Sustainable Entrepreneurial Behaviour and Enterprise Performance among Farmers in Ratnapura District, Sri Lanka: The Mediating Role of Sustainable Value Creation
DOI:
https://doi.org/10.61308/IBXE6664Keywords:
Enterprise Performance, Farmers, Ratnapura District, Sustainable Entrepreneurial Behaviour, Sustainable Value CreationAbstract
This study investigates the relationship between Sustainable Entrepreneurial Behaviour (SEB) and Enterprise Performance (EP) among farmers in Ratnapura District, Sri Lanka, with particular emphasis on the mediating role of Sustainable Value Creation (SVC). By examining how sustainable entrepreneurial behaviour (SEB) contributes to EP through value-creation processes, the study addresses an important gap in the sustainable agricultural entrepreneurship literature, particularly within the smallholder farming context. The study involved 392 farmers participating in agricultural extension and training programmes conducted by the Provincial Department of Agriculture, Sabaragamuwa Province. A non-proportionate random sampling technique was employed to select survey participants, while two focus group discussions, each involving ten farmers, were conducted between September and October 2024 to contextualise the quantitative findings. Survey data collected between March and August 2024 were analysed using Structural Equation Modelling (SEM). The findings indicate positive and statistically significant associations between SEB and EP (β = 0.638, p < 0.001), SEB and SVC (β = 0.602, p < 0.001), and SVC and EP (β = 0.293, p < 0.001). A significant indirect association between SEB and EP through SVC was also identified (β = 0.176, p = 0.001), supporting the potential mediating role of SVC. These findings highlight the value of examining SVC as a mechanism through which SEB may contribute to EP. However, given the suboptimal fit of the measurement model, the structural relationships should be interpreted with caution and in light of this model-fit limitation. The qualitative findings provide contextual support for the quantitative results, highlighting farmers’ engagement in sustainability-orientated production and value-creation practices. Hence, the study provides useful empirical evidence on the interrelationships among SEB, SVC and EP and offers practical implications for strengthening agricultural extension, sustainability-orientated entrepreneurship and sustainable enterprise development in Sri Lanka.
References
Agbakwuru, V., Onyenahazi, O. B., Antwi, B. O., & Oyewale, K. (2024). The Impact of Environmental, Social, and Governance (ESG) Reporting on Corporate Financial Performance. International Journal of Research Publication and Reviews, 5(9), 3629-3644. doi: 10.55248/gengpi.5.0924.2710 DOI: https://doi.org/10.55248/gengpi.5.0924.2710
Avelar, S., Borges-Tiago, T., Almeida, A., & Tiago, F. (2024). Confluence of sustainable entrepreneurship, innovation, and digitalization in SMEs. Journal of Business Research, 170, 114346. doi:10.1016/j.jbusres.2023.114346 DOI: https://doi.org/10.1016/j.jbusres.2023.114346
Behera, D., Fathima, J., Cata Saady, N. M., Zendehboudi, S., Albayati, T. M., Al-nayili , A., … Ruiz Espinoza, J. E. (2026). Sustainable agriculture through environmental adaptation engineering for waste management. Green Technologies and Sustainability, 4(1), 100242. doi:https://doi.org/10.1016/j.grets.2025.100242 DOI: https://doi.org/10.1016/j.grets.2025.100242
Boiko, V., Lyzak, M., Vasyltsiv, T., Lupak, R., & Ohinok, S. (2024). Financial and economic performance of agricultural enterprises: analysis and policy improvement. Agricultural and Resource Economics International Scientific E-Journal, 10(4), 129-155. doi:10.51599/are.2024.10.04.06 DOI: https://doi.org/10.51599/are.2024.10.04.06
Bruni, A., Magno, F., & Cassia, F. (2025). Environmental sustainability and technology as interconnected drivers of business model innovation in the agri-food industry: insights from multiple case studies. Baltic Journal of Management, 20(3), 312-339. doi:https://doi.org/10.1108/BJM-08-2024-0476 DOI: https://doi.org/10.1108/BJM-08-2024-0476
