WHY IS THE VARIATION OF WEATHER INSURANCE INDEX ADOPTION/ UPTAKE EXHIBITED AS SUCH AMONG SMALL HOLDER FARMERS; Testing the theory of Technology Adoption if it applies. Case of Zambia

Joshua Munkombwe^1*, Jackson Phiri²,

¹Graduate School of Business Studies, University of Zambia, Lusaka, Zambia

²Department of Computer Science, The University of Zambia P. O. Box 32379, Lusaka, Zambia, Email: jackson.phiri@cs.unza.zm

Corresponding author: joshua@musika.org.zm,/mutabi.munkombwe@gmail.com

Graduate school of business, University of Zambia, Lusaka, Zambia.

Abstract.

Understanding the reasons why the smallholders’ farmers do not use financial instruments to protect themselves against losse brought on by Climate change concerns is currently a subject of rising relevance. Climate change has continued to ravage the farmers across the globe especially in the developing countries. Getting to the bottom of the underlying issues contributing to this status is important for future designs of financial innovations like weather insurance index that can help hedge the farmers losses. Therefore, this study considered testing the 5 technology characteristics that Rodgers identified for uptake to take place. These include trialability, complexity, compatibility, relative advantage, and observability covering a period between 2014 to 2020.That study focused at testing the theory of innovation diffusion along these 5 variables as to whether the theory applies. The study employed the concurrent mixed method approach to ensure both quantitative and qualitative aspects of the study were considered looking at the complexity of the of the enquiry. The study employed purposive sampling to pick on the 4 districts of Zambia that included; Choma,Petauke,Chongwe and Mumbwa .The main reason for selecting these district was based on the standard sample size table provided Sekeran 2003 which provided for a sample of 1024 at 0.035 with accuracy level at 95% confidence level farmers.. The farmers were interviewed using structured questionnaires. An IBM statistical analysis in social science (SPSS) was used to analyze quantitative data, and thematic analysis was used to analyze qualitative data..The study indicated 50.82% of the farmers saying WII is not consistent with the p-value of 0.001 which was significant, further 40. % of the farmers indicated the importance of bundling the services to have relative advantages of the product with the p-value of <0.001. 47.87% farmers indicated there were not satisfied with the payout system with the p-value of <0.001 which was significant. The study results established that the extent of innovation diffusion of the weather insurance index with farmers is a combination of factors that need to be implemented if farmers adapt and adopt technologies. The study concluded that paying attention to the innovation characteristics as suggested by the diffusion innovation theory by Rodgers is important and that the theory can extend it views by considering the social and cultural characteristics of the farmers. Farmers do not adopt innovations at the same time which has practical ramifications for the study’s findings. Numerous intricate elements that constantly reinforce one another impede the adoption of innovations and these factors contribute to the low productivity and production of the smallholder farmers despite the abundance of risk factors at their disposal.

Key words: uptake,weather insurance index, financial diffusion,adoption,

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Mr. JOSHUA MUNKOMBWE