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The importance of succession on business growth: A case study of family farms in Switzerland and Norway

Author

Listed:
  • Stefan Mann

    (Agroscope Research Station, Ettenhausen, Switzerland)

  • Klaus Mittenzwei

    (Norwegian Agricultural Economics Research Institute)

  • Franziska Hasselmann

    (Agroscope Research Station, Ettenhausen, Switzerland)

Abstract

This paper develops the hypothesis that the level of growth or decline of small family farms is strongly connected to the farms’ succession process. Around the process of intra-family succession, both disinvestment in cases of farm abandonment or conversion to part-time farming and investment activities in case of transfer to the next generation reach the highest levels. This hypothesis is confirmed for four different growth indicators using Swiss and Norwegian farm data for the period 2004 to 2009. Management strategy is another significant factor explaining business development, whereas growth and shrinking processes are accelerated by a high degree of specialization.

Suggested Citation

  • Stefan Mann & Klaus Mittenzwei & Franziska Hasselmann, 2013. "The importance of succession on business growth: A case study of family farms in Switzerland and Norway," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 109-137.
    • Handle: RePEc:cha:ysa001:v:6:y:2013:i:1:p:109-137
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    References listed on IDEAS

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    1. Shepherd, William G, 1972. "The Elements of Market Structure," The Review of Economics and Statistics, MIT Press, vol. 54(1), pages 25-37, February.
    2. Henk Kox & George Leeuwen & Henry Wiel, 2007. "Market Structure, Productivity and Scale in European Business Services," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 11, pages 195-212, Palgrave Macmillan.
    3. University of Western Australia, 1964. "Farm Policy," Farm Policy, University of Western Australia, Department of Agricultural Economics, vol. 4(3).
    4. Moreno-Pérez, Olga M. & Arnalte-Alegre, Eladio & Ortiz-Miranda, Dionisio, 2011. "Breaking down the growth of family farms: A case study of an intensive Mediterranean agriculture," Agricultural Systems, Elsevier, vol. 104(6), pages 500-511, July.
    5. Luis Rubalcaba & Henk Kox, 2007. "The Growth of European Business Services," Palgrave Macmillan Books, in: Luis Rubalcaba & Henk Kox (ed.), Business Services in European Economic Growth, chapter 1, pages 15-38, Palgrave Macmillan.
    6. Maury, Benjamin, 2006. "Family ownership and firm performance: Empirical evidence from Western European corporations," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 321-341, January.
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    Citations

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    Cited by:

    1. Bertoni, Danilo & Cavicchioli, Daniele & Latruffe, Laure, 2017. "Performance post succession on Italian family farms," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261435, European Association of Agricultural Economists.
    2. Manel Plana-Farran & José Luis Gallizo, 2021. "The Survival of Family Farms: Socioemotional Wealth (SEW) and Factors Affecting Intention to Continue the Business," Agriculture, MDPI, vol. 11(6), pages 1-16, June.
    3. Mann, Stefan & Stefan, Petrica, 2018. "Wine Farms between Specialisation and Diversification – Empirical Insights from Switzerland and Romania," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 67(3), September.
    4. Dengyan Ji & Xiaoping Shi & Xiaojuan Luo & Xianlei Ma, 2023. "The Impact of Intergenerational Inheritance on the Scale of Farmland Management in the Context of Aging: Evidence from Eastern China," Land, MDPI, vol. 12(8), pages 1-18, July.
    5. Bertoni, Danilo & Cavicchioli, Daniele & Latruffe, Laure, 2016. "Impact of succession on performance: The case of the Italian family farms," 149th Seminar, October 27-28, 2016, Rennes, France 245166, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Growth; Family Life Cycle; comparative research;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

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