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Article
Publication date: 14 May 2020

Catherine Komugisha Tindiwensi, John C. Munene, Arthur Sserwanga, Ernest Abaho and Rebecca Namatovu-Dawa

This article investigates the relationship between farm management skills, entrepreneurial bricolage and market orientation in smallholder farms.

Abstract

Purpose

This article investigates the relationship between farm management skills, entrepreneurial bricolage and market orientation in smallholder farms.

Design/methodology/approach

The study used quantitative approaches to survey 378 smallholder farms in Uganda. Data were analysed using Structural Equation Modelling to establish the relationship between farm management skills, entrepreneurial bricolage and market orientation.

Findings

Farm management skills positively predict market orientation while entrepreneurial bricolage partially mediates the relationship between farm management skills and market orientation.

Research limitations/implications

The study utilized a survey design, which provides a cross-sectional view. Given that market orientation of smallholder farms can vary during the farm growth process, it becomes more informative to analyse how the independent and mediating variables cause a variation at different levels of market orientation.

Practical implications

Farm management training programmes that emphasize financial management skills and employ a household approach should be strengthened to enhance smallholder market orientation. Strategies for enhancing market orientation should also entail bricolage as a complementary behaviour to farm management.

Originality/value

We introduce entrepreneurial bricolage to the market orientation debate. The study brings alive the significance of entrepreneurial bricolage in smallholder farming. It also confirms the role of farm management skills in enhancing the market orientation of smallholder farms.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 10 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 31 December 2020

Haruhiko Iba and Apichaya Lilavanichakul

This study aims to identify the key drivers influencing the success of farmers who employ direct marketing at wholesale markets. The diversification of the distribution system in…

Abstract

Purpose

This study aims to identify the key drivers influencing the success of farmers who employ direct marketing at wholesale markets. The diversification of the distribution system in Thailand has created many challenges for farmers, with diversified farm businesses struggling to survive and to ensure profitability across channels. Direct marketing channels at wholesale markets provide farmers the opportunity to develop a new farm business division.

Design/methodology/approach

The study consists of qualitative and quantitative approaches. First, in-depth interviews with farmers were conducted, and selected case studies were employed to develop a research framework and design the questionnaire. Second, the questionnaire survey was conducted. Using factor analysis and logistic regression, farmers' data were studied to define the factors of success in direct marketing.

Findings

Three key drivers were examined and verified. The findings indicate that the development of direct marketing channels requires farmers to efficiently allocate family labour, possess negotiation skills and manage a farmer network. Particularly, the presence of negotiation skills coupled with digital technology can enable farmers to expand the market and build their network.

Research limitations/implications

Two marketing channels have been explored. However, more choices in marketing channels utilizing digital resources should be addressed in future research.

Originality/value

This is the first empirical study to define the drivers leading Thai farmers to continue employing a direct marketing channel.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 4 January 2022

Meine Pieter van Dijk, Gigi Limpens, Julius Gatune Kariuki and Diederik de Boer

This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone farmers”. To…

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Abstract

Purpose

This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone farmers”. To what extent do they benefit from an emerging ecosystem to support them in operating their farms, and what does that mean for the Hidden middle of agricultural value chains, the actors between the farmers and consumers? Unlocking the potential production of telephone farmers will require more services from collectors, traders, transport firms, the storage facilities, wholesalers and processing units and retailers. Ultimately, optimized telephone farm production benefits the business of Hidden middle value chain actors, increases incomes and jobs and improves food security.

Design/methodology/approach

Based on a survey and in-depth interviews a profile of the telephone farmers is given and their role as innovators is analyzed. The Latia Resource Centre (LRC) provides assistance to medium-size farmers, like the telephone farmers, helping them to prepare business plans and use modern technology and contributing to an emerging ecosystem providing support to all farmers.

Findings

The article analyzes the medium-size telephone farmers. It documents the contributions of this new agricultural actor to developing value chains and a dynamic ecosystem. The paper profiles the telephone farmers first and then identifies what they need and the support they receive. The emerging innovative ecosystem impacts agricultural productivity and production and hence the development of value chains. Small farmers gain access to opportunities offered by telephone farmers, working for them as outgrower or farm worker.

Research limitations/implications

The authors used a small sample of 51 farmers and covered only a two-year period.

Social implications

Small farmers are being helped through the emerging eco-system and farm labor acquire skills, which they can also you on another or their own farm.

Originality/value

Based on the analysis an even more effective ecosystem is suggested and policy recommendations are formulated before the conclusion is drawn that these medium-size farmers contribute to innovation diffusion, inclusive value chain development and food security and are becoming part of this expanding, innovative ecosystem. Following the debate on food security the results suggest to pay more attention to the development of telephone farmers given their role in developing agricultural value chains and innovative ecosystems.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 3
Type: Research Article
ISSN: 2044-0839

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: 8 November 2011

Joleen C. Hadrich and Frayne Olson

The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten‐year time period, or if alternative measures…

Abstract

Purpose

The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten‐year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance and how this correlation may change over time.

