing operations
such as the internet (interactivities), social media (networking), or database management
(Mihajlovski, 2019; Santoso & Delima, 2017, March; Weerasingha and Hindagolla, 2018;
Ogunniyi & Ojebuyi, 2016). For instance, Chen et al. (2011) found that a single tool, social
media use, helped firms handle social networks, reach potential customers, and establish
relationships and loyalty. On the other hand, Viera et al. (2019) emphasised using not one but
various tools and technologies to create a digital 'echo verse. This collective perspective finds
much practicality in the firms belonging to emerging economies. Moreover, the ever-evolving
nature of the web (Web 2.0 to 3.0), digital ubiquity (Iansiti, M., & Lakhani, K. R. (2014), and
multiple functioning tools require an integrated approach.
Globally, the impact of the evolving digital space on business activities intensified from 1999
to 2004, commonly conferred as the dot com era. In a first, Henderson et al. (2006) examined
perceptual differences related to internet use among agribusinesses in the United States. More
recently, Strezebicki (2015) assessed the development of e-agribusinesses in Poland and found
that the development was at an early stage and susceptible to evolutionary changes. Similarly,
Bowen & Morris (2019), in their study of agri-farmers and processing agribusinesses of rural
Wales, indicated a poor and restricted use of digital tools, leading to a wide digital gap.
Jankulovska et al. (2017) studied e-marketing in Macedonian agribusinesses. They found
turnover as a critical determinant of website adoption, and e-commerce formed only 5% of the
total sales indicating its low extent of use). In terms of use , Casey et al., (2016) found mobile
apps to be frequently used by agribusinesses in New zealand and there was a positive relation
between the demographic variable of age and mobile app use, wherein younger people used it
more than the older ones. Otter, V., & Theuvsen, L. (2013) in Chile found that local
agribusinesses were increasingly relying on mobile phones for information sharing and
achieving performance goals. Some studies also held contrary findings where different digital
tools were compared and their suitability established on the basis of the nature of businesses
and the extent of interactivities required. As an example, social media use was considered as
least effective for communication and relationship building in industrial marketing fields.
(Salo, 2017; Iankova, et al., 2018).
Perceived Benefits of Digital Marketing Tools
The IT/IS literature also proposes 'usefulness' as a determinant of a favorable attitude towards
technology. Despite the mention of isometric construct in several theories like TAM and
UTAUT, the need to trace the theory of perceived usefulness or benefits is profound. An in-
depth theory analysis can contribute to the novelty of IT/IS implementation research. This
formed the basis of recent studies by Salo et al. (2013), who conceptualized Perceived benefits
as perceived usefulness. Similarly, Lee, (2009) and Assegaff et al., (2011) added the specific
perceived benefits and risks to the existing TAM variables for studying technology acceptance.
Furthermore, the perceptions differ based on geographies, firm age, and types (Lu et al., 2018).
Effort expectancy or Ease of use may be defined as the subjective probability that the use of a
specific technology would be free of effort. This can be measured objectively, such as through
task completion time and error rates, as well as objectively- based on user perceptions and is
considered more relevant to user decisions to use or not use a system (Davis, 1989; Lee, 2009).
Hawley et al. (2018) studied the relationship between perceived ease of use and perceived
usefulness with social networks like blogs, Instagram and Pinterest and found a positive
correlation among them. Furthermore, perceived ease of use influences perceived usefulness
since effort-saving abilities add to the desirability of the system. (Davis et al 1989; Tripopsakul,
2018). Engotoit et al., (2016), in their study of Ugandan Agribusinesses, found a significant
influence of effort expectancy on behavioural intention to use mobile-based technology.
Kanchanatanee, et al., (2014) in their study of SME business owners in Thailand identified
Perceived ease of use as a significant factor affecting attitude towards e-marketing intention
but not directly affecting the intention to use e-marketing. Ibrahim et al., (2018) found effort
expectancy or ease of use to have a weak impact on technology adoption and use, thus pointing
to the potential rise in user-friendly technologies.
Perceived Barriers
While some of these barriers are country-specific, others can be common across nations with
similar industry, development or entrepreneurial characteristics. Several theories for the basis
of these categorizations, such as the Innovation Resistance theory (IRT, 1989). The IRT uses
functional and psychological barriers as the main factors hindering the usage of technologies.
Bowen & Morris, (2019) classified major barriers to adopting and using digital marketing tools
into technical and non-technical categories. Demirbas et al., (2011) in their study of Turkish
SME found formal, informal, skill and environmental barriers as the major ones perceived by
the owner-managers. More specifically, lack of government support, R&D and negative impact
of informal economy on investment economy significantly affected the SME’s tendency to
innovate. A similar study in Botswana used snap-shot survey methodology to delineate lack of
active website for e-commerce, local reach, slow internet speed, government regulations and
supplier preferences as key barriers for ICT adoption (Shemi, 2013). Kotey & Sorensen, (2014)
renamed the barriers to business innovation as ‘common’ barriers and ‘unique’ barriers. Jain et
al. (2015), in the Indian context, claimed that there was a need to consider localization and
integrate native languages in the mobile technology sphere. Similarly, Chakraborti et al.,
(2022), found usage, value, risk and psychological barriers to be the major inhibitors of digital
marketing adoption by start-ups, and the significance of this impact varied in the study area
due to the moderating influence of age and gender of the owner-manager and size of the
company.
