Goal Orientation and Quality Management Practices of Farm and Non-Farm Family Businesses

Abstract

Effective quality management requires setting appropriate goals for the firm. Quality management practices of small farm and non-farm family businesses are compared and a multi nomial logit model was used to analyze the choice of primary business goal by the firm owner. Business owners had the choice of five primary business goals: adequate financing, profit, a positive reputation with customers, long-term viability, or growth. We found statistically significant differences between farm and non-farm family businesses in quality management practices and in their choice of primary business goal. Farm family businesses reported a primary emphasis on financial record keeping in their quality management practices and reported profit as their primary business goal whereas non-farm businesses emphasized product and employee management and customer oriented goal preference.