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Open Access
Article
Publication date: 5 June 2023

Štefan Bojnec and Imre Fertő

This article aims to investigate the financial constraints and nonlinearity of farm size growth.

Abstract

Purpose

This article aims to investigate the financial constraints and nonlinearity of farm size growth.

Design/methodology/approach

Farm size growth is measured with land, labor and output using data from the Farm Accountancy Data Network (FADN) for Hungary and Slovenia. A dynamic panel model is applied to assess financial constraints and nonlinearity of farm size growth.

Findings

Results show that, except for land in Slovenia and output in Hungary, liquidity constraints are less important for farm size growth than endogenous factors based on farm size growth expectations and steady farm size restructuring. Smaller farms are growing faster than larger ones. The hypothesis that a higher level of subsidies would increase farm size is not supported for Hungary. When farms reach a certain size, the land area of the largest farms increases. Farm debts in Hungary are linked with land growth and in Slovenia with output growth.

Research limitations/implications

Further research on the impact of liquidity constraints and subsidies can be conducted at a disaggregate farm-type level to examine whether there is variability in the underlying interlinkages at the farm-type specialization level.

Practical implications

The implication that farm size growth is dependent on initial size and that smaller farms are growing faster than bigger ones indicates that it is not necessary to favor the fastest growing smaller farms thus supports the application of a non-discriminatory farm size policy for observing farm size structural changes.

Originality/value

The dynamic panel econometric model that incorporates cash flow as a measure of financial constraints provides insight into farm size growth in cross-country comparison in relation to potential farm liquidity constraints, farm debt and the nonlinearity of farm size, which information is of relevance to policy makers and practitioners.

Details

Journal of Advances in Management Research, vol. 21 no. 1
Type: Research Article
ISSN: 0972-7981

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…

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

Article
Publication date: 8 June 2023

Alphonse Singbo and Jourdain Chambord Lokossou

The farm sector is crucial for rural poverty alleviation, alongside the non-farm sector, which contributes to mitigating risks associated with crop failures. This paper…

Abstract

Purpose

The farm sector is crucial for rural poverty alleviation, alongside the non-farm sector, which contributes to mitigating risks associated with crop failures. This paper investigates the effects of public policies on productive employment within both the farm and non-farm sectors in sub-Saharan Africa.

Design/methodology/approach

A meta-analysis is conducted exclusively on the results of the Partnership for Economic Policy (PEP)-funded studies under the Policy Analysis on Growth and Employment (PAGE II) initiative. Selected studies focused on the impact of public policies on productive employment in rural farm and non-farm sectors, encompassing a total of nine sub-Saharan Africa countries in: Benin, Burkina Faso, Cote d'Ivoire, Democratic Republic of Congo, Ghana, Lesotho, Nigeria, Senegal and South Africa.

Findings

The results indicate that public investments in rural areas and public policies that facilitate access to productive resources are likely to enhance productive employment. The overall effect size is positive and significant, ranging from 2% to 10% increases in productive employment. Sources of variation include the sector of activity and the policy instrument. In addition, the policy effects are gender-sensitive and seem more consistent in the non-farm sector.

Research limitations/implications

Although the selected working papers addressed several aspects of productive employment, other aspects warrant further investigation. Policies involving restrictions or regulations have received little attention in the impact analysis. Researches to fill this gap would be important. Another suggestion for further research is the analysis of the relative importance of non-farm employment in rural areas in developing countries. It is always assumed that rural households depend heavily on agriculture for their subsistence.

Originality/value

The contribution of the paper lies in the comparative analysis of numerous public policies implemented in nine distinct countries. By consolidating data from fourteen 14 different experiences into a single study, the paper offers valuable insights on factors that determine policy effectiveness and contribute to understanding what worked for whom and why.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 28 February 2023

Paul Kwame Nkegbe, Abdelkrim Araar, Benjamin Musah Abu, Yazidu Ustarz, Hamdiyah Alhassan, Edinam Dope Setsoafia and Shamsia Abdul-Wahab

Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural…

Abstract

Purpose

Ghana's economy is largely agrarian, and the business of agriculture is dominated by smallholder farmers who are predominantly rural dwellers. As a result, efforts to lift rural farming households from poverty have been narrowed to the promotion of agricultural development to the neglect of the rural non-farm sector. However, this is fast changing in the advent of a burgeoning rural nonfarm economy and must engage the attention of policy actors. This study thus assesses the effect of non-farm participation on households' level of commercialization of agricultural crops in Ghana.

