Family farm succession: evidence from absorptive capacity, social capital, and socioeconomic aspects

Rafael Gonçalves Abdala,João Augusto Rossi Borges,Erlaine Binotto

doi:10.1590/1806-9479.2021.235777

Rafael Gonçalves Abdala, João Augusto Rossi Borges + Show 1 more

Open Access

https://doi.org/10.1590/1806-9479.2021.235777

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Abstract

Abstract Farm succession is a process socially built from the preparation of the successor and the farm to meet a family business’ expectations. This study aimed to identify how social capital, absorptive capacity, and socioeconomic characteristics influence farm succession. The survey was conducted sampling 82 soybean and corn Brazilian farmers. The questionnaire measured socioeconomic characteristics, Absorptive Capacity (AC), and Social Capital (SC). To test the influence of AC, SC, and socioeconomic characteristics on farm succession, Spearman correlation coefficient (rs) was performed. Results showed that the absorptive capacity can influence farm succession through acquisition, assimilation, use, and transformation of external knowledge into decision making, supporting the definition of successors. Results also suggested that social capital plays an important role to form relationship networks, stimulating discussions, and supporting the designation of successors. The socioeconomic characteristics ‘percentage of family income from the farm, participation in courses and lectures, and being a cooperatives member’ also presented a significant positive correlation with farm succession. Issues related to the capacity to absorb external knowledge, social and symbolic capital and generational transference can be fundamental in the continuity of the family farming business.

Highlights

Farm succession is a process socially built including the preparation of the successor, in addition to the farm, to meet a family business’ expectation
In managerial transitions at organizational contexts, symbolic capital is visible when there is resistance from current managers to transfer the leadership to new successors, especially when the personal effort dedicated to working is associated with identity and self-esteem
The social capital and absorptive capacity can influence farm succession in addition to socioeconomic characteristics related to the farmer, his family, and farm (Bertoni & Cavicchioli, 2016a)

Summary

Introduction

Farm succession is a process socially built including the preparation of the successor, in addition to the farm, to meet a family business’ expectation. The social capital and absorptive capacity can influence farm succession in addition to socioeconomic characteristics related to the farmer, his family, and farm (Bertoni & Cavicchioli, 2016a). Absorptive capacity studies allow organizations to be open to knowledge, assimilation of new information, exploration of innovations, and provide advances (Cohen & Levinthal, 1990; Zahra & George, 2002). The relationships, structure, influence, and information contribute to the formation of individuals and groups well informed for decision making and positioning according to changes (Adler & Kwon, 2002), including the agricultural sector (Narayan & Pritchett, 1999). These factors are the control variables, identified in the center of Figure 1

Method

Results and Discussion

Succession Discussion The family discusses the

Descriptive Analysis of Absorptive Capacity and Social Capital

Correlations

Final Considerations Limitations and further research opportunities