The Family Farm Business? Insights into Family, Business and Ownership Dimensions of Open‐Farms

2007 ◽  
Vol 26 (3) ◽  
pp. 357-374 ◽  
Author(s):  
Lesley‐Ann Wilson
Keyword(s):  
Family Business ◽  
Family Farm ◽  
The Family ◽  
Farm Business ◽  
Family Farm Business

scholarly journals Sustaining the Family Business With Minimal Financial Rewards

2013 ◽  
Vol 28 (2) ◽  
pp. 163-177 ◽  
Author(s):  
Jane L. Glover ◽  
Trish Reay
Keyword(s):  
Decision Making ◽  
Comparative Study ◽  
Family Business ◽  
Dairy Farms ◽  
Family Farm ◽  
Family Needs ◽  
Economic Returns ◽  
The United Kingdom ◽  
Strategic Behaviors ◽  
The Family

We engaged in a multicase comparative study exploring how family farm businesses continue when economic returns are minimal. We analyzed strategic approaches used by 20 family dairy farms operating in the United Kingdom and identified four different strategic behaviors chosen by the family farm businesses—diversifying the business, maximizing debt, sacrificing family needs, and compromising. Each strategy allows the firm to survive, but has consequences for the family, the business, or both. Our study contributes to the socioemotional wealth literature by showing how emotional attachment to the business can influence firm decision making.

Socioemotional wealth in the family farm

2015 ◽  
Vol 75 (3) ◽  
pp. 403-415 ◽  
Author(s):  
Jonathan B Dressler ◽  
Loren Tauer
Keyword(s):  
Family Member ◽  
Family Business ◽  
Research Literature ◽  
Lower Amount ◽  
Farm Income ◽  
Family Farm ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family

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.

scholarly journals Keeping the farm business in the family: the case of farm and non-farm family businesses in the midwestern United States

2021 ◽  
pp. 1-14
Author(s):  
Edeoba W. Edobor ◽  
Renee D. Wiatt ◽  
Maria I. Marshall
Keyword(s):  
Family Business ◽  
Succession Planning ◽  
Family Businesses ◽  
Full Sample ◽  
Medium Scale ◽  
The Family ◽  
Transfer Readiness ◽  
Using Data ◽  
Farm Business ◽  
Critical Aspects

Succession planning is a very crucial aspect of family business continuity. The successful transition of family businesses is especially important for small and medium scale family businesses which constitute the beginning phase of most businesses. This paper explores two critical aspects of succession planning, namely the decision to keep business ownership within the family and the transfer-readiness of family businesses. This study assessed potential correlates of these two constructs using data from small and medium scale farm and non-farm businesses in Midwest US. Results from a probit estimator showed that farm businesses were more likely to be kept within the family (P<0.01). For the full sample, the number of generations involved in daily management, the readiness of the senior management to delegate control, and the owner experience were found to be good correlates of the decision to keep the business within the family. For farms, we also found some correlation between the perception of the business as being successful and the decision to keep the business in the family (P<0.1). Results from the probit and bivariate probit models showed that capital and the number of generations in management are the most consistent correlates of transfer-readiness for the full and farm samples. Finally, we found that female owners of farm businesses were less likely to be ready for business transfers than their male counterparts (P<0.01).

Human Resources in the Family Business

2016 ◽  
Author(s):  
David Ransburg ◽  
Wendy Sage-Hayward ◽  
Amy M. Schuman
Keyword(s):  
Human Resources ◽  
Family Business ◽  
The Family

Making gender visible in family business: past and present

2012 ◽  
Vol 13 (1) ◽  
Author(s):  
Paloma Fernández Pérez ◽  
Eleanor Hamilton
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Business Leadership ◽  
Legal Rules ◽  
Developed Economies ◽  
The Family ◽  
Interdisciplinary Synthesis ◽  
Complex Forms ◽  
Rules Of The Game

This  study  contributes  to  developing  our understanding of gender and family business. It draws on studies from the business history and management literatures and provides an interdisciplinary synthesis. It illuminates the role of women and their participation in the entrepreneurial practices of the family and the business. Leadership is introduced as a concept to examine the roles of women and men in family firms, arguing that concepts used  by  historians or economists like ownership and management have served to make women ‘invisible’, at least in western developed economies in which owners and managers have been historically due to legal rules  of  the  game  men,  and  minoritarily women. Finally, it explores gender relations and  the  notion  that  leadership  in  family business  may  take  complex  forms  crafte within constantly changing relationships.

