Understanding Psychosocial Mechanisms of Farmers’ Propensity to Innovate in a Context of Cluster-Based Agribusiness Development

Abstract

This article investigated the influence of clusters on farmers' propensity to innovate. We conducted semi-structured interviews and three focus groups with 208 cashew producers. The data collected was analyzed using the LISREL structural equation modeling approach. The activities carried out and in connection with the cluster approach have a positive influence on the cognitive capital and the social sense of belonging of the producers. The knowledge gained by the producers has improved their sense of competence. Opportunistic thinking, perception of competence and social belonging have a positive influence on producers’ propensity to innovate. The cluster strengthens producers' propensity to innovate through cognitive capital and a sense of social belonging. It is worth noticing that the effectiveness of the cluster approach depends on the organizational challenges in the value chains.