Design/methodology/approach

The study applies a generalized structural equation model (GSEM) to the Ghana Living Standards Survey round 6 dataset, a stratified and nationally representative random sample of 16,772 households in 1,200 enumeration areas.

Findings

This study finds that non-farm participation increases the produce sold to output ratio. It is concluded that non-farm engagement by farmers boosts commercialization in Ghana. Thus, for the Ghanaian and similar contexts, agricultural development interventions that incorporate non-farm activities are more likely to be successful in improving livelihoods.

Research limitations/implications

The study uses only the ratio of sales value to output value definition for commercialization and acknowledges use of multiple definitions could be superior.

Originality/value

Various empirical studies have examined the link between the farm and nonfarm sectors. This paper is original in its approach as it tackles an aspect of the subject that has been understudied, namely, an exploration of nonfarm and farm linkages from the perspective of agricultural commercialization.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 15 December 2023

Josune Sáenz, Henar Alcalde-Heras, Nekane Aramburu and Marta Buenechea-Elberdin

Following the contextual approach to intellectual capital, this study analyzed the specific types of external relational capital that foster product/service, process and…

Abstract

Purpose

Following the contextual approach to intellectual capital, this study analyzed the specific types of external relational capital that foster product/service, process and managerial innovativeness in organic farming as key drivers of sustainable food production.

Design/methodology/approach

Survey data from 358 organically certified Spanish farmers were analyzed using structural equation modeling based on partial least squares. A total of three models, one for each type of innovativeness, were developed to analyze the impact of external relational capital. These models took into account four specific types of relational capital: vertical relationships, horizontal relationships, relationships with government institutions and relationships with knowledge-intensive institutions.

Findings

Although relational capital and innovativeness are clearly underdeveloped, knowledge generated through and embedded in external relationships plays a substantial role in promoting innovativeness in organic farming. Moreover, depending on the type of innovation to be developed, the type of external relational capital that is relevant differs.

Practical implications

This study's findings indicate that organic farmers prioritize process innovation over product/service and managerial innovation. For the latter categories, building relationships with customers, consumers and government institutions is key. Policymakers should encourage farmer-engaging socialization spaces that emphasize family farms and their knowledge contribution.

Originality/value

Past studies have examined the overall degree of association between external relational capital and innovation, often overlooking the nuances of contextual factors. In contrast, this research delves into the unique contributions of knowledge sourced from various external relationships, focusing specifically on how these relationships influence different types of innovation within the specific context of organic farming.

Details

Journal of Intellectual Capital, vol. 25 no. 1
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 14 July 2022

Satya Prasad Padhi

The paper underpins an advanced domestic manufacturing that comes with some advanced employment specialization status of individual industries as the key determinant of foreign…

Abstract

Purpose

The paper underpins an advanced domestic manufacturing that comes with some advanced employment specialization status of individual industries as the key determinant of foreign direct investment (FDI) and considers how FDI in the food processing industry in India relates to this focal point.

Design/methodology/approach

This paper investigates how inward FDI inflows relate to domestic investment and revival in the industry using Auto Regressive Distributed lags (ARDL) model over the period 2000–2017. The model allows for different specifications to study whether FDI is responsible for the revival or the prior revival induces the FDI.

Findings

The results show the lack of proper advanced specialized employment status of the food processing industry. FDI in food processing is mainly guided by exports and imports opportunities and FDI plays no role in the revival of advanced growth in the industry. This finding explains why FDI in the industry is predominantly service sector oriented.

