Does joining online groups increase farmers' incomes in the mountainous areas of northern Vietnam? The role of information

Abstract

PurposeThis study analyzes whether farmers' incomes increase as they participate in online groups.Design/methodology/approachThe study analyzed interview data from 673 farming households in three mountainous provinces of northern Vietnam, utilizing the propensity score matching (PSM) method.FindingsThe empirical results reveal that farmers participating in online groups, particularly those engaged in 1–3 groups, experience an increase in their income attributed to the three advantages of sharing-accessing-saving (SAS) information. Farming households engaged in online groups earn higher incomes, ranging from equivalent to 25.78 to 26.96 USD, in comparison to those who do not participate. Notably, farmers participating in 1–3 online groups outpace their counterparts in 4–5 groups in terms of income.Research limitations/implicationsThis study exclusively focuses on examining farmers' total income derived from all their agricultural activities and does not quantify the specific impact of online group participation on the income generated by each product. Furthermore, it is important to note that the PSM method has the potential to introduce bias due to unobserved factors, such as social networks and local culture. Consequently, future research should prioritize the segmentation of income from individual agricultural products, distinct from the overall income, to gain a more nuanced understanding of each product’s sensitivity to information exchanged in online groups. Simultaneously, accounting for unobserved factors is crucial to obtain unbiased estimates.Originality/valueThis study represents the inaugural exploration into the comparison of farmers' incomes within a novel context – participation in digital-based groups. Furthermore, it extends the inquiry by delving into the correlation between the number of online groups joined and farmers' income. The empirical findings indicate that farmers may benefit the most by limiting their participation to a select few groups that align with their information needs and analytical abilities.