Asael Islas-Moreno, Manrrubio Muñoz-Rodríguez, Vinicio Horacio Santoyo-Cortés, Norman Aguilar-Gallegos, Enrique Genaro Martínez-González and Wyn Morris
This study analyses the sequence of actions carried out by successful enterprises in the agricultural sector and aims to understand the logic followed with such actions and the…
Abstract
Purpose
This study analyses the sequence of actions carried out by successful enterprises in the agricultural sector and aims to understand the logic followed with such actions and the differences related to the types of families that develop them.
Design/methodology/approach
Through a multiple case study approach, the business and family trajectories of 14 successful agricultural enterprises in Mexico were analysed. The actions carried out by enterprises are conceptualized as strategic movements and are classified into seven categories: (1) growth and intensification, (2) reconversion, (3) diversification, (4) integration, (5) differentiation, (6) outsourcing and (7) digitization. Depending on their relationship with agriculture, entrepreneurial families are classified into three categories: (1) continuing families, (2) returning families and (3) incoming families.
Findings
The entrepreneurship logic follows three stages: evaluation, expansion and consolidation, through which different activities are tested, then the one that produces the best results is expanded and adopted as the main activity, and finally the expansion of the main activity and its evaluation are combined by comparing and complementing it with other agricultural activities. The difference is that continuing families adhere more to the traditional productivist model based on growth in scale and improved productivity of primary production. On the other hand, actions that imply a distinction in the quality of production such as integration and differentiation and that require links with other organizations such as outsourcing are more frequently carried out by returning and incoming families.
Research limitations/implications
The findings obtained through case studies cannot be statistically generalized to a specific population, however, our perspective can be transferred to other cases to obtain analogous findings.
Originality/value
The study is a unique piece in terms of the analysis of how families with different degrees of proximity to agriculture develop successful enterprises.
Details
Keywords
Asael Islas-Moreno, Manrrubio Muñoz-Rodríguez, Vinicio Horacio Santoyo-Cortés, Enrique Genaro Martínez-González, Norman Aguilar-Gallegos and Wyn Morris
Little is known regarding triggers in the adoption of governance practices within family businesses. Enterprises can implement governance practices to avoid re-arising conflicts…
Abstract
Purpose
Little is known regarding triggers in the adoption of governance practices within family businesses. Enterprises can implement governance practices to avoid re-arising conflicts lived in the past. Moreover, the type of conflicts experienced can determine the order in which different types of governance practices are adopted, another issue that requires further investigation. To address these knowledge gaps, this study gathers evidence into how the adoption of governance practices is linked to the conflicts experienced in family businesses and how this adoption evolves.
Design/methodology/approach
A multiple case study was conducted with 15 family businesses in the agricultural sector. The conflicts experienced throughout the enterprises' trajectories and the governance practices adopted were analysed and classified according to their relationship with the family, business and ownership subsystems.
Findings
The study shows that there is no direct link between the conflicts experienced and the governance practices adopted in family businesses. The most recurrent conflicts have to do with the relationship between family and ownership; however, the adoption of governance practices is centred on the relationship between business and ownership. The practices that mediate the relationship between family and business are adopted second, and the practices that mediate the relationship between family and ownership are adopted last.
Originality/value
The study applies a classification of conflicts and governance practices that adjusts to the complexity of the family business. The research contributes to the field by providing an understanding of the integration of knowledge about the family business, governance systems and conflict.