Marketing Performance
Studies that have explored the relationship between digital marketing and marketing
performance have produced mixed results in different sectors. For example, Tsiaotso &
Vlachopoulou (2011) found e-marketing to affect service business performance positively.
Similarly, Qashou & Saleh (2018) studied e-marketing implementation in small and medium-
sized and found it to be positively related to marketing performance. In the industrial sector,
Sheikh et al. (2017) delineated the growth of e-marketing in the business-to-business industry
and its effect on firm performance. Firm performance was measured subjectively, and e-
marketing was found to positively impact firm performance and mediate between the
antecedents and outcomes. However, contrary findings by Coviello, Winklhofer & Hamilton
(2006); Iddris & Ibrahim (2015) show a weak relation between digital and electronic marketing
tools and marketing performance in general. The findings have been supported by Avlonitis
and Karayani (2000). Deloitte (2013), in their Australian study, found that high digitally
engaged small businesses (either through websites or digital marketing channels) are likely to
have twice the revenue per employee as firms with low digital engagement.
Table 1: Relationship between Digital marketing tools and Performance
RESEARCH GAP
Businesses are becoming more aware of various digital marketing techniques lately. While
some usage is mandated (B2G), others have been adopted voluntarily as a result of the hype
generated by external support personnel and industry participants including ISP service
providers, the government, e-marketplaces, and others. Government flagship initiatives like
Digital India and the involvement of tech behemoths like "Google my Business" have widely
publicised the benefits of such technology in the Indian digital ecosystem. However, there
aren't many businesses or owner-managers who have specific understanding on practical
application and long-term strategic thinking.
Given the uniqueness of digital channels and the quick changes in its object and themes, there
is an urgent need to approach IT as a comprehensive and integrated resource (Lipaj &
Davidaviciene, 2013). E-marketing and digital marketing should consider a variety of internet-
based and non-internet-based channels that enable businesses to promote consumer
connections, rather than focusing just on internet communication (Jarvinen et al 2012,’s
Shaltoni, 2016, Liu, Karahanna and Watson, 2011). Therefore, it is equally vital to look deeper
into the context of how users and IT artefacts are used to identify usage patterns. Additionally,
enquiry is needed to conclude whether or not general ideas of technology used by firms apply
in the specific agri industry context (Aleke et al. 2010). The Thirdly, varying socio-economic,
political, or cultural dimensions have hindered the ground-level inquiry into the adoption and
use patterns in developing nations (Doe et al., 2017; Lipaj& Davidaviciene, 2013). As a result,
studies encompassing closed cultural contexts, particularly in the Indian space, are needed so
that their circumstances can frame the topicality of this field. Last but not least, the majority of
the literature focuses only on researching consumers' viewpoints; sellers' perspectives have
received little scholarly attention.
3. To find the extent of usage of digital marketing tools for agribusinesses in study area.
4. To evaluate the ease of use and perceived benefits of digital marketing tools for B2B
agribusinesses.
H1: The extent, ease of use and perceived benefits of digital marketing tools do not vary
significantly in the select organizations.
H1a: There is no significant difference in the extent of tools used for digital marketing in the
organizations under study.
H1b: There is no significant difference in the perceived ease of use of digital marketing tools
in the study area.
H1c: There is no significant difference in the perceived benefits of digital marketing tools in
the study area.
H2: The level of awareness of government schemes varies significantly in the study area.
The marketing of farm products is regarded as unique and deserves special attention (Bojkic et
al., 2018). Leveraging digital and incorporating data-based operational decisions can propel
conducive economic dynamics by enhancing bargaining power and aiding in better production-
marketing planning and quick decision-making within the sector. Thus, opportunities presented
by digital technologies in agribusiness marketing are manifold, yet its actual usage in the value-
creation process varies from country to country. This imbalanced usage remains a point of
contention as the creation of techno-centric business ecosystems has been a prime concern for
think tanks globally. For businesses in developed countries, digital technologies are no longer
just supporting factors. Instead, they form the micro-level critical success factors (CSF).
Emerging economies, on the other hand, such as India, not only have a much slower adoption
rate but vary in their patterns of diffusion and resource availability. Thus, despite technology's
cost-efficient and collaborative nature, much of the literature and research indicates gaps in the
ground-level digital adoption of developing countries' agribusinesses. This gap has attracted
the attention of all stakeholders since the resultant inadequacy has both economic and
procedural repercussions.
RESEARCH METHODOLOGY
Research Design
This study uses a mixed method approach, thereby combining qualitative and quantitative
dichotomies. As a first step, pilot study was conducted using in depth interviews with 5
agribusiness owners/ managers engaged in B2B domain of Jammu. This helped in establishing
a foundation of the issues to be addressed in the questionnaire survey.
Primary sources: Primary data is the first hand or real time data that is collected by the
researcher for solving the research problem at hand. This was collected from owners and
managers of agribusinesses or agriprenuers involved in either manufacturing, processing,
trading and exporting of food based agri products in Jammu.
Secondary Sources: Secondary data, on the other hand, involves the use of data generated and
collected by others (such as government institutions, or other researchers) in the past for general
purposes. The research data has been obtained from various research papers, articles, books,
doctoral thesis, dissertations, annual reports and magazines. Department of Industries and
Commerce, Government of J&K, District Industries Centre, Industrial associations, Chambers
of Commerce and Industries and official websites of Directorate of Extension, Ministry of
Agriculture, APEDA, National informatics Centre (NIC) and other organizations.
