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An empirical analysis of rural farmers’ financing intention of inclusive finance in China: The moderating role of digital finance and social enterprise embeddedness

Gulizhaer Aisaiti (School of Business Administration, Xinjiang University of Finance and Economics, Urumqi, China)
Luhao Liu (School of International Trade and Economics, Shandong University of Finance and Economics, Jinan, China)
Jiaping Xie (College of Business, Shanghai University of Finance and Economics, Shanghai, China) (School of Business Administration, Xinjiang University of Finance and Economics, Urumqi, China)
Jun Yang (School of Economics and Management, Zhongyuan University of Technology, Zhengzhou, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 26 June 2019

Issue publication date: 18 September 2019

Abstract

Purpose

The purpose of this paper is to investigate and understand China’s rural farmers’ financing intention of inclusive finance, and it examines related drivers like knowledge of inclusive finance, perceived benefits and perceived risks of ordering finance. Besides, the social enterprise embeddedness and digital finance are integrated into the conceptual model to further investigate their moderating impact.

Design/methodology/approach

The authors designed an inclusive finance intention model to examine the relations between dependent variable knowledge of inclusive finance, intermediary variables perceived benefits and perceived risks of ordering finance and the independent variable financing intention of inclusive finance. The embeddedness of social enterprise and digital finance were identified as modifying factors. Both exploratory and conclusive research strategies were applied. A structured questionnaire was developed to collect empirical data from the rural areas of China.

Findings

It suggests that knowledge of inclusive finance can strengthen both perceived benefits and perceived risk of ordering finance. Interestingly, the embeddness of social enterprise can significantly reduce risk perceptions and improve perceived benefits of ordering finance. Furthermore, perceived benefits of ordering finance can positively enhance rural farmers’ financing intention of inclusive finance, whereas perceived risks can negatively influence the financing intention. Moreover, digital finance as a modifying factor can significantly strengthen the positive correlation between perceived benefits of ordering finance and financing intention of inclusive finance.

Practical implications

The research indicates that a systematic inclusive finance educational project is needed to enhance rural farmers’ understanding of inclusive finance and its components. Moreover, the study reveals that it is crucial to promote social enterprise participation and digital finance to develop inclusive finance in rural China, as the service attributes of social enterprise and efficiency of digital finance can greatly reduce the existing transaction cost of farmers.

Originality/value

The conceptual model would potentially contribute to researchers interested in investigating the financing intention of inclusive financial services relating to rural population. The integration of social enterprise embeddedness and digital finance is the uniqueness of this research conceptual model.

Keywords

Acknowledgements

The work was supported by National Social Science Foundation of China: Grant No. 15ZDB161, “Research on the evolution of industry and enterprises in green whole industry chain”. The authors thank the editor and the anonymous referees for comments and suggestions. The authors contributed equally to this work.

Citation

Aisaiti, G., Liu, L., Xie, J. and Yang, J. (2019), "An empirical analysis of rural farmers’ financing intention of inclusive finance in China: The moderating role of digital finance and social enterprise embeddedness", Industrial Management & Data Systems, Vol. 119 No. 7, pp. 1535-1563. https://doi.org/10.1108/IMDS-08-2018-0374

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited