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Actions with economic elements embedded in the social networks of Danish farmer investors abroad

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  • Luljeta Hajderllari

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    (Institute of Food and Resource Economics, University of Copenhagen)

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    Abstract

    The main aim of this paper is to investigate the “embeddedness” of business relationships with social relationships of Danish farmer investors (DFI) concerning agricultural investment and expansion abroad. A survey was sent to 61 DFIs with activities in Central and Eastern European countries who are members of an organisation named Danish Farmers Abroad. The survey elicited information regarding their organisational network connections to other DFIs who also have activities abroad. Information about the DFIs’ network was obtained regarding their business relationships (cooperation, competition and advice given and received to and from other DFIs) and social relationships (friendship). The data of the four different networks was analysed by the Double Dekker Semi-Partialling Multiple Regression Quadratic Assignment Procedure in UCINET. The results indicate that cooperation as well as received and given advice are positively related to social ties, whereas competition is negatively related to social ties. These results support the idea that business relationships (with the exception of competition) of DFIs are embedded in social relationships. This indicates that the same actors may behave less cooperatively in environments with low trust where they have to compete for scarce resources.

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    File URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2012/WP_2012_13_actions_embedded_social_networks.pdf
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    Bibliographic Info

    Paper provided by University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2012/13.

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    Length: 26 pages
    Date of creation: Oct 2012
    Date of revision:
    Handle: RePEc:foi:wpaper:2012_13

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    Web page: http://www.ifro.ku.dk/
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    Related research

    Keywords: Embeddedness; social network analysis; Danish farmer investors;

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    1. Hirschman, Albert O, 1982. "Rival Interpretations of Market Society: Civilizing, Destructive, or Feeble?," Journal of Economic Literature, American Economic Association, vol. 20(4), pages 1463-84, December.
    2. Luljeta Hajderllari & Kostas Karantininis & Ole Bonnichsen, 2012. "Danish Farmers and Investors: An analysis of reasons and motivations for increasing cross-border agricultural activities in Central and Eastern European countries," IFRO Working Paper 2012/10, University of Copenhagen, Department of Food and Resource Economics.
    3. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    4. Stephen P. Borgatti & Rob Cross, 2003. "A Relational View of Information Seeking and Learning in Social Networks," Management Science, INFORMS, vol. 49(4), pages 432-445, April.
    5. John H Dunning, 2009. "Location and the multinational enterprise: A neglected factor?," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 5-19, January.
    6. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
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