The sampling process mainly involved in the following sequence viz., defining, the target
population, identifying the sampling frame, selecting a sampling method and determining the
sample size. The sampling method used for this selection of respondents is stratified sampling
followed by proportionate sampling.
The population for this research includes manufacturing and wholesale agribusinesses of the
erstwhile state (and present day Union Territory) of Jammu. Considering the richness and
versatility of the primarily agrarian Union territory, all food and nonfood-based agribusinesses
were included in study. The respondents comprised the owners-managers of Agribusinesses
based within the geographical boundaries of the division of Jammu over 6 months. The study
is confined to three districts of the Jammu division, namely Jammu, Samba and Kathua due to
the fact that major economic centres are located in these three regions (DIC, Jammu).
To fulfill the objectives of the study, reliable data on digital tools and their perceived benefits
and barriers is gathered from the key stakeholders. There are a number of B2B agribusinesses
across the value chain, but the study is confined to the functions of significant stakeholders-
i.e. processing firms and Wholesaling and Trading businesses in the study area.
Traders: This group of functionaries refers to those who are engaged in in study’s objectivist
marketing as well as output marketing. Input marketing refers to those traders who supply
required inputs such as fertilizers, seeds, and pesticides etc.; output marketing, on the other
hand, refers to the traders who market final commodities in the domestic market. These traders
are also classified as big, medium and small based on their turnover.
Processors: As per the J&K Industrial Policy 2021, MSMEs in the UT contribute around 8%
to the GSDP to total industrial sector employment sector (Industrial Policy UT, 2021).
Currently, around 25000 MSMEs are operational, and colossal scope exists for agro and food-
based processing in the future. The study defines processors as converting raw commodities
into value-added Agri products. Even in this group, there are big processors who process a
large quantity of these commodities. The processors are also classified into four categories such
as micro, small, medium, and large enterprises, based on their investments. Agro-food industry
involves processing agriculture and horticulture produces with cleaning, grading, processing,
packaging, storage, transportation, and marketing. The basic economic premises of the agro-
food processing industries include value addition of the agricultural and horticulture raw
produce by way of the handling and processing operations (Silva & Baker, 2009; Rais et al.,
2013).
Sampling Frame
A sampling frame consists of the representation of the elements of the target populations. Since
the study has been confined to three districts of Jammu division, namely Jammu, Samba and
Kathua, the frame for processing units was drawn from District industries Centre (DIC) and
Chambers of Commerce and industries (CII), of the division. For the agri traders, designated
market clusters were first identified in the given districts, followed by a list from the respective
associations
Instrument Development
The process of questionnaire formulation involved phases. A preliminary draft of the research
instrument was generated by reviewing the literature on digital marketing, e-marketing, IT
integrated marketing literature in agribusiness and other allied sectors. This led to the
modification and addition of new items to make it suitable for B2B agribusinesses in the study
area context. The list was finalized with the help of two academicians familiar with the research
in the given area.
• Section A: Profile of the business- such as location, investment, nature of product, type
of internet connection, etc.
• Section B : Statements related to the extent and pattern of use, ease and perceived
benefits of digital marketing tools (For the extent and pattern of use, the scale was
labelled from ‘Never’ =1 to ‘Always’=5 and for Percieved Ease of use/ Percieved
benefits from ‘Strongly Disagree’=1 to ‘Strongly Agree=5’)
• Section C: Questions to assess the awareness level of various government schemes for
businesses.
Pretesting
The instrument’s reliability has been tested by measuring the value of Cronbach’s alpha
and Composite reliability. The internal reliability was checked for 13 constructs with
48 items, and further reliability of each construct was also checked. . It clearly shows
the measured value of Cronbach’s alpha coefficient to be greater than 0.7 which
highlights the high reliability of all the elements of the constructs. Therefore, all items
used in the scale had a good internal consistency and thus were found to be reliable.
Composite reliability measures the overall reliability of a set of items loaded on a latent
construct. The value ranges between 0 to 1. The value greater than 0.70 represents good
reliability (Hair et al., 2010). Composite reliability has been measured with the help of
following formula (Hair et al., 2010):
Construct Validity
It is assessed in terms of content, face and constructs validity. Construct validity can be further
measured in two ways: convergent validity and discriminant validity (Hair et al., 2009).
Content validity, also known as logical validity, is the extent to which a measure represents all
dimensions of a given construct. It requires subject matter experts to determine if the items
correspond to the required content (Hair et al. 2010).
Convergent validity evaluates the degree of correlation between two measures of the same
topic. It was found to be as satisfactory (Malhotra, 2008) as the correlations between the values
were higher than 0.50, and the items were significant. Additionally, the commonalities of every
item were above 0.50, demonstrating convergent validity. The level of distinction between two
conceptually similar concepts is known as discriminant validity. A low correlation between
two constructs, which indicates that one construct is different from another, is necessary to
demonstrate this form of validity (Hair et al., 2009; Zaiţ & Bertea, 2011). The constructs had
correlations of less than 0.30, demonstrating discriminant validity.
Since this study used survey data, implicit social desirability and the nature of behavioral
research could cause common method bias (CMB). By implementing various preventative
actions, the CMB's potential has been decreased.
First, a pilot was run. Second, all prospective participants were given anonymity and
confidentiality to react unbiasedly. Third, a post hoc Harman's Single Factor Test was
performed where all the variables were loaded onto a single factor (Hair et al., 2010). The first
component explains 23.90 % of variations within the threshold limit of 50% (Podsakoff and
Todor (1985).
