IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-05934-1.html

The impact of digital capabilities on farmers’ choice of marketing channels: evidence from rural areas of the Yellow River Basin in China

Author

Listed:
  • Yu Zhang

    (Northwest A&F University)

  • Zhenzhen Lin

    (Northwest A&F University)

  • Renhui Zhang

    (Northwest A&F University)

  • Kai Zhao

    (Northwest A&F University)

Abstract

Understanding the impact of digital capabilities on farmers’ choice of marketing channels is crucial for achieving sustainable development goals. Therefore, this paper employs the Probit model to estimate the impact of digital capabilities on farmers’ choice of marketing channels. The empirical results indicate that digital capabilities inhibit farmers from choosing wholesalers’ marketing channels, promoting their choice of cooperatives and direct sales. Considering potential endogeneity issues, the results are robust. Mechanism analysis shows that digital capabilities influence farmers’ choice of marketing channels by expanding social networks, changing risk attitudes, and improving bargaining power. We also find that the impact of digital capabilities on the choice of marketing channels shows heterogeneity in education, income, planting scale, and market distance. Therefore, the government should strengthen the agricultural information infrastructure construction and promote cross-departmental collaboration to develop precision agriculture data platforms, effectively enhancing farmers’ digital capabilities. Furthermore, the government should focus on investing in rural logistics infrastructure to diversify agricultural product marketing channels. Finally, the government should conduct precise segmentation of the farmers and develop differentiated policies for cultivating digital capabilities.