De Silva, A., Shivashankar, P., Elapata, M. S., Rathnayake, M., & Basnayake, R. (2021). Conflict between gem mining and Small holder agricultural System: A case study in the Rathnapura District. Sabaragamuwa University of Sri Lanka. Retrieved from https://www.researchgate.net/publication/355477641_Conflict_between_gem_mining_and_Small_holder_agricultural_System_A_case_study_in_the_Rathnapura_District
Do Prado, N. B., Pigola, A., Marcondes de Moraes, G. H., Pinheiro, A. B., Fischer, B. B., & Ávila, L. V. (2026). The power lies within: entrepreneurial perspectives and the micro-foundations of sustainable value creation. The Bottom Line, 1-23. doi:https://doi.org/10.1108/BL-08-2025-0184 DOI: https://doi.org/10.1108/BL-08-2025-0184
Eelager, M. P., Dalbanjan, N. P., Madihalli, S., Madar, M., Agadi, N. P., Korganokar, K., & Kiran, B. K. (2025). Pathways to a sustainable future: Exploring the synergy between sustainability and circular economy. Sustainable Futures, 101208. doi:https://doi.org/10.1016/j.sftr.2025.101208 DOI: https://doi.org/10.1016/j.sftr.2025.101208
Fleet, D. V., Fleet, E. V., & Seperich, G. J. (2013). Agribusiness: Principles of Management.Amazon.com. Retrieved from: https://books.google.lk/books/about
Futre, B., & Crespo, N. F. (2025). Enhancing sustainable performance through sustainable business model innovation. Journal of Small Business Management, 1474-1520. doi: https://doi.org/10.1080/00472778.2025.2556764 DOI: https://doi.org/10.1080/00472778.2025.2556764
Hadjielias, E., & Cruz, A. D. (2024). Sustainable entrepreneurial behaviours of family members at the intersection of family firm, cooperative and rural community: a multilevel perspective. Entrepreneurship and Regional Development, 36(7-8), 1-30. doi: 10.1080/08985626.2024.2376068 DOI: https://doi.org/10.1080/08985626.2024.2376068
Hardi, P., & Zdan, T. (1997). Assessing sustainable development: Principles in Practice. Winnipeg, Manitoba: The International Institute for Sustainable Development. Retrieved from https://www.iisd.org/system/files/publications/bellagio.pdf
Hasan, M., Supatminingsih, T., Tahir, T., Guampe, F. A., Huruta, A. D., & Lu, C. Y. (2025). Sustainable agricultural knowledge-based entrepreneurship literacy in agricultural SMEs: Triple bottom line investigation. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), 100466. doi:https://doi.org/10.1016/j.joitmc.2025.100466 DOI: https://doi.org/10.1016/j.joitmc.2025.100466
Hazudin, S. F., Zaki, S. M., Saripin, M. S., Jabar, F. A., Ramayah, T., & Adnan, N. M. (2023). Sustainable Entrepreneurship Practices as Predictor of Micro Enterprises Performance in Rural Context: A Structural Equation Modeling Approach. Journal of Sustainability Science and Management, 18(7), 11-34. Retrieved from https://jssm.umt.edu.my/wp-content/uploads/2024/01/2-JSSM-Volume-18-Number-7-July-2023-FINAL.pdf DOI: https://doi.org/10.46754/jssm.2023.07.002
Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610. DOI: https://doi.org/10.1177/001316447003000308
Lakmali, W. S., Kumara, A. S., & Weerakkody, W. S. (2024). Rising With Agriculture: Challenges and New Perspectives. In J. Edirisinghe, C. Abeysinghe, P. Warakagoda, E. Wijesinghe, & S. Salgado. In: Commemoration of the 25th Annnivasary of the Faculty of Agriculture and Plantation Management (pp. 100-124). Center for Agri-Science Publications, Faculty of Agriculture and Plantation Management, Wayamba University of Sri Lanka. Retrieved from https://fapm.wyb.ac.lk/wp-content/uploads/2024/25th_Anni_Book/25th-Anniversary-Book-of-FAPM.pdf
Manninen, K., Laukkanen, M., & Huiskonen, J. (2023). Framework for sustainable value creation: a synthesis of fragmented sustainable business model literature. Management Research Review, 47(1), 99-122. DOI: https://doi.org/10.1108/MRR-03-2022-0177
Meghawarna, S. (2023, Apr. 25). Investing in Agriculture in Sri Lanka: Challenges and Reasons. https://www.linkedin.com/pulse/investing-agriculture-sri-lanka-challenges-reasons-shashimeghawarna.