Sampling Size
The study uses Yamane’s formula for calculation of sample size, where
: n = N/(1+N(e)2.
For the Agri traders, designated market clusters were first identified in the given districts,
followed by a list from the respective market associations. As per the lists, the total number of
agri-processing units was around 280 in the three districts while that of trading businesses was
around 1500 making the total to 1695 firms. Proportionate sampling was used for the study,
and the total sample size was found to be 460, according to formula by Yamane (1973) i.e.
with 156 processing and 314 trading firms. As a result, 180 processing firms and 320 trading
firms were contacted making the total size to 500. It was found that around 58 processing and
150 trading firms had either permanently closed, or changed addresses, making the effective
size to 122 processing and 150 trading firms. Thus, a total of 272 questionnaires were received
back, indicating a response rate of 54.4%. This is similar to other studies such as Eid & Gohary
(2013). Out of these, 52 firms were filtered for no digital usage, while 220 firms were used for
The collected data were coded, processed, classified and fitted into tables to make the findings
meaningful. Various tools were used to analyse data collected, such as descriptive analysis,
exploratory factor analysis, correlation, regression analysis, ANOVA, independent t-test, scree
test, confirmatory factor analysis and structural equation modelling. NVIVO Plus is also used
for the analysis of interview data.
In the context of the present study, secondary and primary data has been used, first to reveal
the ground level challenges and opportunities faced by the agri-businesses in the general
environment and then to study the paradigms of marketing in a techno-specific domain. The
latter involved using semi-structured interviews to gain in-depth insights into the perceptions
of the owner-managers and government officials of the district industrial center. Questions
pertaining to the probable inhibitors as well as potential drivers were asked. Subsequently,
themes were accreted to the data to offer meaningful details to the subject matter (Wilson et
al., 2016). Further insights were also generated for the construction / validation of survey
research instrument.
Since the benefits associated with technology can be reaped effectively with favorable macro-
economic factors- such as infrastructure support, internal or external considerations, any
enquiry mandates the inclusion of the same. Thus, the data so collected through the semi-
structured interviews was first imported and then organized using NVIVO software to generate
sensible categorizations (Allsop, D. B., Chelladurai, J. M., Kimball, E. R., Marks & Hendricks
(2022). According to Bryman & Bell (2015) interviews are a medium for eliciting all manner
of information from the respondents regarding behaviors, attitudes, beliefs and norms. It can
also unveil the emotions, approach, thoughts and perceptions of agribusiness owners regarding
the challenges and drivers in their area of operation. For analyzing the data generated through
interviews, NVIVO 12 Plus software has been used due to its innate relevance and multiple
functionalities for handling unstructured or semi-structured non-numerical data. It involves a
cyclical process wherein the data is first imported, and then keywords are identified and coded.
This is followed by a culmination of similar codes into broader categories called themes that
can be displayed in the form of visualizations. The code summary reports and final themes are
elaborated in the next slide.
Based on the codes and themes generated for the present research, the major challenges and
opportunities have been coded as Operational (including awareness, workforce availability);
Infrastructural (including power, technology, warehousing and logistics); Quality-related; and
Politico-legal (policy and regulation).For the opportunities, the codes were identified related to
Physical and Natural environment; Network support (business relationships); Dynamic market
conditions (brand bundling, supermarket revolution, e-selling) and Financial inclusions. For
the ease of understanding, the codes were categorized into themes depicting the internal and
external environment factors. While the Internal factors pertained to the intrinsic elements of
agribusinesses (such as owner-manager awareness, availability of workforce etc.), The external
factors focused on the extrinsic factors and was subdivided into task (micro) and general
(macro -economic) factors. Two of the major internal challenges have been the lack of
awareness among the owner-managers regarding the prevailing schemes, industry norms and
technological innovations. Along with this, shortage of workforce and skilled labors. . For its
unskilled labor, the firms rely on migrant labourers and for the skilled jobs, most enterprises
struggle to find basic techno-savvy employees who can supplement owner-managers in
subsidiary operations such as filing e-way bills, handling payment mechanisms and tax
formalities as is mandated. The recurring disturbances such as bandhs, curfews and, lockdowns
have consistently added to the challenges of maintaining long-term worker relations.
Within the task environment challenges, the most persistent supplier-related challenges are that
of credit sales and raw material procurement. This problem is further aggravated by the
geographical location of the area, which makes logistics costly, and limited. For competitive
factors, the major elements relate to pricing, branding, distribution, and easy entry of new
players. Many firms, for example, have been deeply aggrieved by the price wars started by e-
commerce majors such as amazon. Similarly, flooding of the local markets with foreign
products has downplayed the offerings of the resource- crunched smaller businesses. For
Government assistance factors, the support of the government through its officials was found
to be adequate however, not many programs were undertaken to train the existing skill force.
Moreover, the process of availing the benefits requires many formalities, which when
unfulfilled, lead to lapse of such benefits. In terms of macro environment challenges, those
pertaining to the economic environment, and politico legal environment were most prominent.
The economic challenges included those related to warehousing and storage technologies,
power, roads, railways and telecommunication networks. According to the respondents, while
there a number of traditional cold storages available within the vicinity, logistics challenges
are a major setback. As the northern tip of the country with no nearby inland port, the union
territory requires goods to travel greater distances and longer logistic support chains. The
politic-legal challenges pertained to political instability, security and legality issues. There have
also been incidences of strikes, bandhs and closures over the time. While strikes may not fall
in the ambit of a major challenge, it still leads to loss of productive days for many. This can
further give rise to a spiral of problems, specifically for perishable goods such as delayed
transportation of goods, delivery execution, logistic problems and laying off of workers.
