Digital governance and growth of agricultural marketing co-operative societies in Simiyu, Tanzania: An empirical framework

Abstract

Digital governance offers Agricultural Marketing Co-operative Societies (AMCOS) an important opportunity to enhance competitiveness and support socioeconomic development in Tanzania's evolving digital environment. This study examined how digital governance practices, namely e-transaction platforms, Co-operative Management Information Systems, and digital communication platforms, influence AMCOS growth in the Simiyu Region, Tanzania. Growth was assessed through membership growth, asset growth, and new product innovation. Guided by the Dynamic Capabilities Theory, the study adopted a cross-sectional embedded mixed-methods design. Quantitative data were collected from 237 AMCOS managers using structured questionnaires and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), while qualitative data were obtained from six District Co-operative Officers through interviews and analysed thematically. The findings showed that digital governance supported AMCOS growth by strengthening operational efficiency, transparency, and organisational responsiveness, with a particularly strong effect on membership growth and retention. However, its influence on asset growth and new product innovation remained limited, mainly because of traditional business models, limited financial and technical resources, and restrictive regulatory frameworks. The study concludes that digital governance is necessary but not sufficient for AMCOS growth, as its broader benefits depend on supportive institutional arrangements and structural reforms. It recommends that policymakers strengthen enabling policies, prioritise digital capacity-building, and promote collaborative partnerships to support the sustainable growth of AMCOS in Tanzania.