Originality/value

The paper underlines (1) the proper conceptualization of human capital as an important determinant of FDI; (2) reinterpretation of Kaldor's technical progress function that uncovers how employment dynamics embedded in intermediate goods specializations play a key role in supporting a higher pace of investment (and FDI); (3) labor costs' importance should involve not only the wage rate but also the advantages that a specialized employment base and (4) FDI in manufacturing demands a greater policy focus on developing domestic bases of intermediate goods specializations.

Details

International Journal of Emerging Markets, vol. 19 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 10 May 2023

Zainal Abidin, Wiwiek Rabiatul Adawiyah, Intan Shaferi and Akhmad Sodiq

Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business…

Abstract

Purpose

Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business. Using resources dependence theory, the purpose of this study is to analyze to ascertain whether financial innovation has a powerful solution for business sustainability and, hence, poverty alleviation in developing countries. This study reviews the financial innovations offered by Dompet Dhuafa Republika in integrated supply chain management (ISCM) of smallholder livestock business through Tebar Hewan Kurban (Spreading Sacrificial Animals) program to overcome capital and marketing problems at the farmer level and distribute Qurban meat to the recipients.

Design/methodology/approach

This study was conducted using descriptive qualitative method. The data were obtained through a field survey, by interviewing two crowdfunding-based investment companies, 250 partner farmers, program managers and assistants, marketing partners, donors/consumers/person who sacrifice and Mustahik (recipients of Qurban meat) involved in program implementation, using purposive sampling method. Focus group discussion was conducted with selected panelists to validate the results of the field survey.

Findings

The results of this study showed that the Tebar Hewan Kurban program provides greater benefits to farmers, while increasing the distribution of Qurban meat to be more equitable. The role of moneylenders and middlemen can also be eliminated. Donors feel satisfied because their goals are fulfilled in the Qurban ritual. Program implementers and investors also got decent returns. ISCM is very feasible to be developed on a wider scale, to improve the welfare of farmers or fishermen.

Research limitations/implications

This study used a set of samples of the assisted areas from only one institution, which may lead to institution-specific results. Although the sample is small, the results of this study are expected to provide new insights into the implementation of the Qurban, which will provide more profits and benefits for partner farmers. In broader practice, the program flow is worth considering compared to similar programs in other institutions, in Indonesia or abroad. Because of the COVID-19 pandemic situation, the field survey and focus group discussion were carried out online.

Practical implications

The results show that ISCM is able to increase the income of farmers. Practically, this program can be duplicated in similar institutions, as well as in government or non-government organizations, in Indonesia and abroad, that have the same context and activity.

Social implications

This study offers several social contributions by exploring how and why ISCM can eliminate the role of moneylenders and middlemen, increasing the small farmers' income, providing reasonable profits to parties involved in marketing and satisfying donors and equitable distribution of Qurban meat.

Originality/value

This study contributes to the literature by confirming the higher impact of ISCM in social business on poverty alleviation. Therefore, this paper provides an alternative solution to increase the income of small farmers through the supply of animals for Qurban or other religious rituals through ISCM arrangements.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 8 September 2023

Ekundayo Peter Mesagan and Xuan Vinh Vo

The authors analyse the interactive influence of energy use, capital investment and finance on pollution in energy-dependent African countries.

Abstract

Purpose

The authors analyse the interactive influence of energy use, capital investment and finance on pollution in energy-dependent African countries.

Design/methodology/approach

The study analyses data from 5 selected energy-dependent African nations (i.e. Algeria, Egypt, Nigeria, Morocco and South Africa) between 1981 and 2020 using the fully modified ordinary least squares (FMOLS) approach.

Findings

The panel result reveals that capital investment and energy interaction and financial development and capital investment moderation reduce pollution in all the countries. However, for country-specific results, the interaction of investment and energy lowers emissions in Algeria, South Africa, Nigeria and Morocco but increases pollution in Egypt. Similarly, except for Egypt, financial development and capital investment interaction offset pollution in Algeria, Nigeria, South Africa and Morocco.

Research limitations/implications

The limitation of the study stems from the inability to extend the scope to cover the entire African region. However, the fact that the authors selected the most prominent African nations in the sample to enable us to set the template for other smaller nations to follow makes the study tenable in its present form.