Suggested Citation

  • Yu Zhang & Zhenzhen Lin & Renhui Zhang & Kai Zhao, 2025. "The impact of digital capabilities on farmers’ choice of marketing channels: evidence from rural areas of the Yellow River Basin in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05934-1
    DOI: 10.1057/s41599-025-05934-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-05934-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-025-05934-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Fang, Xubing & Liu, Maotao, 2024. "How does the digital transformation drive digital technology innovation of enterprises? Evidence from enterprise's digital patents," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    2. Mgale, Yohana James & Yunxian, Yan, 2020. "Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    3. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    4. Ma, Wanglin & Rahut, Dil Bahadur & Sonobe, Tetsushi & Gong, Binlei, 2024. "Linking farmers to markets: Barriers, solutions, and policy options," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1102-1112.
    5. Yao, Becatien H. & Shanoyan, Aleksan & Schwab, Benjamin & Amanor-Boadu, Vincent, 2022. "Mobile money, transaction costs, and market participation: evidence from Côte d’Ivoire and Tanzania," Food Policy, Elsevier, vol. 112(C).
    6. Sergi, Bruno S. & Ključnikov, Aleksandr & Popkova, Elena G. & Bogoviz, Aleksei V. & Lobova, Svetlana V., 2022. "Creative abilities and digital competencies to transitioning to Business 4.0," Journal of Business Research, Elsevier, vol. 153(C), pages 401-411.
    7. Yohana James Mgale & Yan Yunxian, 2020. "Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1239-1259, October.
    8. Hu, Debao & Zhai, Chenzhe & Wang, Xiaoyan & Huang, Xiaobao, 2024. "Does household risk attitude affect consumption expenditure? Evidence from Chinese urban households," Economic Modelling, Elsevier, vol. 141(C).
    9. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    10. Thai Thuy Pham & Ludwig Theuvsen & Verena Otter, 2019. "Determinants of Smallholder Farmers' Marketing Channel Choice: Evidence from the Vietnamese Rice Sector," Asian Economic Journal, East Asian Economic Association, vol. 33(3), pages 281-300, September.
    11. Fleur Wouterse & Ousmane Badiane, 2019. "The role of health, experience, and educational attainment in agricultural production: Evidence from smallholders in Burkina Faso," Agricultural Economics, International Association of Agricultural Economists, vol. 50(4), pages 421-434, July.
    12. Michael J. Barclay & Terrence Hendershott & Kenneth Kotz, 2006. "Automation versus Intermediation: Evidence from Treasuries Going Off the Run," Journal of Finance, American Finance Association, vol. 61(5), pages 2395-2414, October.
    13. Khan, Nawab & Ray, Ram L. & Zhang, Shemei & Osabuohien, Evans & Ihtisham, Muhammad, 2022. "Influence of mobile phone and internet technology on income of rural farmers: Evidence from Khyber Pakhtunkhwa Province, Pakistan," Technology in Society, Elsevier, vol. 68(C).
    14. Min Liu & Pengfei Shi & Jinxia Wang & Huimin Wang & Jikun Huang, 2023. "Do farmers get a greater return from selling their agricultural products through e‐commerce?," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1481-1508, August.
    15. Xiuhua Wang & Yang Fu, 2021. "Digital financial inclusion and vulnerability to poverty: evidence from Chinese rural households," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 14(1), pages 64-83, November.
    16. Nathan Nunn & Leonard Wantchekon, 2011. "The Slave Trade and the Origins of Mistrust in Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3221-3252, December.
    17. Romero-Castro, N. & López-Cabarcos, M.A. & Piñeiro-Chousa, J., 2023. "Finance, technology, and values: A configurational approach to the analysis of rural entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    18. Liping Liu & Lichuan Cui & Qian Han & Chunyu Zhang, 2024. "The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    19. Smith, Claudia G. & Smith, J. Brock, 2021. "Founders' uses of digital networks for resource acquisition: Extending network theory online," Journal of Business Research, Elsevier, vol. 125(C), pages 466-482.
    20. Anette Ruml & Catherine Ragasa & Matin Qaim, 2022. "Contract farming, contract design and smallholder livelihoods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 24-43, January.
    21. Li, Fanghua & Zang, Dungang & Chandio, Abbas Ali & Yang, Dongmei & Jiang, Yuansheng, 2023. "Farmers' adoption of digital technology and agricultural entrepreneurial willingness: Evidence from China," Technology in Society, Elsevier, vol. 73(C).
    22. Muto, Megumi & Yamano, Takashi, 2009. "The Impact of Mobile Phone Coverage Expansion on Market Participation: Panel Data Evidence from Uganda," World Development, Elsevier, vol. 37(12), pages 1887-1896, December.
    23. Chen, Chen & Gan, Christopher & Li, Junpeng & Lu, Yao & Rahut, Dil, 2023. "Linking farmers to markets: Does cooperative membership facilitate e-commerce adoption and income growth in rural China?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1155-1170.
    24. Wanglin Ma & Huanguang Qiu & Dil Bahadur Rahut, 2023. "Rural development in the digital age: Does information and communication technology adoption contribute to credit access and income growth in rural China?," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1421-1444, August.
