Evaluating the Impact of Technological Adaptation in Third-Party Logistics on Farming Household Sustainability: The Mediating Role of Supply Chain Robustness

Abstract

Agriculture is recognized as a key determinant in the economic vitality of Sri Lanka. The prominent challenges faced by farmers include the pervasiveness of middlemen, insufficient storage infrastructure, substandard transportation between supply chain participants, and inadequate mechanization within the agricultural sector. This research primarily investigates the influence of Third-Party Logistics – including warehousing, distribution, and order fulfillment – on optimizing farmers' rewards, a process moderated by technology adaptation and mediated by supply chain robustness. The principal objective of this study is to explore and scrutinize the impact of logistics and its constituents on the optimization of compensations and additional benefits for farmers, which can be achieved by enhancing the supply chain through technological adaptation. To meet this objective, the researcher adopted a pragmatic philosophical position coupled with a deductive methodology. The research was conducted among farmers in the Northern Province of Sri Lanka. A sample of 180 farming households was chosen through a stratified simple random sampling technique that encompassed all Districts within the Province. An explanatory mixed method was employed as the methodological preference for the study, supplemented by a cross-sectional approach under the time horizon. The study's findings revealed that Third-Party Logistics positively impact reward maximization, and further demonstrated the moderating and mediating effects of technology adaptation and supply chain resilience. In conclusion, the paper presents recommended strategies, which include advancements in logistical practices and the implementation of updated technological solutions within agriculture. These recommendations could be adopted by farmers to maximize the monetary and non-monetary benefits.