The second objective is to explore the level of awareness among the respondents regarding the
government assistance schemes and programs. The governance schemes and support
mechanisms for agribusinesses has been categorized into two heads-
-Schemes for Processing firms (includes Quality assurance, Codex, Standards and R&D,
Scheme for bar coding and Backward and Forward integration)
-E-Programs for both Processing and Trading Firms (includes e-NAM, AGMARKNET,
Udhyam Portals and APEDA portal). Descriptive statistics were used for drawing inferences
regarding awareness. It was found that the level of awareness of schemes for processing firms,
backward and forward integration was the least known.
For studying the level of awareness of government assistance mechanisms for agribusinesses,
4 key portals were included which were generally available to all stakeholders (including
farmers, processors and traders), namely E-NAM, AGMARKNET, Udhyam Registration
Portal and APEDA portal on a scale of 1 to 5 where 1=Not at all aware, and 5= extremely
aware). Findings show that among the respondents in the study area, the level of awareness of
E-NAM (2.33) was the highest, followed by Udhyam Registration Portal (1.93). However,
overall, the level of awareness of the available e-portals for agribusinesses was low. On the
basis of nature of activity, processing firms were more aware about E-NAM (2.39) and
Udhyam Registration Portal (2.12) than trading businesses.
On the basis of t-test, it was found that there were significant differences (t219=2.413, p=0.017)
in the scores wherein the mean level of awareness of government schemes among
manufacturing businesses (M=2.09, S.D= .810) was higher than trading businesses (M=1.84,
S.D=0.734). The magnitude of differences in mean (mean difference= 0.251, 95% CI: .0459 to
.0456) was significant. Thus, the results support the hypothesis that the level of awareness of
government assistance schemes varies significantly in the study area. Moreover, there was
significant difference (F2,218 =4.469,p=0.013) in the level of awareness on the basis of location
of businesses, with the mean awareness level of Samba (M=2.31, s.d=1.03) being more than
other location of Jammu and Kathua. A possible explanation for this could be the presence of
well-functioning industrial estates that include mostly small and medium sized businesses.
Objective 3: To find the extent of usage of digital marketing tools for agribusinesses in
study area
H1a: There is no significant difference in the extent of tools used for digital marketing in the
organizations under study.
The extent of usage of digital tools which shows that respondents utilized the mobile based
tools such as internet banking as well as whatsApp the most for communication, along with
search engines. Lesser use of informational blogs and webinars, along with online ordering
facilities. On the basis of factor analysis, the extent of usage was further divided into 3 factors
namely Business Process efficiency (BPE), Integrated communication Tool (ICT), Sales
Prospecting tool (SP).
A Welch’ t-test was conducted to compare the differences in the mean usage of tools on the
basis of the nature of businesses ie Processing and Trading.
There were significant differences (t(219)= 9.670, p< 0.001) in the scores of integrated
communication tools wherein the mean score for manufacturing businesses (M=2.43,
SD=.909) was higher than trading businesses (M=1.98, SD=0.661). The magnitude of the
differences in the mean (mean difference=0.548, 95% CI:0.291 to 0.805) was significant.
Thus, from the Table 5.6.3, it is observed that significant differences exist between the mean
use of ICT tools among the manufacturing and trading agribusinesses only. While the mean
use for Business Process Efficiency tools and sales prospecting tool, was not found to differ
significantly across the organizations.
On the basis of scope of operations, it was found using an ANOVA with Welch’s test that mean
differences were statistically significant for all the tools, namely BPE ( F=2,218 =6.442, p<0.05)
Sales Prospecting (F2,218= 3.516, p<0.05) and ICT digital tools (F 2,218=36.193, p<0.001). This
suggested that significant differences existed between the use of digital tools among local,
national and international businesses. A post hoc-analysis revealed that differences was
significant for ICT tools among the organizations, whereas no significant difference existed in
the use of Government/ BPE tools among national and international businesses.
On the basis of Turnover, the results indicated that the mean differences exist significantly for
two out of three factors viz ICT tool (f2,218 = 18.150, p<0.05) and BPE tool (f2,218 = 5.169,
p<0.05). Another factor, namely SP tool (f 2,281= 1.790, p>0.05) was not found to be significant.
Thus, the analysis partially supports the hypothesis that no significant difference exist in the
extent of tools used for digital marketing in the organizations under study
Objective 4: To evaluate the ease of use and perceived benefits of digital marketing tools
for B2B agribusinesses.
H1b: There is no significant difference in the perceived ease of use of digital marketing tools
in the study area.
In this case, as sample sizes were different, the use of an independent T-test is advised, and
later reconfirmation through Welch test was done. To assess which significance value will be
used, Levene's Test of equality of Variance is observed. As the value in the above table is >
0.05, ie..912, it is assumed that equal variances were assumed and hence sign. value of 0.00
(less than 0.05) is considered significant*. This accepts the alternate hypothesis that significant
differences exist in the perceived ease of use of digital marketing tools between manufacturing
and trading agribusinesses. There were significant differences (t 219= 2.936, p<0.05) in the
scores wherein the mean score for manufacturing businesses (M= 3.37, SD= .701) was higher
than trading businesses (M=3.09, SD=0.690). The magnitude of the differences in the mean
(mean difference=- 0.277 at 95% (CI:0.091 to 0.463) was significant.
H1c: There is no significant difference in the perceived benefits of digital marketing tools in
the study area.
Thus, this partially rejects the hypothesis that no significant difference in the perceived benefits
of digital marketing tools in the study area.
On the basis of factor analysis, the key barriers were categorized into Strategic Relevance
Barriers (F1), Resource and Infrastructure barriers (F2) and Stakeholder readiness barriers (F3).
Among this, the strategic relevance barriers had the highest factor mean followed by
stakeholder readiness barriers. These strategic relevance barriers included the businesses’
perception towards using digital marketing tools for their functioning. Even though firms had
some kind of digital usage, there was a common negative perception towards further
institutionalization of technology. This can be due to the absence of a strategic mindset among
the owner-managers about the ambidextrous potential of digital marketing tools. On the basis
of nature of activity of firms, infrastructure barriers were more obstructive for trading firms
than processing firms. An independent sample t-test was conducted to compare the barriers to
digital marketing usage among Trading and Processing related agribusinesses. There were
significant differences (t(219)=9.192, p< 0.001) in the scores of resource barriers wherein the
mean score for manufacturing businesses (M=2.73, SD=0.802) was higher than trading
businesses (M=2.31, SD=0.596).
H3: The marketing performance is positively affected by the Digital Marketing tools.
The Pearson’s coefficient of correlation for digital marketing usage for integrated
communication, management governance and sales prospecting tool and marketing
performance (MP) is 0.384; 0.266; and 0.274 respectively (Table 2). This shows that there is
a positive relationship between the usage and the marketing performance.
Correlations
The analysis of variance between the variables, i.e. (ICT tool, M.Gov tool and SP tool), with
marketing performance shown in Table 4 gives a significant p-value, thereby pointing to the
fact that there exists a linear relationship. Furthermore, R-value of 0.430 indicates that there
exists a moderate relationship between the usage of different digital marketing tools and
marketing performance. Additionally, it also shows that the relationship is positive. Thus, with
the increase in use of digital marketing tools, the marketing performance also increases.
The square of correlation coefficient (r2) called the coefficient of determination is a convienient
way of interpreting the value of r. r2 gives the percentage variation in the dependant variable
as explained by the independent variable. In the table, r2 is .185, which shows that 18.5% of
the variation in performance has been explained by the factors of digital marketing usage
(Table 3).
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
Table 4: ANOVA
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 13.539 3 4.513 16.367 .000b
Residual 59.833 217 0.276
Total 73.372 220
The square of correlation coefficient (r2) called the coefficient of determination, is a convenient
way of interpreting the value of r. r2 gives the percentage variation in the dependent variable
as explained by the independent variable. In the table, r2 is 0.185, which shows that 18.5% of
the variation in performance has been explained by the factors of digital marketing usage
(Table 3).
Table 5: Coefficients
The regression coefficient in table above show that 1 unit increase in ICT tool, Mgov and SP
usage would bring 0.178, 0.186 and 0.213 changes in performance respectively. The‘t-values’
in the table are also greater than the table value of 1.96 at 5% level of significance. Thus, all
three factors bring significant change in the overall performance of businesses.
The above regression model confirms the hypothesis that marketing performance is positively
affected by the usage of digital marketing tools.
This study has examined the usage and impact of digital marketing tools among b2b
agribusinesses in the erstwhile state of Jammu. The marketing performance for this research
per se has been measured subjectively in terms of positive business image, channel partner
relationship, sales, and cost reduction. Based on the results that emerged from the study and
discussion with key stakeholders, the researcher has been able to conclude the following
suggestions: The extent of technology use depends on several factors such as attitude towards
technology (perceived benefits, barriers and ease of use), state of infrastructure systems, age,
types of ICT used, and nature of organizations. There are common barriers to the use of
technology such as strategic relevance barriers, infrastructure and resource barriers, and
stakeholder readiness barriers. From findings it is clear that agribusinesses approaching
digitization have to be aware that they are part of a heterogeneous universe of extremely diverse
economic agents, whose characteristics vary depending on the business sector they operate in,
the markets they serve, the products they produce and how involved and connected they are to
the macroeconomic context and support institutions. Based on the results that emerged from
the study and discussion with key stakeholders, the researcher has been able to conclude the
following suggestions at the generic and specific level.
Generic strategies
Generic strategies are focused on the general business environment, while specific strategies
consider the confluence of the respective functions from the perspective of digitization. Generic
strategies include formation of e-clusters, teaching through demonstrations and workshops,
developing digital quotient or digital intelligence quotient, human resource development,
strengthening digital infrastructure, developing social networks and open source materials and
identifying champions for better strategy implementation. The concept of e-clusters was first
introduced by Lockett & Brown (2000) and are defined as new business models enabled by the
internet where one or more intermediaries do much of computing for a group of related firms.
