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Open Access
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 and…

3202

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

Open Access
Article
Publication date: 15 October 2020

Rike Stotten

By examining a case study in Tyrol, Austria, the paper aims to demonstrate the role of farm diversification and the influence of the peasants’ habitus on social-ecological…

2009

Abstract

Purpose

By examining a case study in Tyrol, Austria, the paper aims to demonstrate the role of farm diversification and the influence of the peasants’ habitus on social-ecological resilience.

Design/methodology/approach

Drawing on a field study conducted in two remote villages of the Ötztal valley, Austrian Alps, this study provides insights into the interplay of tourism and farming and its impact on farm resilience. Qualitative narrative interviews, the so-called farm biographies, served to investigate these issues. Interpretations of data are based on qualitative content analysis.

Findings

The results highlight that farming and tourism are highly enmeshed in the case study area and that the additional income creates room for manoeuvre for the farms to activate their adaptive capability. At the same time, peasant values guide the farming activities. The farms in this study demonstrate a strong farm resilience that is enabled by farm diversification and rooted in their peasant habitus. This positively affects the social-ecological resilience.

Originality/value

In contrast to other studies, which have mainly applied the concepts of social or community resilience to investigate the resilience and vulnerability of rural areas, this study highlights the resilience of farms in mountain areas.

Details

International Journal of Social Economics, vol. 48 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

Open Access
Book part
Publication date: 14 December 2023

Susanne Kalss

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries…

Abstract

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries to shift and contribute assets to the successors, whereas corporate law focuses on the well-being of the company. However, in a family business, it is necessary to find legal, social, and psychological techniques to combine these two areas and to establish strong and binding relations. This is the function of shareholder agreements and family constitutions.

Details

Family Firms and Family Constitution
Type: Book
ISBN: 978-1-83797-200-5

Keywords

Content available
Article
Publication date: 22 April 2022

Jeffrey W. Hopkins

700

Abstract

Details

Agricultural Finance Review, vol. 82 no. 3
Type: Research Article
ISSN: 0002-1466

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: 4 July 2020

Anita Zehrer and Gabriela Leiß

This paper aims to explore the pertinent issues, barriers and pitfalls of intergenerational communication in business families during their leadership succession period.

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Abstract

Purpose

This paper aims to explore the pertinent issues, barriers and pitfalls of intergenerational communication in business families during their leadership succession period.

Design/methodology/approach

Building on relational leadership theory, the paper makes use of an action research approach using a qualitative single case study to investigate communication barriers and pitfalls in business transition.

Findings

Through action research, interventions were taken in the underlying case, which increased the consciousness, as well as the personal and social competencies of the business family. Thus, business families stuck in ambivalent entanglement understand their underlying motives and needs within the change process, get into closer contact with their emotional barriers and communication hindrances, which is a prerequisite for any change, and break the succession iceberg phenomenon.

Research limitations/implications

Future research should undertake multiple case studies to validate and/or modify the qualitative methods used in this action research to increase the validity and generalizability of the findings.

Practical implications

Given the large number of business families in transition, our study shows the beneficial effects action research might have on business families’ communication behavior along a change process. The findings might help other business families to understand the value of action research for such underlying challenges and decrease communication barriers.

Originality/value

This is one of the few studies to have addressed intergenerational communication of business families using an action research approach.

Details

Corporate Communications: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1356-3289

Keywords

Open Access
Article
Publication date: 26 January 2024

Qingmeng Tong, Shan Ran, Xuan Liu, Lu Zhang and Junbiao Zhang

The main purpose of this study is to examine the impact of agricultural internet information (AII) acquisition on climate-resilient variety adoption among rice farmers in the…

Abstract

Purpose

The main purpose of this study is to examine the impact of agricultural internet information (AII) acquisition on climate-resilient variety adoption among rice farmers in the Jianghan Plain region of China. Additionally, it explores the influencing channels involved in this process.

Design/methodology/approach

Based on survey data for 877 rice farmers from 10 counties in the Jianghan Plain, China, this paper used an econometric approach to estimate the impact of AII acquisition on farmers’ adoption of climate-resilient varieties. A recursive bivariate Probit model was used to address endogeneity issues and obtain accurate estimates. Furthermore, three main influencing mechanisms were proposed and tested, which are broadening information channels, enhancing social interactions and improving agricultural skills.

