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Article
Publication date: 5 May 2015

A Edward Staehr

The purpose of this paper is to illustrate the benefits of utilizing teams of personal and financial consultants to work with farm families in New York State on issues affecting…

1581

Abstract

Purpose

The purpose of this paper is to illustrate the benefits of utilizing teams of personal and financial consultants to work with farm families in New York State on issues affecting farm business performance.

Design/methodology/approach

Program experience in implementing an integrated consulting model provides a framework for illustrating how such a model may be utilized on farms and other family businesses for succession planning.

Findings

An integrated personal and financial consulting model is effective in producing lasting business results such as business growth, improved profitability, and reduced interpersonal conflict on farms in New York State.

Originality/value

Farmers employ a multitude of risk management tools, such as crop insurance, to reduce various types of risk affecting their farm businesses in New York State, but an area often overlooked by farmers is managing human resource risk, namely succession risk. As the average age of farmers in the USA continues to increase, employing new tools and strategies is critical when developing an effective business succession plan for farmers.

Details

Agricultural Finance Review, vol. 75 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 17 April 2023

Jingguang Ge and Leiming Li

Family farms are seen as a powerful force for rural development, and they are gaining more and more research attention. This study aims to explore the relationship between the…

Abstract

Purpose

Family farms are seen as a powerful force for rural development, and they are gaining more and more research attention. This study aims to explore the relationship between the social networks of family farms and the dual innovation of the family farm business model from the perspective of entrepreneurial orientation.

Design/methodology/approach

Using a questionnaire survey of 169 family farms in Qingdao, China, descriptive and inferential statistics were used to analyze the data collected. The study hypothesis was tested using inferential tests (regression analysis).

Findings

The study results show that innovative, efficiency- and novelty-based business models facilitated by social networks have a favorable and significant impact on the performance of family farms. Furthermore, the relationship between social networks and new business model creation is positively influenced by an entrepreneurial orientation.

Originality/value

This study is distinctive in that it examines the mechanisms underlying family farm growth from an entrepreneurial standpoint, classifying family farm social networks for the first time into social, market and governmental categories and looking at their impact on the creation of new business models. In addition, it looks into the relationship between the innovation and social network aspect of the family farm business model from an entrepreneurial perspective, offering fresh insight into this connection. It also examines the family farm business model’s connection to innovation and social networks from an entrepreneurial standpoint, providing new insight into this relationship.

Article
Publication date: 26 October 2020

Catherine Komugisha Tindiwensi, Ernest Abaho, John C. Munene, Moses Muhwezi and Isaac N. Nkote

The purpose of this paper is to analyse how entrepreneurial bricolage empowers smallholder commercial farming, from a family business perspective.

Abstract

Purpose

The purpose of this paper is to analyse how entrepreneurial bricolage empowers smallholder commercial farming, from a family business perspective.

Design/methodology/approach

The study employed a multiple case study design to analyse entrepreneurial bricolage in smallholder commercial farming in Uganda. It used multiple data collection methods and applied content analytical tchniques to establish cross-case correlations, patterns and relationships to aid in theory development and testing.

Findings

The study shows that entrepreneurial bricolage empowers smallholder commercialization through resource reallocation, improvization and prioritization as interconnected, self-reinforcing bricolage processes in smallholder farming. It provides evidence of how smallholder farms may not enact institutional limits, and overcome constraints imposed by their resource environments. It further reveals that smallholder commercial farms can be construed as family businesses given the interconnected relationship between farming business, family and smallholder farm(er).

Research limitations/implications

The study was conducted in smallholder farms hence results may be used cautiously in other sectors and economies where resource environments are not structurally defined. However, it provides lessons for family businesses in developed countries particularly the micro- and small businesses. It also renders smallholder farming as a lucrative area for family business research.

Originality/value

This study deepens our understanding of bricolage in smallholder farming and provides a springboard for scholarship in enhancing smallholder commercialization. It proposes a model for entrepreneurial bricolage in smallholder commercial farming.

