What Causes Finnish Family Farmers Feel Successful? The Role of Resources and Entrepreneurial Characteristics

Abstract

This study investigates the influences of resources and entrepreneurial characteristics on perceived success in family farms using the Resource-Based Theory and Entrepreneurial Orientation perspectives. Resources and entrepreneurial orientation are used to identify success perceptions. Confirmatory factor analysis and structural equation modelling were applied to the survey data of 805 Finnish family farmers. Family farmers rate their skills as good, and their abilities of proactiveness and self-realization success as high. The results suggest that both resources and entrepreneurial orientation affect the perceived success of family farmers, although the role of entrepreneurial orientation is relatively small. Co-variability between resources and entrepreneurial orientation is positive, addressing the change towards the same direction. This study promotes the understanding of the family perspective and its role in the successful use of resources and entrepreneurial capabilities in farming and offers a developed construct for family farm business research.

Keywords

• family farms, entrepreneurship, resource utilization, perceptions, success, Finland