Miaris, G., Hansson, H., & Sok, J. (2025). The relationship between entrepreneurial orientation and farmers’ satisfaction with business performance: Insights from Swedish agriculture. The International Journal of Entrepreneurship and Innovation, 14. doi: https://doi.org/10.1177/14657503251327353 DOI: https://doi.org/10.1177/14657503251327353
Ministry of Agriculture (MOA). (2023). Smallholder Agribusiness Partnership Programme. Smallholder Agribusiness Partnerships from Rural Roots to Technological Triumph: Empowering Young Greenhouse Farmers in Sri Lanka. Retrieved from https://sapp.lk/2023/04/28/from-rural-roots-to-technological-triumph-empowering-young-greenhouse-farmers-in-sri-lanka/
MOA. Sri Lanka Labor force survey report. (2020). 129. Retrieved from: http://www.statistics.gov.lk/Resource/en/LabourForce/Annual_Reports/LFS2020.pdf abgerufen
Nadeeshani, K. N. (2026). Tea Based Smallholder Farming Systems in Rathnapura District Sri Lanka. International Journal of Research Publication and Reviews, 7(2), 2157-2165 . Retrieved from https://ijrpr.com/uploads/V7ISSUE2/IJRPR59794.pdf
Navaratne, N. G., Wanigasundera, W. D., & Alahakoon, P. B. (2019). Perceptions of Climate Change and Adaptation of Climate Smart Technology by the Tea Smallholders: A Case Study of Ratnapura District in Sri Lanka. Asian Journal of Agricultural Extension, Economics & Sociology, 36(3), 1-18. doi: 10.9734/ajaees/2019/v36i330244 DOI: https://doi.org/10.9734/ajaees/2019/v36i330244
Nazir, J., & Das, P. K. (2025). A systematic literature review on factors of perception impacting entrepreneurial success based on PRISMA framework. Journal of Innovation and Entrepreneurship, 14, 49. doi:https://doi.org/10.1186/s13731-025-00491-y DOI: https://doi.org/10.1186/s13731-025-00491-y
Ofozor, C. (2025, Jun 09). The Hidden Link: How Economic Value Creation Transforms Performance Management. Retrieved from https://www.jasmizasolutions.com.my/blog/economic-value-creation-and-performance-management
Panda, D., & Haque, S. (2026). Sustainable value creation using open data: Best practices from the manufacturing sector. Cleaner Production Letters, 10, 100144. doi:https://doi.org/10.1016/j.clpl.2026.100144 DOI: https://doi.org/10.1016/j.clpl.2026.100144
Provincial Department of Agriculture (Sabaragamuwa). (2023). Retrieved from https://sg.gov.lk/web/pages/agriculture-department/
Ranaweera, C. (2022) Impact of Entrepreneurial Knowledge on Strategic Orientation of Small and Medium Enterprises in Ratnapura District. 1st International Research Symposium on Management 2022At: Faculty of Management Studies, Rajarata University of Sri Lanka., (pp. 213-219).