Details

Journal of Family Business Management, vol. 11 no. 4
Type: Research Article
ISSN: 2043-6238

Keywords

Open Access
Article
Publication date: 11 April 2018

Alexandre Gori Maia, Daniele Cesano, Bruno Cesar Brito Miyamoto, Gabriela Santos Eusebio and Patricia Andrade de Oliveira Silva

The Sertão, located in the Northeastern region of Brazil, is the most populous semi-arid region in the world. The region also faces the highest rates of poverty, food insecurity…

3051

Abstract

Purpose

The Sertão, located in the Northeastern region of Brazil, is the most populous semi-arid region in the world. The region also faces the highest rates of poverty, food insecurity and climate risks in this country. Basic economic activities, such as extensive livestock and dairy farming, tend to be mainly affected by the increasing temperatures and recurrent droughts taking place in the past decades. This paper aims to analyze farmers’ responses to climatic variability in the Sertão.

Design/methodology/approach

Analyses are based on farm-level data of the Agricultural Census 2006 and on historical climate data gathered by meteorological stations. The climate impacts and the effectiveness of adaptive strategies are compared between three groups of farms, which discriminate different levels of social and environmental vulnerability. Four production functions are modeled (milk, cattle, goat and sheep) accounting for sample selectivity bias.

Findings

In response to increasing temperatures, farmers tend to shift their activities mainly to cattle and dairy farming. But the overall productivity tends to reduce with the recurrence of droughts. Decreasing precipitation affects mainly the production of milk of smallholder family farmers and the cattle herd of non-family farmers.

Research limitations/implications

Analyses do not account for short- and medium-run productive impacts of extreme droughts, which usually have devastating socioeconomic effects in the region.

Originality/value

Smallholder family farmers are the most vulnerable group who deserve more social and technical intervention, as they lack basic social and technological resources that can greatly improve their productivities and overcome the impacts of decreasing precipitation.

Details

International Journal of Climate Change Strategies and Management, vol. 10 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 10 October 2016

Elias Andersson and Peter Lundqvist

The agricultural sector has undergone extensive changes in the 20-30 years since the peak academic debate on family farming. Still today, the understanding and concept of family…

Abstract

Purpose

The agricultural sector has undergone extensive changes in the 20-30 years since the peak academic debate on family farming. Still today, the understanding and concept of family farming has political implications in the processes of rural and agricultural policy. The purpose of this paper is to study the development of agrarian structure by analysing the gendered and family relations of family farming.

Design/methodology/approach

This paper examines the concept of the family farm and its utilisation and diversity in the current Swedish agricultural sector from a gender perspective, using empirical data from the Farm Accountancy Data Network. The paper operationalises a situated agrarian typology and examines the gendered position and temporalities of family farms in Sweden, based on patterns of labour use.

Findings

A workable, fruitful typology of the agrarian structure suitable for future comparative studies is revealed. It also demonstrates the gendered time in the farm labour process, the different temporalities involved and their interconnection between gender, family and various spheres. The spatial and geographical implications, as well as the increased dependence on family and hired labour in different farm types, are emphasised.

Originality/value

The focus of this study contributes to the understanding of spatial-temporal relations of family farm business and organisation in general and in Sweden particularly. It also provides empirical basis for developing and gender mainstreaming rural and agricultural policies.

Details

Journal of Family Business Management, vol. 6 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 7 September 2015

Jonathan B Dressler and Loren Tauer

A family member may work for the family business even though the direct financial benefits he or she may receive in the form of a salary may be lower than what could be earned…

Abstract

Purpose

A family member may work for the family business even though the direct financial benefits he or she may receive in the form of a salary may be lower than what could be earned working for a non-family business. The lower amount may be accepted because of benefits of association with the family business. This psychic non-pecuniary return has been called socioemotional wealth in the family business research literature. The purpose of this paper is to propose a method to estimate socioemotional wealth and apply that technique to a group of family dairy farms to estimate socioemotional wealth for those family farms.

Design/methodology/approach

A panel regression method was used to empirically allocate net farm income to the unpaid factors of equity, labor, and management provided by a family member in a family farm partnership. The estimated returns of labor plus management are compared to the market salary earned by farm managers who manage farms. The difference between the higher hired farm manager salary and what the family manager earns in the family farm from labor and management is an estimate of the non-pecuniary return the family member receives from managing the family farm as compared to managing the non-family farm.

