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

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  • Abdala, Rafael Gonçalves
  • Binotto, Erlaine
  • Borges, João Augusto Rossi

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.

Suggested Citation

  • Abdala, Rafael Gonçalves & Binotto, Erlaine & Borges, João Augusto Rossi, 2022. "Family farm succession: evidence from absorptive capacity, social capital, and socioeconomic aspects," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(4), January.
    • Handle: RePEc:ags:revi24:341014
    DOI: 10.22004/ag.econ.341014
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    References listed on IDEAS

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    1. De Massis, Alfredo & Kotlar, Josip, 2014. "The case study method in family business research: Guidelines for qualitative scholarship," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 15-29.
    2. Morais, Manoela & Binotto, Erlaine & Borges, João Augusto Rossi, 2017. "Identifying beliefs underlying successors’ intention to take over the farm," Land Use Policy, Elsevier, vol. 68(C), pages 48-58.
    3. Facioni, Dejanira & Pereira, Matheus Wemerson Gomes, 2015. "Análise Dos Determinantes Da Sucessão Em Assentamento Rural No Estado De Mato Grosso Do Sul," Organizações Rurais e Agroindustriais/Rural and Agro-Industrial Organizations, Universidade Federal de Lavras, Departamento de Administracao e Economia, vol. 17(1), March.
    4. Costa, Fernando Luis Martins & Ralisch, Ricardo, 2013. "A Juventude Rural do Assentamento Florestan Fernandes no Município de Florestópolis (PR)," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 51(3), pages 1-18, September.
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