The Impact of New Agricultural Operating Entities on Farmers' Adoption of Green Production Practices: Evidence From China

Abstract

New agricultural operating entities (NAOEs) are the organizational core of modern agricultural systems, yet whether and how they draw smallholders into green production remains empirically unsettled. Using survey data from 803 vegetable growers in Shandong Province, China, and combining the coefficient of variation method, propensity score matching, 2SLS, and mediation analysis, this study finds that growers linked to NAOEs exhibit a green production index that is 9.7 percentage points higher across a 14‐behavior index spanning pre‐production, in‐production, and post‐production stages. The effect operates through two of four theorized pathways: easing factor endowment constraints and improving transaction efficiency. Standardizing the production process and realizing product value addition are not significant, which we attribute to loose contractual ties, high supervision costs, and underdeveloped benefit‐sharing mechanisms. Among driving models, production services yield the largest effect (14.3%), followed by industrial chain extension (13.3%), new technology penetration (12.1%), and industry integration (8.2%); participating in multiple models raises the effect to 25.5%, with the pairing of new technology penetration and industry integration the strongest combination (22.1%).