Findings

Differences in managers’ salary working for the non-family farm and the implied family manager financial compensation estimates indicate that family business managers’ non-pecuniary return from managing the family farm had an implied economic value averaging $22,026 per year over 1999-2008. Assuming that the manager would be indifferent between working for the family farm or the non-family farm if the sum of pecuniary and non-pecuniary returns were the same, the non-pecuniary annual benefits of $22,026 accrues in the form of socioemotional wealth associated as a member in the family business.

Originality/value

Although the literature discusses how family members may accept a lower salary working for the family business than they could earn doing comparable work in a non-family business because of non-financial rewards they experience working for the family business, there have been no estimates of the value of this pecuniary benefit. The authors arrive at an estimate using a group of family dairy farm businesses that have multiple family managers.

Details

Agricultural Finance Review, vol. 75 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 30 September 2013

Jane L. Glover

The purpose of this paper is to explore the use of social, cultural and symbolic capital alongside economic capital, according to Pierre Bourdieu, in small family businesses. The…

Abstract

Purpose

The purpose of this paper is to explore the use of social, cultural and symbolic capital alongside economic capital, according to Pierre Bourdieu, in small family businesses. The paper demonstrates that social, cultural and symbolic capital, play an important role in maintaining the family farm business and ensuring its survival.

Design/methodology/approach

Ethnographic case studies were selected using theoretical sampling techniques and a variety of data collection tools were used, interviews and participant observation, to construct the contextual and historical elements of each case.

Findings

The results, though highly case specific, indicate that: social networks (social capital) are important to farmers and their families, and these networks have been weakened over the years. Knowledge transfer is crucial to successful succession in the family business and as such cultural capital (knowledge, skills, qualifications, etc.) is retained within the business and accumulated from wider fields through educational qualifications. Symbolic capital is highly important to farmers and their families and could enlighten family business researchers as to why family farm businesses manage to survive the transition from one generation to the next.

Research limitations/implications

This paper provides insights into how family businesses use non-economic resources to pursue survival strategies. It also demonstrates the importance of exploring all family members, however small their contribution is to the business. The paper highlights how the different relationships between family members enable and hinder capital usage in the family farm business.

Originality/value

This paper explores family farm businesses from a sociological perspective to shed light on how they survive passing between generations, unlike many other family-owned businesses.

Details

Journal of Family Business Management, vol. 3 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 2 September 2014

Jane L. Glover

The purpose of the paper is to present a case example of the power struggles and gender issues one daughter faced when she became a partner, and future successor, in the family…

1975

Abstract

Purpose

The purpose of the paper is to present a case example of the power struggles and gender issues one daughter faced when she became a partner, and future successor, in the family business. This paper uses an ethnographic approach in order to study a small family farm in England. The case focuses on a small family farm, these businesses are unique in terms of their values and expectations for succession (Haberman and Danes, 2007), and identified by Wang (2010) as a fruitful avenue for research on daughter succession.

Design/methodology/approach

The empirical work was gathered through the use of a single site ethnographic case study involving participant observation as the researcher worked on the family farm and semi-structured interviews with family members over two years.

Findings

The results shed light on some of the social complexities of small family farms and power struggles within the family exacerbated by perceived gender issues. The work also highlights the potential threat to the daughter’s position as a partner, from her father’s favouritism of male employees.

Practical implications

Institutions that provide help to family farm businesses need to be aware of the potential power issues within the family specifically related to gender, particularly in terms of succession planning.

Originality/value

Using ethnography in family firms allows the researcher to be a part of the real-life world of family farmers, providing rich data to explore daughter succession.

Details

International Journal of Gender and Entrepreneurship, vol. 6 no. 3
Type: Research Article
ISSN: 1756-6266

Keywords

Article
Publication date: 15 March 2024

David J. Williams and Francisco Scott

Nonfamily farms are responsible for a disproportionate amount of US agriculture production. The importance of these operations to the volume of agriculture production in the…

Abstract

Purpose

Nonfamily farms are responsible for a disproportionate amount of US agriculture production. The importance of these operations to the volume of agriculture production in the United States has led researchers and policymakers to understand nonfamily farms as large commercial operations. This paper examines whether the distinction between family and nonfamily helps explain the financial outcomes of farm operations and households.

