Search results

1 – 10 of over 15000
Content available
Article
Publication date: 22 June 2020

Ilse Matser, Jelle Bouma and Erik Veldhuizen

Family farms, in which business and family life are intricately interwoven, offer an interesting context for better understanding the interdependence between the family…

Abstract

Purpose

Family farms, in which business and family life are intricately interwoven, offer an interesting context for better understanding the interdependence between the family and business system. Many family farms struggle to survive, and the succession process is a key period in which the low returns on investment become evident but also the emotional attachment of the family to the farm and the willingness to transfer the business to the next generation. We take the perspective of non-succeeding siblings since they are crucial for a successful succession but their role and position in this process is far from clear. This study will help to increase our knowledge of how fairness is perceived by non-successors and of the impact of perceived (in)justice on the family business system.

Design/methodology/approach

To analyze the effect on sibling relationships of an unequal outcome of the succession process, we choose the family farm context. We used interview data from multiple family members from several family farms in the Netherlands in different stages of succession. We utilized a framework based on justice theory to analyze perceptions of fairness among non-succeeding siblings. The central research question for this study is as follows: How do non-succeeding siblings perceive justice with regard to family firm succession?

Findings

The acceptance of the outcomes of the succession process by non-succeeding siblings is influenced by their perception of the fairness of the process itself and decisions made by the incumbent and successor with regard to these outcomes. It seems that stakeholders who occupy multiple roles with conflicting justice perspectives handle these contradictions with the help of an overarching goal—in this study, preserving the continuity of the family farm—and by prioritizing and adjusting the justice perspectives accordingly. The findings further show that both distributive justice and procedural justice are important and interact with each other.

Originality/value

Our study contributes to the literature by applying the theoretical framework of distributive and procedural justice to the context of family farm succession. This helps us to understand the position of non-succeeding siblings and their role and position in the succession process, which is important because sibling relationships have a significant impact on family harmony, with potential consequences for the business as well.

Details

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

Keywords

To view the access options for this content please click here
Article
Publication date: 7 November 2016

Aditya R. Khanal and Ashok K. Mishra

The purpose of this paper is to investigate the impact of internet usage on financial performance of small farm business households in the USA. In particular, the authors…

Abstract

Purpose

The purpose of this paper is to investigate the impact of internet usage on financial performance of small farm business households in the USA. In particular, the authors want to assess the impact of internet usage on small farm businesses, where the owner’s main occupation is farming. Using a nationwide farm-level data in the USA and a non-parametric matching estimator, the study finds a significant positive impact of internet usage on gross cash income, total household income, off-farm income. The study further suggests that small farm businesses receive benefits from internet usage as it facilitates reduction in income risk through off-farm income sources, as well as a reduction in marketing and storage costs; households’ non-farm transportation and vehicle leasing expenses.

Design/methodology/approach

In this study, the authors use the “nearest neighbors” matching method in treatment evaluation, developed by Abadie and Imbens (2002). In this method, a weighting index is applied to all observations and “nearest neighbors” are identified (Abadie et al., 2004). Although matching estimation through the nearest neighbor method does not require probit or logit model estimation per se, the authors have estimated a probit model because it allows the authors to check the balancing property and to analyze the association of included variables with the likelihood of internet use.

Findings

The study suggests that small farm business households using the internet are better off in terms of total household income and off-farm income. As compared to the control group (which is counterfactual, representation of small farm businesses not using the internet), small farm businesses using the internet earn about $24,000-$26,000 more in total household income and about $27,000-$28,000 more in off-farm income. Also, small farm businesses using the internet earn about $4,100-$4,900 more in gross cash farm income compared to their counterpart. The estimate of ATT for NFI is not different from zero. However, gross cash farm revenue increased significantly.

Practical implications

To this end internet can provide an important role in information gathering. Internet is one of the convenient means to access and exchange information. Information and communication facilitation through internet have opened up new areas of commerce, social networking, information gathering, and recreational activities beyond a geographical bound. Producers and consumers can take advantages of internet in both collaborative and competitive aspects in economic activities as it can reduce the information asymmetries among economic agents.

Social implications

Farmers will seek assistance in interpreting data and applying information to their farming operations, via the internet. Therefore, it is essential that land grant universities continue to improve the delivery of electronic extension and provide information in a clear and concise manner.

Originality/value

Studies in farm households have mainly investigated factors influencing internet adoption, purchasing patterns through internet, internet use, and applications. In most cases, impact analyses of communication and information technologies such as internet in agricultural businesses are discussed with references to large scale farm businesses. Thus, the authors know very little about access to the internet when it comes to small farm businesses and small farm households and about how it impacts well-being of small farm households.

Details

China Agricultural Economic Review, vol. 8 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Article
Publication date: 9 November 2010

Brian C. Briggeman and Maria M. Akers

Nonfarm small businesses are an integral part of the US economy, and access to credit is crucial to their success. In rural America, a significant proportion of these…

Abstract

Purpose

Nonfarm small businesses are an integral part of the US economy, and access to credit is crucial to their success. In rural America, a significant proportion of these businesses are owned by farm households. The purpose of this research is to compare farm households that operate a nonfarm business to other farm households as well as to rural and urban households operating a small business; and identify key factors that differentiate these businesses in their access to credit.

Design/methodology/approach

The paper uses a unique data set to draw comparisons between farm households (from Agricultural Resource Management Survey data) and rural and urban small businesses (from Survey of Small Business Finances data). Each of these data sets asks similar financial, demographic, and access to credit questions. Combining these data provide a unique way to analyze the financial health of farm households that operate nonfarm businesses.