Practical implications

Energy-dependent African countries should invest in eco-friendly machines, technologies and equipment to lower pollution vis-à-vis production expansion.

Originality/value

The present research is more expansive by combining the finance and capital investment channels in the quest for decarbonising emerging African nations. Moreover, this is a comparative study, unlike past studies that mainly deploy a one-size-fits-all approach.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 21 March 2024

Graeme Newell and Muhammad Jufri Marzuki

Renewable energy infrastructure is an important asset class in the context of reducing global carbon emissions going forward. This includes solar power, wind farms, hydro, battery…

Abstract

Purpose

Renewable energy infrastructure is an important asset class in the context of reducing global carbon emissions going forward. This includes solar power, wind farms, hydro, battery storage and hydrogen. This paper examines the risk-adjusted performance and diversification benefits of listed renewable energy infrastructure globally over Q1:2009–Q4:2022 to examine the role of renewable energy infrastructure in a global infrastructure portfolio and in a global mixed-asset portfolio. The performance of renewable energy infrastructure is compared with the other major infrastructure sectors and other major asset classes. The strategic investment implications for institutional investors and renewable energy infrastructure in their portfolios going forward are also highlighted. This includes identifying effective pathways for renewable energy infrastructure exposure by institutional investors.

Design/methodology/approach

Using quarterly total returns, the risk-adjusted performance and portfolio diversification benefits of global listed renewable energy infrastructure over Q1:2009–Q4:2022 is assessed. Asset allocation diagrams are used to assess the role of renewable energy infrastructure in a global infrastructure portfolio and in a global mixed-asset portfolio.

Findings

Listed renewable energy infrastructure was seen to underperform the other infrastructure sectors and other major asset classes over 2009–2022. While delivering portfolio diversification benefits, no renewable energy infrastructure was seen in the optimal infrastructure portfolio or mixed-asset portfolio. More impressive performance characteristics were seen by nonlisted infrastructure funds over this period. Practical reasons for these results are provided as well as effective pathways going forward are identified for the fuller inclusion of renewable energy infrastructure in institutional investor portfolios.

Practical implications

Institutional investors have an important role in supporting reduced global carbon emissions via their investment mandates and asset allocations. Renewable energy infrastructure will be a key asset to assist in the delivery of this important agenda for a greener economy and addressing global warming. Based on this performance analysis, effective pathways are identified for institutional investors of different size assets under management (AUM) to access renewable energy infrastructure. This will see institutional investors embracing critical investment issues as well as environmental and social issues in their investment strategies going forward.

Originality/value

This paper is the first published empirical research analysis on the performance of renewable energy infrastructure at a global level. This research enables empirically validated, more informed and practical decision-making by institutional investors in the renewable energy infrastructure space. The ultimate aim of this paper is to articulate the potential strategic role of renewable energy infrastructure as an important infrastructure sector in the institutional real asset investment space and to identify effective pathways to achieve this renewable energy infrastructure exposure, as institutional investors focus on the strategic issues in reducing global carbon emissions in the context of increased global warming.

Details

Journal of Property Investment & Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 9 February 2024

Taiwo Akinlo and Busayo Olubunmi Aderounmu

This study aims to provide an empirical investigation into rising capital flight and the role of institutional quality to mitigate its effect on the real sector in sub-Saharan…

Abstract

Purpose

This study aims to provide an empirical investigation into rising capital flight and the role of institutional quality to mitigate its effect on the real sector in sub-Saharan Africa (SSA).

Design/methodology/approach

The study uses the system generalized method of moments and uses data spanning from 1989 to 2020 from 26 SSA countries.

Findings

The findings show that capital flight has no direct impact on the real sector while institutional quality adversely impacted the agricultural and industrial sectors. The study also found that institutional quality is unable to mitigate the effect of capital flight on the industrial sector.

Originality/value

This study investigates if institutional quality mitigates the impact of capital flight on the real sector proxied by industrial value-added and agriculture value-added.

Details

Journal of Money Laundering Control, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1368-5201

Keywords

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