    25. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    26. Kebede, Hundanol A., 2024. "Gains from market integration: Welfare effects of new rural roads in Ethiopia," Journal of Development Economics, Elsevier, vol. 168(C).
    27. Gao, Yang & Niu, Ziheng & Yang, Haoran & Yu, Lili, 2019. "Impact of green control techniques on family farms' welfare," Ecological Economics, Elsevier, vol. 161(C), pages 91-99.
    28. Bahati, Ibrahim & Martiniello, Giuliano & Abebe, Gumataw Kifle, 2022. "The implications of sugarcane contract farming on land rights, labor, and food security in the Bunyoro sub-region, Uganda," Land Use Policy, Elsevier, vol. 122(C).
    29. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
    30. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.
    31. Mutonyi, Sarah, 2019. "The effect of collective action on smallholder income and asset holdings in Kenya," World Development Perspectives, Elsevier, vol. 14(C), pages 1-1.
    32. Bjorn Van Campenhout & David J. Spielman & Els Lecoutere, 2021. "Information and Communication Technologies to Provide Agricultural Advice to Smallholder Farmers: Experimental Evidence from Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 317-337, January.
    33. Julia Ihli, Hanna & Chiputwa, Brian & Winter, Etti & Gassner, Anja, 2022. "Risk and time preferences for participating in forest landscape restoration: The case of coffee farmers in Uganda," World Development, Elsevier, vol. 150(C).
    34. Pierre Courtois & Julie Subervie, 2015. "Farmer Bargaining Power and Market Information Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 953-977.
    35. Surendran Arumugam & Ramu Govindasamy & James E. Simon & Emil Wyk & Burhan Ozkan, 2022. "Market outlet choices for African Indigenous Vegetables (AIVs): a socio-economic analysis of farmers in Zambia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-13, December.
    36. Zhang, Hepei & Ma, Wanglin & Li, Junpeng & Yang, Wei, 2023. "Can citrus farmers earn more from selling online?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1549-1560.
    37. Lin, Fei & Li, Jisheng & Wu, Chen, 2025. "Social networks, environmental literacy, and farmers' clean low-carbon farming behaviors: Evidence from villages in China," Ecological Economics, Elsevier, vol. 228(C).
    38. Villacis, Alexis H. & Kopp, Thomas & Mishra, Ashok K., 2024. "Agricultural marketing channels and market prices: Evidence from high-value crop producers in India," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1308-1321.
    39. Dubale Abate & Fikadu Mitiku & Rijalu Negash, 2022. "Commercialization level and determinants of market participation of smallholder wheat farmers in northern Ethiopia," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 14(2), pages 428-439, February.
    40. Valentín-Sívico, Javier & Canfield, Casey & Low, Sarah A. & Gollnick, Christel, 2023. "Evaluating the impact of broadband access and internet use in a small underserved rural community," Telecommunications Policy, Elsevier, vol. 47(4).
    41. Xiong, Wei & Jiang, Mengzhen & Liu, Yingying, 2024. "Digital economy, risk attitudes, and entrepreneurial decision-making in urban and rural households in China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    42. Pankaj Thakur & Piyush Mehta & Amit Guleria & Divyanshu & Pardeep Singh & Prashant Sharma & Rahul Kumar Tiwari & Milan Kumar Lal & Ravinder Kumar, 2025. "Determinants of farmers’ choice for agricultural output marketing channels of tomato (Solanum lycopersicum): an empirical evidence from north-western Himalayan region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10497-10521, May.
    43. Jin, Xin & Ma, Baojie & Zhang, Haifeng, 2023. "Impact of fast internet access on employment: Evidence from a broadband expansion in China," China Economic Review, Elsevier, vol. 81(C).
    44. Bachmann, Nina & Rose, Robert & Maul, Valeska & Hölzle, Katharina, 2024. "What makes for future entrepreneurs? The role of digital competencies for entrepreneurial intention," Journal of Business Research, Elsevier, vol. 174(C).
    45. Kwok-Kee Wei & Hock-Hai Teo & Hock Chuan Chan & Bernard C. Y. Tan, 2011. "Conceptualizing and Testing a Social Cognitive Model of the Digital Divide," Information Systems Research, INFORMS, vol. 22(1), pages 170-187, March.
    46. Xiuhua Wang & Yang Fu, 2021. "Digital financial inclusion and vulnerability to poverty: evidence from Chinese rural households," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 14(1), pages 64-83, November.
    47. Liu, Yuying & Renwick, Alan & Fu, Xinhong, 2019. "The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 22(2).
    48. Edward B. Barbier, 2023. "Overcoming digital poverty traps in rural Asia," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1403-1420, August.
    49. Negi, Digvijay S. & Birthal, Pratap S. & Roy, Devesh & Khan, Md. Tajuddin, 2018. "Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks," Food Policy, Elsevier, vol. 81(C), pages 106-121.
    50. Jiao, Yong & Wang, Gaofei & Li, Chengyou & Pan, Jia, 2024. "Digital inclusive finance, factor flow and industrial structure upgrading: Evidence from the yellow river basin," Finance Research Letters, Elsevier, vol. 62(PA).
    51. Pham, Dien H., 2023. "Risk attitude and economic welfare: A panel analysis on a multiethnic population in rural Viet Nam," Journal of Asian Economics, Elsevier, vol. 88(C).
    52. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    53. Shiladitya Dey & Piyush Kumar Singh, 2023. "Market participation, market impact and marketing efficiency: an integrated market research on smallholder paddy farmers from Eastern India," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 15(2), pages 311-332, July.
