The Impact of Financial Factors on the After-Sales Service of Agricultural Machinery: A Case Study of Chinese Agricultural Machinery in South Africa

Abstract

Compared to other countries, the level of agricultural mechanization in Africa and South Africa is relatively low. Among the factors that influence agricultural mechanization, after-sales service of agricultural machinery is among the most significant. On the other hand, financial resources primarily impact on improvement and enhancement of after-sales service of farm equipment. In this paper, a questionnaire was employed as the method of quantitative data collection to assist in the analysis of data from 739 respondents in the Chinese context. Due to the Covid-19 pandemic in 2020 (Mmbengwa & Qin, 2020), no questionnaires were collected from South Africa for the purposes of this paper. A standard multiple regression analysis (MRA) was utilized to analyze the data collected from the structured questionnaires. Evidence from this study suggests that combining these financial resource factors has a major effect (F2 = 0.802) on the after-sales service of farm equipment. The high scores obtained for economic factors and analyzed in this study mean that, to a large extent, these have a major impact on China’s after-sales service for agricultural machinery in South Africa.