These intermediaries not only save the small firms within the e-clusters from the numerous IT
management tasks, including determining needs, selecting, implementing and running
hardware/ software, but also make it convenient for them to focus on their core competencies
with better IT management. This will also help in strengthening connections between research
and extension by increasing cross-sectoral sharing of experiences between the public, private,
and civil society sectors (Gulati et al., 2018).In the current situation, it is anticipated that digital
marketing tools can also complement the traditional extension system for delivering knowledge
resources to key stakeholders. In order to accelerate the adoption of e-marketing, its user-
friendliness and advantages should be demonstrated to users via different platforms such as
video presentations and workshops. This will help users become more familiar with the
available technology. Second, the technology should be made available to potential users, and
they should be encouraged and motivated to use it to ensure efficiency in processing
transactions. Agribusinesses are operating in an era which is often termed as the 4th industrial
revolution this is due to the growth of web 2 and web 3, the increasing accessibility to digital
resources and the government impetus through several schemes that mandate the use of digital
technologies. These digital marketing activities require a certain degree of psychological
intelligence called the digital quotient, which needs to be developed in the Indian
agribusinesses that are currently backwards and slow adopters of technologies. The ways of
developing this quotient in India will not be exactly similar as in the developed countries due
to noticeable differences in social and cultural factors, education levels, risk propensity, level
of infrastructure etc., however it would be more vocation based. Promotion of hands-on
knowledge of Web 2.0 for innovation. Thus, efforts should be made by the regulatory
authorities as well as associations to equip the owner-manager with hands-on knowledge of
web 2.0 technologies- such as using WhatsApp for payments, or Facebook for insight This
would enable better use of digital tools by reducing the ‘perceived loss of control and assure
the B2B users of the control they have over practical technologies. It is also important to
promote the proper use of social networks and open source information among agricultural
stakeholders. The influencers (who can affect their peer group) should be given special
attention and promotional offers. Lastly, Projects need champions to advance them, make them
visible to other agricultural stakeholders, and keep them on their radar. These individuals must
lead at all levels, from local to central. Content localization is challenging since information
needs to be compiled from various sources while also being organized in granular way for
quick localization. There is currently little widespread use of content localization and
customization. If there is not enough scientific data accessible, content must be created, tested,
and enhanced before being used for more advisory services via ICTs. The majority of web
portals lack pertinent local language material. Implementation of technology in the
agribusiness sector in developing country is the joint responsibility of individual players as
well as the assistant bodies. The creation of specialised websites and portals for agriculture
requires a coordinated effort from various parties. This mission is too big to be completed by
a single institution or group. The endeavour should be accomplished with the help of major
agricultural stakeholders, including the food and fertilizer companies. As was already
indicated, the government might take the initiative to establish a coordinating organisation
where different stakeholders collaborate to spread computer culture to rural areas while also
benefiting from the effective operations carried out in a computing environment.
Specific Strategies
Focusing on the IT- strategy fit: Contemporary marketing requires both hard and soft
technology factors. While the former includes hardware’s, the latter goes beyond the tangible
or physical aspects. 'Soft' technologies are defined as 'systems of thought, practice and action
that facilitate the achievement of explicit aims (Bessant & Francis, 2005). It may also represent
the intangible elements of technology, namely, skills and expertise and strategic planning (Jin,
2011). In the present study, it can be defined as an integrated digital strategy comprising of
objectives, quality, monitoring and measurement. These are almost as important as hardware’s
and structural dimensions (Osakwe & Anaza, 2017). Henceforth a robust web identity is a
function of both structural and strategic considerations. In the given sample, even though firms
believed that more buyers access web resources through smartphones, not many embedded
google maps in their contact information. Goal setting of businesses is short-sighted as
monitoring leads, clicks or keywords is not carried regularly. The awareness of sophisticated
digital metrics such as conversion, webs visitor’s demographic, click-through rate, purchases
made and channels through which the website is reached is limited. Hence, effectiveness is
defined in subjective terms only
Planning Digital touchpoints: A frictionless market implies that customers have almost
perfect information about the sellers, varieties available and possible options. However, for
business customers are often guided by different motivations (time management, transaction
cost or price advantages), it is important to customise touchpoints. Businesses can use
WhatsApp and web 2.0 mediums to communicate brand values through a meticulous choice of
color schemes, videos and catalogues. Digital marketing channels like search engine
optimization (SEO) and sponsored search advertising have already shown long-term business
performance results. However, even simpler initiatives like maintaining and managing google
business listing or just dial listing with updated contact details, reviews, and GPS location can
be effective for smaller businesses. As the B2B customer touchpoints have also evolved from
referrals to search engines, WhatsApp group networks and B2B marketplaces such as
Indiatrade, efforts should be taken to provide holistic information about static elements of the
business through proper profiles. And can lead to customized communications that resonate
with the target audience.
Integrating Communication Tools: The most often used tools for increasing brand awareness
and fostering authenticity are social media marketing, pay-per-click advertising, search engine
optimization, website marketing, content marketing, and mobile marketing.. It aids in
developing brand strategy, expanding the market into new nations, reducing costs through
optimization (such as with online marketing campaigns), or improving search engine results.
They also efficiently support the sales of agricultural products, wholesale items, export/import
operations, and product eCommerce, regardless of the industry. Utilizing social media to its
maximum potential is the best way to build relationships with a global audience for the
marketing of agricultural products. An average user spends roughly three hours every day
logging onto social media sites. A responsive virtual presence portrays an image of an up-to-
date organization—moreover, better customer targeting abilities aid brand awareness. This
improves the organization’s profitability and enhances brand equity and customer loyalty.
Overcoming the ‘build it and they will come approach’: In the sample, 53.2% of the firms had
no website, and 46.81% of the firm had a website. Out of the firms having a website, 22.7%
owned websites, and 24.1% had a business website with no unique domain name or web server.
Thus, as good websites can serve as an online storefront, 24/7/365, it is important that the
website be reviewed timely and maintenance functions be outsourced to digital marketing
agencies that are diligent and proactive. Additionally, the firm owners should conduct usability
tests and keep track of the analytics by working in close contact with the agencies. Due to the
absence of a designated department for handling digital marketing activities, there is prevalence
of only a ‘static presence’ on the web with no incentive for dynamic interaction handling.
