E-Commerce Diffusion and Rural Entrepreneurship Evolution in Nigeria: Evidence from Agribusiness Value Chains

Abstract

The diffusion of e-commerce has emerged as a critical driver of rural entrepreneurship, particularly within agribusiness value chains in developing economies. This study investigates how e-commerce adoption influences the evolution of rural entrepreneurship in Nigeria, with a focus on farmers, cooperatives, and Agro-processors across Oyo, Kaduna, and Rivers states. Using a quantitative survey design, data were collected from 420 rural agribusiness entrepreneurs and analyzed through structural equation modeling (SEM) to examine the relationships between e-commerce diffusion, digital literacy, adoption barriers, and entrepreneurial performance. The results indicate that e-commerce diffusion has a significant positive effect on entrepreneurial performance (β = 0.43, p < 0.001), while digital literacy partially mediates this relationship (VAF = 21%). Adoption barriers, including limited internet access and infrastructural deficits, negatively affect performance (β = -0.22, p < 0.001). The findings underscore that digital transformation, coupled with human capital development, can substantially enhance rural entrepreneurship outcomes. Policy interventions aimed at improving digital literacy, infrastructure, and financial inclusion are recommended to maximize the benefits of e-commerce in Nigeria’s agribusiness sector.