Informalitas Dalam Formalitas: Sebuah Kajian Budaya Organisasi Perusahaan Keluarga

2018 ◽  
Vol 3 (2) ◽  
pp. 200
Author(s):  
Hardiyanti Munsi ◽  
Ahmad Ismail
Keyword(s):  
Cultural Values ◽  
Family Business ◽  
Participant Observation ◽  
National Level ◽  
Ideal Types ◽  
The Family ◽  
Formal Organizations ◽  
Religious Aspects ◽  
Depth Interviews ◽  
Big Men

This article intends to identify and to describe the unique structure and the managing style that owns primordial characteristics, that is giving significance to kinship, religion, and local Bugis cultural values, which made up the cultural system of PT. Hadji Kalla family business. Theoritically, this research was inspired from Weberian perspective on the ideal types of bureaucracy, that observes organizations (in this case is the family business) as one of the socio-cultural phenomena which is neutral and value-free, that is place aside its subjective aspects. The research was conducted in two locations, the head office and one of the branch offices using qualitative approach that relies on participant observation, in-depth interviews, and literature studies. The results of the research shows that the family business of PT. Hadji Kalla that has advanced into national level still prioritizes kinship, ethnicity, and religious aspects in the daily activities of the company. The value even take parts in providing the company’s colour to the urban societies in various districts where the company stands. This means that although the society has undergone transformations, it doesn’t mean that the primordial value, and the elements that exist outside of businesses (such as kinship, big men, religion, cultural values, and interest) do not influence the activities that are held in formal organizations. Therefore, the interventions of subjective aspects will always appear, followed with the application of the modern management system that is implemented by PT. Hadji Kalla company.

The effects of goals attainment on CEO-owner satisfaction and the role of family involvement

2019 ◽  
Vol 10 (2) ◽  
pp. 116-127
Author(s):  
Ondřej Machek ◽  
Jiří Hnilica
Keyword(s):  
Family Involvement ◽  
Family Business ◽  
Firm Value ◽  
Family Firms ◽  
Hierarchical Regression ◽  
Content Type ◽  
Business Goals ◽  
Growth Increase ◽  
The Family ◽  
Owner Satisfaction

Purpose The purpose of this paper is to examine how the satisfaction with economic and non-economic goals achievement is related to the overall satisfaction with the business of the CEO-owner, and whether family involvement moderates this relationship. Design/methodology/approach Based on a survey among 323 CEO-owners of family and non-family businesses operating in the Czech Republic, the authors employ the OLS hierarchical regression analysis and test the moderating effects of family involvement on the relationship between the satisfaction with different goals attainment and the overall satisfaction with the business. Findings The main finding is that family and non-family CEO-owner’s satisfaction does not differ significantly when economic goals (profit maximisation, sales growth, increase in market share or firm value) and firm-oriented non-economic goals (satisfaction of employees, corporate reputation) are being achieved; both classes of goals increase the overall satisfaction with the firm and the family involvement does not strengthen this relationship. However, when it comes to external non-economic goals related to the society or environment, there is a significant and positive moderating effect of family involvement. Originality/value The study contributes to the family business literature. First, to date, most of the studies focused on family business goals have been qualitative, thus not allowing for generalisation of findings. Second, there is a lack of evidence on the ways in which family firms integrate their financial and non-financial goals. Third, the authors contribute to the literature on the determinants of personal satisfaction with the business for CEOs, which has been the focus on a relatively scarce number of studies.

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