Findings

The results show that acquiring AII can overall enhance the likelihood of farmers adopting climate-resilient varieties by 36.8%. The three influencing channels are empirically confirmed. Besides, educational attainment, income and peer effects can facilitate farmers’ acquisition of AII, while climate conditions and age significantly influence the adoption of climate-resilient varieties.

Practical implications

Practical recommendations are put forward to help farmers build climate resilience, including investing in rural internet infrastructures, enhancing farmers’ digital literacy and promoting the dissemination of climate-resilient information through diverse internet platforms.

Originality/value

Strengthening climate resilience is essential for sustaining the livelihoods of farmers and ensuring national food security; however, the role of internet information has received limited attention. To the best of the authors’ knowledge, this study is the first to examine the casual relationship between internet information and climate resilience, which fills the research gap.

Details

International Journal of Climate Change Strategies and Management, vol. 16 no. 1
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 12 September 2022

Mariasole Bannò, Giorgia Maria D'Allura, Emilia Filippi and Sandro Trento

This study examines the propensity to innovate in automation of family firms (FFs) based on the socio-emotional wealth (SEW) perspective.

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Abstract

Purpose

This study examines the propensity to innovate in automation of family firms (FFs) based on the socio-emotional wealth (SEW) perspective.

Design/methodology/approach

This study’s analysis is based on three aspects. First, the authors consider three main non-economic goals and priorities of FFs: the family’s relationship with employees (read as to care for their satisfaction and well-being); the inner pride of building and maintaining the family and firm image and reputation; and the inner feeling to be socially responsible. Second, the authors consider how these goals and priorities vary among FFs according to four dimensions: family ownership, the presence of family members on the board of directors, the involvement of young successors, and the presence of founding and later generations. Finally, the consequences of automation are considered: lower firm employment, lower employees’ satisfaction and well-being, and higher firm productivity. The analysis is based on a sample of 4,150 Italian firms.

Findings

The analysis revealed that FFs are less prone to innovate in automation than non-FFs. Specifically, family ownership, the presence of family members on the board of directors, and the presence of founding generation are negatively associated with innovation in automation. Instead, the involvement of young successors and the presence of later generation are positively associated with innovation in automation.

Originality/value

To the authors’ knowledge, this study is the first investigation that, based on SEW, examines how FFs act on the decision to innovate in automation, thereby providing empirical evidence.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

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

Open Access
Article
Publication date: 15 August 2023

Juan David Cortes, Jonathan E. Jackson and Andres Felipe Cortes

Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business…

Abstract

Purpose

Despite the abundance of small-scale farms in the USA and their importance for both rural economic development and food availability, the extensive research on small business management and entrepreneurship has mostly neglected the agricultural context, leaving many of these farms' business challenges unexplored. The authors focus on informing a specific decision faced by small farm managers: selling directly to consumers (i.e. farmer's markets) versus selling through aggregators. By collecting historical data and a series of interviews with industry experts, the authors employ simulation methodology to offer a framework that advises how small-scale farmers can allocate their product across these two channels to increase revenue in a given season. The results, which are relevant for operations management, small business management and entrepreneurship literature, can help small-scale farmers improve their performance and compete against their larger counterparts.

Design/methodology/approach

The authors rely on historical and interview data from key industry players (an aggregator and a small farm manager) to design a simulation analysis that determines which factors influence season-long farm revenue performance under varying strategies of channel allocation and commodity production.

Findings

The model suggests that farm managers should plan to evenly split their production between the two distribution channels, but if an even split is not possible, they should plan to keep a larger percentage in the nonaggregator (farmers' market/direct) channel. Further, the authors find that farmers can benefit significantly from a strong aggregator channel customer base, which suggests that farmers should promote and advertise the aggregator channel even if they only use it for a limited amount of their product.

Originality/value

The authors integrate small business management and operations management literature to study a widely understudied context and present practical implications for the performance of small-scale farms.

Details

New England Journal of Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2574-8904

Keywords

1 – 10 of 88