Design/methodology/approach

A confirmatory factor analysis was used to test the relative strength of farm size and performance indicator variables and estimate the relationship between farm size and performance latent variables. Data were collected from the North Dakota Farm and Ranch Business Management Association (NDFRBA) Annual Summaries for 2000‐2009.

Findings

Results demonstrated that a single indicator, such as acres or rate of return on assets, may not capture the array of farm size and farm performance concepts and multiple indicators should be used to jointly determine farm size and farm performance measures. Results also found a sequential decrease in correlation between farm size and performance for seven of the ten years.

Originality/value

This paper addresses the issue regarding multiple measures for farm size and farm performance which helps provide the framework to begin developing a systematic classification of farms for use in strategic farm planning and guide future government policies, federal farm programs, and environmental regulations.

Details

Agricultural Finance Review, vol. 71 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 5 May 2001

Ashok K. Mishra and Mitchell J. Morehart

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator…

Abstract

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator characteristics on the likelihood of off‐farm investment. Results suggest differences in level of education, age of the operator, off‐farm income, household net worth, leverage, farm size, farm diversification, management skills, and location influence off‐farm investment decisions.

Details

Agricultural Finance Review, vol. 61 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 19 November 2021

Florence Obiageli Ifeanyieze, Cosmas Ikechukwu Asogwa, Clara U. Nwankwo, Lilian Ukamaka Ekenta, Felicia Ngozi Ezebuiro, Godwin Emeka Eze, Francis Madueke Onu, Fredrick Chinedu Onah, Vincent Chidindu Asogwa, Edward Chidi Isiwu and Azunku Francis Nwangbo

Corporate organizations could enhance their economic and commercial values through knowledge acquisitions and exploitations. The purpose of this study is to analyze the economic…

Abstract

Purpose

Corporate organizations could enhance their economic and commercial values through knowledge acquisitions and exploitations. The purpose of this study is to analyze the economic and commercial performance effect of poultry management absorptive capacity in Nigeria.

Design/methodology/approach

Structural equation modeling was used in the analysis of a random sample of 300 poultry managers and owners surveyed within the South-Eastern Nigeria. The scales that quantified the latent variables of the factors were tested for reliability and consistency using confirmatory factor analysis.

Findings

The study found evidence that the difference between economically and commercially viable poultry businesses and failing ones depends on the level of absorptive capacity. Absorptive capacity advanced innovations that resulted in higher economic and commercial performance of poultry farm. Poultry firms' profitability, sales growth and market shares were positively increased by absorptive capacity dimensions of acquisition, assimilation, transformation and exploitation.

Research limitations/implications

The study was carried out within a region in Nigeria and thus could be limited by generalization to the developed country.

Originality/value

This study is the first to link four dimensions of absorptive capacity to the economic and commercial performance of poultry businesses in Nigeria. As such, it originally breaks new frontier of poultry farming from dynamic capabilities and absorptive capacity perspectives.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 13 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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

Article
Publication date: 5 May 2002

Cesar L. Escalante and Peter J. Barry

This study identifies key strategies employed by Illinois grain farms to prevent the erosion of their equity positions due to significant downturns in commodity prices during the…

Abstract

This study identifies key strategies employed by Illinois grain farms to prevent the erosion of their equity positions due to significant downturns in commodity prices during the implementation of the 1996 farm bill. The econometric results emphasize the collective importance of revenue enhancement, cost reduction, and capital management strategies. Nonfarm‐related strategies aimed at minimizing equity withdrawals through regulated family living expenditures, as well as supplementing low farm incomes with receipts from nonfarm employment and investments, significantly affect cost value equity growth rates. Moreover, significant financial and asset management strategies include those that minimize the costs of borrowing and maintain high asset productivity levels through elimination of excess farm capacity.

Article
Publication date: 3 September 2018

Asif Yaseen, Kim Bryceson and Anne Njeri Mungai

The purpose of this paper is to investigate the impact of market orientation (MO) on the major determinants of commercialization behavior among Sub-Saharan smallholders. The study…

Abstract

Purpose

The purpose of this paper is to investigate the impact of market orientation (MO) on the major determinants of commercialization behavior among Sub-Saharan smallholders. The study addresses the shortfalls in prior research on smallholder commercialization, which makes little difference between MO and market participation (MP).

Design/methodology/approach

The study reports on an empirical data set of 272 vegetable growers from Kiambu West District in Kenya and employs a partial least squares structural equation approach to test the hypotheses.

Findings

The results evidence that MO: fosters farmers’ ability to create value within commodity markets by capitalizing on market opportunities; changes the way in which farmers perceive the role of institution and infrastructure support and; and develops a drive for adopting business approach in farming operations.

Research limitations/implications

Fostering commercialization behavior among smallholders in Kenya requires implementing a two-pronged approach: improving MO to adopt business approach in farming operations; and facilitating MP at output level. The major limitation of this study is data collected only from high value vegetable producers in Kenya, signifying a need to include other agriculture produce across different Sub-Saharan countries.

Originality/value

Research on smallholder agriculture is replete with investigating institutional and technical constraints to make smallholders more productive, however, research on MO to adopt business approach in farming operations is scant. This study emphasizes that understanding MO, as a distinct and separate concept from MP, is vital for scaling up business approach among smallholder farmers.

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