Findings

The paper finds that farm households with a nonfarm business tend to have more household income and assets than other rural and urban small businesses and farm households without a nonfarm business. However, rural small business owners as well as farmers were able to access credit more freely than their urban counterparts.

Originality/value

Many studies have looked at the farmer's decision to work or invest off the farm. However, no study has considered the impact of owning a nonfarm business on the financial health and creditworthiness of a farm household.

Details

Agricultural Finance Review, vol. 70 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

To view the access options for this content please click here
Article
Publication date: 5 May 2004

Jill M. Phillips and Ani L. Katchova

This study examines credit score migration rates of farm businesses, testing whether migration probabilities differ across business cycles. Results suggest that…

Abstract

This study examines credit score migration rates of farm businesses, testing whether migration probabilities differ across business cycles. Results suggest that agricultural credit ratings are more likely to improve during expansions and deteriorate during recessions. The analysis also tests whether agricultural credit ratings depend on the previous period migration trends. The findings show that credit score ratings exhibit trend reversal where upgrades (downgrades) are more likely to be followed by downgrades (upgrades).

Details

Agricultural Finance Review, vol. 64 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

To view the access options for this content please click here
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…

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

To view the access options for this content please click here
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…

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

To view the access options for this content please click here
Article
Publication date: 10 August 2010

Gerard McElwee and Ivan Annibal

The purpose of this paper is to present an account of a Farm Support Project in Cornwall which provides support, advice and an outreach facility for farmers in the Penwith…

Abstract

Purpose

The purpose of this paper is to present an account of a Farm Support Project in Cornwall which provides support, advice and an outreach facility for farmers in the Penwith district of Cornwall. It also discusses how effective such schemes are, particularly in an external environment which poses threats to the farm sector in the UK. Three kinds of questions about the nature of farming and the status of farmers are posed. The first set of questions includes polarisations about the hegemonic position of farmers. Second, macro‐economic, and thus policy, questions concerning the economic “footprint” of the farmer and the farm's relationship with the economy are posed in Cornwall. The third set of questions concerns the economic role and entrepreneurial capability of the farmer in Cornwall.

Design/methodology/approach

A desk study of the scheme's objectives, a literature review, and interviews with 27 stakeholders were reported on specifically the results of the interviews.

Findings

The Penwith Scheme encompasses an integrated approach to providing business support to farmers including: sign‐posting specialist advisers, the facilitation of training assistance with major grant applications, the development of “social capital” through to help in accessing sources of social support.

Research limitations/implications

Farm Cornwall is a unique example of support to farmers. Replication of such a scheme across other rural regions and indeed other business sectors is possible and desirable but would require a full appraisal of the efficacy of regional and local business support to rural business.

Practical implications

Policy and practical implications for this scheme and others are described.

Originality/value

The novel aspect of the paper is that it describes a useful business support mechanism which has utility for a range of stakeholders involved in supporting the development of rural enterprises.

Details

Journal of Small Business and Enterprise Development, vol. 17 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

To view the access options for this content please click here
Article
Publication date: 14 March 2008

Štefan Bojnec and Laure Latruffe

The aim of this paper is to investigate technical, scale, allocative and economic efficiencies by data envelopment analysis (DEA) and stochastic frontier methods to…

Abstract

Purpose

The aim of this paper is to investigate technical, scale, allocative and economic efficiencies by data envelopment analysis (DEA) and stochastic frontier methods to provide a decision‐making tool and managerial implications in the measurement of farm business performance and efficiency.

Design/methodology/approach

Technical, scale, allocative and economic efficiencies are analyzed with the Farm Accountancy Data Network (FADN) sample for 13 farm business branches in Slovenia in the period 1994‐2003. DEA models are used with an output‐orientation, three outputs and four inputs. The non‐parametric DEA estimations are compared with a parametric stochastic frontier approach. The cluster analysis is used to identify three different farm business groups according to their performance.

Findings

The average technical, scale, allocative and economic efficiencies for the whole FADN sample over the analyzed period are relatively high (around or over 0.90), suggesting that, although the FADN sample contains very different farms, the latter have similar management practices, and are similarly able to make the best use of the existing technology. Five farm branches (crop, dairy, livestock using own feed, fruit, and forestry) are fully efficient with respect to all four analyzed efficiency measures, suggesting that these specializations have the best chance to compete on the European and world markets.

Originality/value

Studies of technical, scale, allocative and economic efficiencies are rare for transitional farm businesses, especially in Slovenia. The research contributes to the crucial issue of whether small family farm businesses might be able to compete on international markets, as Slovenian agriculture is characterized by such structures.

Details

Industrial Management & Data Systems, vol. 108 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

To view the access options for this content please click here
Article
Publication date: 1 December 2003

Gry Agnete Alsos, Elisabet Ljunggren and Liv Toril Pettersen

This exploratory study combines three theoretical approaches to investigate why farmers start additional business activities: the rural sociology perspective, the…

Abstract

This exploratory study combines three theoretical approaches to investigate why farmers start additional business activities: the rural sociology perspective, the opportunity perspective and the resource‐based perspective – as applied within entrepreneurship research. Building on in‐depth interviews of respondents from Norwegian farm households, three types of entrepreneurs were identified: the pluriactive farmer, the resource exploiting entrepreneur and the portfolio entrepreneur. These entrepreneurial types differed in regard to their basic motivation and objectives for start‐up, the source of their business ideas, the basis of competitive position and the connectivity between the new business and the farm, as well as in several other ways.

Details

Journal of Small Business and Enterprise Development, vol. 10 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

To view the access options for this content please click here
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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

1 – 10 of over 15000