Rathnachandra, D., Malkanthi, P., Esham, M., & Samaraweera, G. R. (n.d.). (2025). Why Does Entrepreneurship Remain a Challenge? Insights from Farmers in the Ratnapura District, Sri Lanka. International Conference on Agriculture and Plantation Management (InCAPM), 16th – 18th May 2025, Makandura, Sri Lanka, (p. 185). Retrieved from https://www.researchgate.net/publication/392442373_Why_Does_Entrepreneurship_Remain_a_Challenge_Insights_from_Farmers_in_the_Ratnapura_District_Sri_Lanka
Rosário, A. T., & Figueiredo, J. (2024). Sustainable entrepreneurship and corporate social responsibility: Analysing thestate of research. Environmental Resource Management, 10(1), 2324572. doi:https://doi.org/10.1080/27658511.2024.2324572 DOI: https://doi.org/10.1080/27658511.2024.2324572
Rust, N. A., Ptak, E. N., Graversgaard, M., Iversen, S. V., Reed, M. S., De Vries, J. R., . . . Dalgaard, T. (2020). Social capital factors affecting uptake of sustainable soil management practices: a literature review. Emerald Open Research, 2(8). doi: 10.35241/emeraldopenres.13412.2 DOI: https://doi.org/10.1108/EOR-10-2023-0002
Salinas, G., & Abril, C. (2025). Exploring the relationship between sustainability perceptions and brand value: how and why does perceived sustainability affect brand value? Spanish Journal of Marketing. doi:https://doi.org/10.1108/SJME-08-2024-0240 DOI: https://doi.org/10.1108/SJME-08-2024-0240
Sargani, G. R., Zhou, D., Raza, M. H., & Wei, Y. (2020). Sustainable Entrepreneurship in the Agriculture Sector: The Nexus of the Triple Bottom Line Measurement Approach. Sustainability, 12, 3275. doi:10.3390/su12083275 DOI: https://doi.org/10.3390/su12083275
Sartzetaki, M., Karagkouni, A., & Dimitriou, D. (2025). Enterprise Strategic Management Upon Sustainable Value Creation: A Fuzzy Topis Evaluation Tool for Transport and Supply Chain Enterprises. Sustainability, 17(11), 5011. doi:https://doi.org/10.3390/su17115011 DOI: https://doi.org/10.3390/su17115011
Sjödin, D., Parida, V., Jovanovic, M., & Visnjic, I. (2020). Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome-Based Business Models. Journal of Product Innovation Management, 37(2), 158-183. doi: https://doi.org/10.1111/jpim.12516 DOI: https://doi.org/10.1111/jpim.12516
Sreenivasan, A., & Suresh, M. (2023). Exploring the contribution of sustainable entrepreneurship toward sustainable development goals: A bibliometric analysis. Green Technologies and Sustainability, 1(3), 100038. doi: 10.1016/j.grets.2023.100038 DOI: https://doi.org/10.1016/j.grets.2023.100038
Thakur, N., Sharma, R., Thakur, P., Shilpa, Chaturvedi, A., Khushwaha, R., . . . Sharma, P. (2025). Exploring the entrepreneurial behavior of vegetable growers: influential factors and implications for agricultural development. Front. Sustain. Food Syst., 9. doi: https://doi.org/10.3389/fsufs.2025.1512414 DOI: https://doi.org/10.3389/fsufs.2025.1512414
Thompson, N. (2023, March 9). Coefficient Alpha Reliability Index. Retrieved from https://assess.com/coefficient-alpha-reliability/
van Luijn, D., Materia, V. V., & Dolfsma, W. W. (2026). Entrepreneurial identity and behavioural heterogeneity in sustainable agricultural practices adoption in the Philippines. Journal of Rural Studies, 123, 104065. DOI: https://doi.org/10.1016/j.jrurstud.2026.104065
Volkov, A., Morkunas, M., Balezentis, T., & Šapolaitė, V. (2020). Economic and Environmental Performance of the Agricultural Sectors of the Selected EU Countries. Sustainability, 12(3), 1210. doi:https://doi.org/10.3390/su12031210 DOI: https://doi.org/10.3390/su12031210
Vrontis, D., Chaudhuri, R., & Chatterjee, S. (2022). Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation. Sustainability, 14(13), 7949. doi: https://doi.org/10.3390/su14137949 DOI: https://doi.org/10.3390/su14137949
Yusuf, B., Iswandi, R. M., Nikoyan, A., & Arsyad, M. (2024). Trust as Social Capital in Farming Business Activities in Supporting Success Rice. Journal of Global Innovations in Agricultural Sciences, 12(X), XXX. doi:https://doi.org/10.22194/JGIAS/24.1436
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Bulgarian Journal of Agricultural Economics and Management
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
