DETERMINANT FACTORS OF THE DECISIONS ASSOCIATED TO RISK OF THE COLOMBIAN COFFEE GROWERS
Main Article Content
Abstract
The main idea of this paper is to identify the determinant factors of the decisions associated with the risk of Colombian small-scale coffee growers. Through a survey from a selected sample from Colombian coffee growers, classified by region and size,we identify the risk propensity and confidence in risk management instruments. With the data, we build two taxonomies: the first one, the risk taxonomy; and the second one, the risk management instruments taxonomy. With these results, we build six unobservable constructs through Confirmatory Factor Analysis CFA methodology. The constructs represented: i) the history of successes and failures resulting from decisions made in the past; ii) the influence of the idiosyncratic characteristics of the problem on coffee growers' perceptions of risk; iii) the tendency of coffee growers to take or avoid risks; iv) the alternatives that a decision maker confronts; v) the individual evaluation of the risks before a situation and the confidence in that evaluation; and iv) the effects of the risk management instruments offered to the coffee growers. The results of the six latent constructs were significant, which allows us to conclude that the latent constructs are measurement models defined as indicators that describe the decisions associated with the risk of small-scale coffee grower’strough the identified factors.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Anderson, J. C., and Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411
Antwi-Agyei P, Peasey A, Biran A, Bruce J, Ensink J (2016) Risk Perceptions of Wastewater Use for Urban Agriculture in Accra, Ghana. PLoS ONE. 11(3): e0150603. doi:10.1371/journal.pone.0150603
Bielza, M. (2004). Instrumentos de Gestión de Riesgo del Mercado. Aplicación al sector de la patata. (Tesis Doctoral. Universidad politécnica de Madrid, Escuela técnica superior de ingenieros agrónomos, Departamento de Economía y Ciencias Sociales Agrarias). Madrid, España.
Brown, T. A. (2014). Confirmatory factor analysis for applied research. Guilford Publications.
Carvajal Peláez, G. I. (2008). Modelo de cuantificación de riesgos laborales en la construcción: ries-co.
Castellanos, E. J., Tucker, C., Eakin, H., Morales, H., Barrera, J. F., and Díaz, R. (2012). Assessing the adaptation strategies of farmers facing multiple stressors: Lessons from the Coffee and Global Changes project in Mesoamerica. Environmental Science & Policy. 20:23-32.
Cenicafé-FNC (2013). Informe Anual Cenicafé 2013. Blanecolor S.A.S Colombia.
Cheung, G. W., and Lau, R. S. (2008). Testing Mediation and Suppression Effects of Latent Variables: Bootstrapping With Structural Equation Models. Organizational Research Methods, 11(2), 296-325. https://doi.org/10.1177/1094428107300343
Coble, K., Harwood, Y., Perry, J., and Somwaru, A. (1999). Managing Risk in Farming: Concepts, Research, and Analysis. Economic Research Service, U.S. Department of Agriculture 774: 14-79.
Eakin, H., Tucker, C. M., Castellanos, E., Diaz-Porras, R., Barrera, J. F., and Morales, H. (2014). Adaptation in a multi-stressor environment: perceptions and responses to climatic and economic risks by coffee growers in Mesoamerica.Environment, development and sustainability, 16(1), 123-139.
Echavarría, J. J., Esguerra, P., McAllister, D., & Robayo, C. F. (2014). Informe de la misión de estudios para la competitividad de la caficultura en Colombia. Bogotá DC.
FNC de Colombia. (2013). Sostenibilidad en Acción 2013. Informe del Gerente General de la Federación de Cafeteros 2013.
Frank, E., Eakin, H., and López-Carr, D. (2011). Social identity, perception and motivation in adaptation to climate risk in the coffee sector of Chiapas, Mexico.Global Environmental Change, 21(1), 66-76.
Giovannucci, D., Pinard, F., Potts, J., Schuller, S., Soto, G., and Wunderlich, C. (2008). Seeking sustainability: COSA preliminary analysis of sustainability initiatives in the coffee sector.
Heshusius, K. (2010). Propuesta de Modelo de Sostenibilidad y Competitividad para la FNC de Colombia. FNC de Colombia.
Junguito, R., and Pizano, D. (1993). Instituciones e instrumentos de política cafetera en
Colombia 1927-1997. Bogotá, Colombia: Fedesarrollo y Fondo Cultural Cafetero.
Kahneman, D., and Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
Katchova, A. and Barry, P. (2005). Credit Risk Models and Agricultural, American Journal of Agricultural Economics, 87(1): 194-205.
Korstanje, M. (2011). Reconsiderando el concepto de Riesgo en Luhmann. Revista Mad, (22), 31-41.
MacKinnon, D. P., Lockwood, C. M., & Williams, J. (2004). Confidence limits for the indirect effect: Distribution of the product and resampling methods. Multivariate behavioral research, 39(1), 99-128.
March, J. G., & Shapira, Z. (1987). Managerial perspectives on risk and risk taking. Management science, 33(11), 1404-1418.
Ocampo, J. A. (2015). Misión para la transformación del campo. Bogotá, DC: Departamento Nacional de Planeación, octubre.
Osborn, R. N., & Jackson, D. H. (1988). Leaders, riverboat gamblers, or purposeful unintended consequences in the management of complex, dangerous technologies. Academy of Management Journal, 31(4), 924-947.
Quiroga, S., Suárez, C., and Solís, J. D. (2015). Exploring coffee farmers’ awareness about climate change and water needs: Smallholders’ perceptions of adaptive capacity. Environmental Science & Policy, 45, 53-66.
Ramírez, L., Silva, G., Valenzuela, L., Villegas, A., and Villegas, L. (2002). El Café capital social estratégico: Informe final comisión de ajuste de la Institucionalidad cafetera. Bogotá, Colombia: FNC.
Samper, M., and Topik, S. (2012). Crisis y transformaciones el mundo del café. Dinámicas locales y estrategias nacionales en un período de adversidad e incertidumbre. Bogotá, Colombia. Pontificia Universidad Javeriana.
Sitkin, S. B., and Pablo, A. L. (1992). Reconceptualizing the determinants of risk behavior. Academy of management review, 17(1), 9–38.
Sitkin, S. B., and Weingart, L. R. (1995). Determinants of risky decision-making behavior: A test of the mediating role of risk perceptions and propensity. Academy of management Journal, 38(6), 1573-1592.
Thaler, R. H., and Johnson, E. J. (1990). Gambling with the house money and trying to break even: The effects of prior outcomes on risky choice. Management science, 36(6), 643–660.
Tjemkes, B., Henseler, J., & Furrer, O. (2015). Managers’ Risk Propensity and Destructive Behavior in Buyer–Seller Relationships: An Application of PLS-analysis.
Tucker C., Eakin, H., and Castellanos, E. (2010). Perceptions of risk and adaptation: Coffee producers, market shocks, and extreme weather in Central America and Mexico. Global Environmental Change, 20: 23-32.
Van Winsen, F., de Mey, Y., Lauwers, L., Van Passel, S., Vancauteren, M., and Wauters, E. (2016). Determinants of risk behaviour: effects of perceived risks and risk attitude on farmer’s adoption of risk management strategies. Journal of Risk Research, 19(1), 56-78.