Design/methodology/approach

We test for differences in financial outcomes of the household and operations of family and nonfamily farms using an Oaxaca-Blinder decomposition. We compare these results to a decomposition of other possible typologies.

Findings

We present evidence that nonfamily farms are a heterogeneous group with a majority of small operations that are dominated by a small number of large operations. We discover that differences associated with the family-nonfamily distinction are largely explained by observable farm and operator characteristics that arise mechanically from the definition. However, we find suggestive evidence that family-nonfamily classification captures differences in economic behavior that lead to higher profitability measures to nonfamily farms. We find little evidence of any inherent structural differences between family and nonfamily farms that helps explain financial outcomes related to leverage or household finances.

Practical implications

We conclude that including nonfamily farms in official statistics of farm households may provide a more comprehensive overview of the farm sector, as our results suggest that family and nonfamily farms do not have innate differences that help explain many of their financial outcomes.

Originality/value

We incorporate previously unused data on nonfamily farm households and test the difference in mean financial outcomes between family and nonfamily farms.

Details

Agricultural Finance Review, vol. 84 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Open Access
Article
Publication date: 23 August 2023

Samuel Wayne Appleton and Diane Holt

Digitalisation is perceived as a new process that may add value to firms. Current theoretical understanding assumes it should be part of a firm's strategy to respond to multiple…

1138

Abstract

Purpose

Digitalisation is perceived as a new process that may add value to firms. Current theoretical understanding assumes it should be part of a firm's strategy to respond to multiple pressures in the business environment. This paper explores the occurrence of digitalisation in a rare context, that of the English agricultural industry in the United Kingdom, a place disproportionality filled with family firms. The general understanding of digitalisation in family firm settings remains embryonic. The authors' explorations make theoretical contributions to research at the intersection of rural entrepreneurship, family business and innovation.

Design/methodology/approach

Utilising a purposive, qualitative approach, primary data was collected from multiple interviews with 28 UK family farms, and secondary data from another 164. Interview transcripts were coded using NVivo, along with secondary data from reports, observations and websites.

Findings

The authors present empirical evidence illustrating how digitalisation manifests incrementally and radically in different types of family farms. The authors present a model that shows the areas of farming that have, and continue to be, digitalised. This increases analytical precision when identifying digitalisation activities that differ depending on the strategy to either scale or diversify. The authors propose that incremental digitalising occurs to a great extent during a scaling strategy, and that radical digitalising occurs to a smaller extent during diversification strategies in family farms.

Research limitations/implications

This research uses a sample of family-run farms from the UK agricultural sector to explore nuanced elements of digitalisation. It should therefore be explored in other types of family firms located in different sectors and geographies.

Practical implications

This research is important because family farms are under increasing pressure and have limited financial resources to deal with the digitalisation agenda. Therefore, empirical evidence helps other farms in similar situations. The authors found digitalisation investments, that tend to be capital intensive, only matter for scalers and less so for diversifiers. Family farms can use the model presented as a tool to evaluate their farm. The tool helps them define what to do, and ideate the potential activities that might be digitalised, to feed into their wider strategy.

Social implications

Family firms, in particular farms, are critical to many economies. The general consenses currently assumes all family firms should digitalise, yet the authors' evidence suggests that this is not the case. It is important to create policies that are sensitive to the needs of different types of businesses, in this case between family firm scalers and diversifiers, instead of simply incentivising digitalisation using a blanket approach usually by offering financial aid. Understanding how digitisation can support (or not) family firm resilience and growth in an effective and efficient manner can have significant benefit to individual firms, and across industries.

Originality/value

The proposed model extends theoretical understanding linking strategy, digitalisation activity and innovation in family farms. It shows that digitalisation is a key building block of scaling strategies, maximising digitalisation to increase efficiency. Yet, diversifying family farms minimise digitalisation, whereby they only digitalise a small amount of the farming activity. This empirical evidence contrasts with the wider narrative that farmers are slower at using new technology. This research found that some are slower because it does not align with their strategy. However, sometimes digitalisation aligns with their strategy during external changes, in which case the diversifiers are quick to act.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 2/3
Type: Research Article
ISSN: 1355-2554

Keywords

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