    54. Blekking, Jordan & Gatti, Nicolas & Waldman, Kurt & Evans, Tom & Baylis, Kathy, 2021. "The benefits and limitations of agricultural input cooperatives in Zambia," World Development, Elsevier, vol. 146(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ziyun Wang & Lijia Wang & Haopeng Wu & Xinlu Ma, 2026. "Does digital information use improve technical efficiency? evidence from potato smallholders in China," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 14(1), pages 1-33, December.
    2. Ma, Wanglin & Rahut, Dil Bahadur & Sonobe, Tetsushi & Gong, Binlei, 2024. "Linking farmers to markets: Barriers, solutions, and policy options," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1102-1112.
    3. Sharon, M. Mary & Suseela, K. & Shalendra & Rao, M. Srinivasa & Ramesh, D., 2025. "Determinants of Marketing Channel Choices among Paddy Farmers in Andhra Pradesh, India: Insights into Electronic Negotiable Warehouse Receipts (e-NWRs)," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 43(4), pages 1-6.
    4. Ningze Yang & Yiwei Wang & Hui Jin & Qi Qi & Yongliang Yang, 2025. "Impacts of Internet Information Literacy on Farmers’ Relative Poverty Vulnerability: Evidence from CGSS Survey Data in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 178(3), pages 1169-1200, July.
    5. Daniel Musau Wambua & Samuel N. Ndirangu & Hezron Mogaka & Bernard M. Gichimu, 2025. "Determinants of the produced coffee volumes and choice of marketing channels among smallholder coffee farmers in Embu and Kirinyaga counties, Kenya," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-9, December.
    6. Yingzheng Yan & Liupeng Chen & Ziwei Zhou & Yuanzhu Wei, 2025. "Digital financial inclusion and agricultural modernization development in China—a study based on the perspective of agricultural mechanization services," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    7. Pankaj Thakur & Piyush Mehta & Amit Guleria & Divyanshu & Pardeep Singh & Prashant Sharma & Rahul Kumar Tiwari & Milan Kumar Lal & Ravinder Kumar, 2025. "Determinants of farmers’ choice for agricultural output marketing channels of tomato (Solanum lycopersicum): an empirical evidence from north-western Himalayan region," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10497-10521, May.
    8. Luo, Yaling & Zhou, Lei & Zhang, Weike, 2025. "Can e-commerce bring dividends to rural households? New evidence from the income inequality perspective," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 363-379.
    9. Villacis, Alexis H. & Kopp, Thomas & Mishra, Ashok K., 2024. "Agricultural marketing channels and market prices: Evidence from high-value crop producers in India," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1308-1321.
    10. Mengshuai Zhu & Chen Shen & Yajun Tian & Jianzhai Wu & Yueying Mu, 2022. "Factors Affecting Smallholder Farmers’ Marketing Channel Choice in China with Multivariate Logit Model," Agriculture, MDPI, vol. 12(9), pages 1-11, September.
    11. Li, Bin & Pan, Ya, 2025. "Digital inclusive finance and rural entrepreneurial survival: The moderating role of digital and financial literacy," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1119-1136.
    12. Ni Zhuo & Baozhi Li & Qibiao Zhu & Chen Ji, 2023. "Smartphone‐based agricultural extension services and farm incomes: Evidence from Zhejiang Province in China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1383-1402, August.
    13. Liu, Muziyun & Wang, Jinyu & Li, Hai, 2025. "Can farmers’ digital economy participation promote their conservation tillage behavior under the perspective of agricultural industry chain?," Land Use Policy, Elsevier, vol. 159(C).
    14. Liu, Min & Liu, Tianjun & Ren, Yanjun & Wu, Leslie, 2024. "How Does the Adoption of e‐Commerce Impact the Selling Prices of Agricultural Products? Empirical Evidence From Apple Farmers in China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 29(3), pages 1464-1485.
    15. Melaku, Astewale Bimr & Qaim, Matin & Debela, Bethelhem Legesse, 2024. "Maternal employment in high-value agriculture and child nutrition: Evidence from the Ethiopian cut-flower industry," Food Policy, Elsevier, vol. 128(C).
    16. Mingyong Hong & Jiao Long & Wenjun Zhuo, 2023. "Clan Networks, Spatial Selection, and Farmland Transfer Contracts: Evidence from China," Land, MDPI, vol. 12(8), pages 1-17, July.
    17. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.
    18. Srinivasa, Aditya Korekallu & Praveen, K.V. & Subash, S.P. & Nithyashree, ML & Jha, Girish Kumar, 2021. "Does a Farmer’s Knowledge of Minimum Support Price (MSP) Affect the Farm-Gate Price? Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315205, International Association of Agricultural Economists.
    19. Saparova, Gulkaiyr & Khan, Ghulam Dastgir & Joshi, Niraj Prakash, 2024. "Linking farmers to markets: Assessing small-scale farmers' preferences for an official phytosanitary regime in the Kyrgyz Republic," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 696-708.
    20. Mai Chiem Tuyen & Prapinwadee Sirisupluxana & Isriya Bunyasiri & Pham Xuan Hung, 2022. "Perceptions, Problems and Prospects of Contract Farming: Insights from Rice Production in Vietnam," Sustainability, MDPI, vol. 14(19), pages 1-22, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05934-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/palcomms/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.