Innovative marketing Tactics: In the future, storytelling through video marketing will be the
most enticing strategy. More frequently, people prefer video content. Thus, to effectively
deliver agricultural extension services, traditional extension communication methods (human
contact methods, print media, radio, and TV) and modern ICTs must be employed
appropriately to reach agri- stakeholder audiences. Further incorporating ICTs and Information
and Communication Management (ICM) into agricultural extension, agricultural stakeholders
will be able to share knowledge more quickly.
From the sectoral limelight, agribusinesses have been characterized by a lack of digital and
infrastructure access and social media engagement. Subsequently, a passive approach to growth
opportunities is evident (Bowen & Morris, 2019). To raise organizational ambidexterity and
exploratory capacities of small businesses in the agribusiness sector India ranks second in
global agricultural production, next only to China. Yet, it ranks 94th out of 107 countries in
global Hunger Index (2020). Despite its geographical advantages, highest cropping intensity,
variety, its classification into the ‘serious hunger’ category much behind Bangladesh, Pakistan
and Nepal is a cause of concern. Inefficiencies of the food marketing system, particularly
concerning market and distribution mechanisms is considered as the major reason for this.
Within the country, the predominance of states like Uttar Pradesh, Andhara Pradesh and
Maharashtra in agricultural production, over grain-centric states like Punjab and Haryana has
been proof that production is no longer independent of marketing. The findings also support
Ramdani et al., (2021) findings that SME’s are lagging behind operating in developing
countries are lagging behind those operating in developed countries (Cataldo et al., 2020). The
conjunction of product, information and relationships are the key necessities for sustained
advantage. Therefore, as the commercialisation of agriculture intensifies, an optimum balance
between the production and marketing spheres needs to be maintained and technology can
serve as a crucial tool for this.
The study is limited in its generalization as it was conducted in a single union territory of India.
Secondly, the research focused on agri-based businesses comprising of only processing and
trading businesses. Therefore, the results may not be generalized for all agribusinesses. Future
studies can extend the work with greater sample size and qualitative case studies. Studies can
also include investigations into the effect of other system and environmental related elements
such as e- Readiness, perceived usability along with multigroup analysis on the basis of
experience, external support and size. Lastly, relationship system based attributes and actual
use can also be implored in the forthcoming scholarships. (Lacka & Chong, 2016; Tzempelikos
et al. 2019). A longitudinal study may provide further insights on causation and
interrelationships because perceptions might alter over time as a result of experience. The
impact of mediating factors (firm size, firm type, and company reputation) is not examined in
this study; however, it will be in a subsequent study.
CHAPTER SCHEME
The main body of this research study has been divided into six chapters along with tables and
annexure to support the analysis and findings of the study. A brief overview of the contents of
Chapter 1: Introduction
marketing and also its relevance in the business-to-business domain. It incorporates the
complex dynamics of Agri-value chain and focuses on the need, significance and impact of
This chapter portrays the past research work done in the field of IT adoption and business to
business marketing with reference to global and Indian agribusiness and finally identifies the
This chapter depicts relationship matrix between information technology and marketing
relevance of digital institutionalization in this sector to the Indian economy and also further
This chapter deals with the discussion regarding nature and scope of the study, formation of
research hypotheses and objectives, generation of scale items, selection of respondents, data
collection, data purification, reliability and validity, brief description of organizational profile
This chapter depicts the results of the data collected and analyses in the light of the theoretical
framework. For analyzing the data and testing the hypothesis, various statistical tools have been
used. On the basis of results, strategies have been suggested for its more effective use.
Conclusion and suggestions have been drawn on the basis of findings of the research study
carried among the agribusiness firms in the study area. The chapter summarizes the
recommendations and suggestions generated by the present research work. The chapter focuses
on the current status of digital tools use by agribusiness in Jammu, the major findings of the
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Santoso, H. B., & Delima, R. (2017, March). Stakeholder Definition for Indonesian
Integrated Agriculture Information System (IAIS). In IOP Conference Series:
Materials Science and Engineering (Vol. 185, No. 1, p. 012014). IOP Publishing.
Tzempelikos, N., Kooli, K., & Lichtenthal, J. D., 2019. Innovation in Business-to-
Business Marketing.
Vieira, V. A., de Almeida, M. I. S., Agnihotri, R., & Arunachalam, S. (2019). In pursuit
of an effective B2B digital marketing strategy in an emerging market. Journal of the
Academy of Marketing Science, 47(6), 1085-1108.
Published paper titled ‘Does Social Media use Impact Small Agribusiness Exploitation
and Exploration Capability? Perspectives and Recommendations from the UT of J&K’
in the Indian Journal of Marketing. Indexed in Scopus, Included in UGC's - CARE List
of Journals (Group II), Included in ABDC Journal List (Rating : C).
Published paper titled ‘Covid-19 Pandemic: Concerns, Impact and Continuity strategies
for Small Businesses in India"’ in the Indian Journal of Economics and Development ,
NAAS Score (5.15), Indexed Web of Science (ESCI) and Scopus.
Published paper titled ‘Digital Adoption by Agri-Based Enterprises in District Jammu
: Benefits and Barriers’ in AMC Indian Journal of Entrepreneurship, accessible at
http://www.indianjournalofentrepreneurship.com/index.php/IJOE/issue/current.
Chapters