Determinants of farm household social capital in technology adoption: evidence from teff producers in Ethiopia

Purpose This study investigates the determinants of social capital in relation to teff technology adoption in Ethiopia, focusing on the dimensions of social capital. Design/methodology/approach Principal component analyses were conducted to analyse the dimensions of social capital: structural, relational and cognitive. Then, composite indicators were developed to quantify these dimensions. Three-stage least squares (3SLS) analysis was conducted to address the endogeneity issue, and seemingly unrelated regression analysis was conducted to identify the determinants of social capital among farm households. Findings The findings reveal that training and trust in close friends are positively associated with structural dimensions. Factors like income, total cultivated land, credit service, group position in local association and interpersonal trust were found to have a positive effect on the relational dimension of social capital. Moreover, the cognitive dimension of social capital was positively influenced by extension service, trust in close friends and group positions. Practical implications The study concludes that improving farmers’ social capital is crucial; it can be achieved through training programmes, improving extension services and encouraging trusted farmers and participation in local associations. These determinants of social capital enhance technology adoption. Originality/value This study addresses a significant gap in the literature by examining determinants of farm household social capital in technology adoption. The study results reveal that social capital is multidimensional, and its determinants differ across dimensions. Thus, the government should focus on using the stock of social capital to encourage farmers to adopt technology.