[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ags/aareaj/161975.html
   My bibliography  Save this article

Modelling the origins of managerial ability in agricultural production

Author

Listed:
  • Nuthall, Peter
Abstract
The efficiency of production from a farm’s land, labour and capital is critically dependent on the ability of the farm manager. Yet, while there are studies correlating a wide range of manager-related variables with returns, and, therefore, probably ability, little understanding of the basic determinants of managerial ability exists. Questions such as ‘what is the importance of a farmer’s family experiences and training in determining the farmer’s managerial ability?’ need answering. The solution to this, and other, questions will enable determining ways of improving farmers’ inherent ability developed both in early, and later, life. In that most decisions on a farm are made intuitively, in contrast to the use of a formal analysis, improving farmers’ inherent ability will have a significant payoff. The research reported here uses data from a large stratified random survey of 740 developed farmers (29 per centhadtertiary education,30per centhad4ormoreyears secondary education) to create a structural equation model of the determinants of managerial ability. The results suggest that a farmer’s exposure to experiences is a significant factor in ability, as is the farmer’s management style and the family influence on early life experience.

Suggested Citation

  • Nuthall, Peter, 2009. "Modelling the origins of managerial ability in agricultural production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-24.
    • Handle: RePEc:ags:aareaj:161975
    DOI: 10.22004/ag.econ.161975
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/161975/files/j.1467-8489.2009.00459.x.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.161975?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dhungana, Basanta R. & Nuthall, Peter L. & Nartea, Gilbert V., 2004. "Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 1-23.
    2. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305, September.
    3. Cameron, Donald & Chamala, Shankariah, 2002. "Measuring Impacts of an Holistic Farm Business Management Training Program," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7006, International Farm Management Association.
    4. Wayne H. Howard & George L. Brinkman & Remy Lambert, 1997. "Thinking Styles and Financial Characteristics of Selected Canadian Farm Managers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 45(1), pages 39-49, March.
    5. Solano, C. & Leon, H. & Perez, E. & Tole, L. & Fawcett, R.H. & Herrero, M., 2006. "Using farmer decision-making profiles and managerial capacity as predictors of farm management and performance in Costa Rican dairy farms," Agricultural Systems, Elsevier, vol. 88(2-3), pages 395-428, June.
    6. Carin W. Rougoor & Ger Trip & Ruud B.M. Huirnc & Jan A. Renkema, 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, International Association of Agricultural Economists, vol. 18(3), pages 261-272, May.
    7. Austin, E.J & Willock, J & Deary, I.J & Gibson, G.J & Dent, J.B & Edwards-Jones, G & Morgan, O & Grieve, R & Sutherland, A, 1998. "Empirical models of farmer behaviour using psychological, social and economic variables. Part I: linear modelling," Agricultural Systems, Elsevier, vol. 58(2), pages 203-224, October.
    8. Nuthall, P.L., 2006. "Determining the important management skill competencies: The case of family farm business in New Zealand," Agricultural Systems, Elsevier, vol. 88(2-3), pages 429-450, June.
    9. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    10. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tu, Vo Hong & Kopp, Steven W. & Trang, Nguyen Thuy & Hong, Nguyen Bich & Yabe, Mitsuyasu, 2021. "Land accumulation: An option for improving technical and environmental efficiencies of rice production in the Vietnamese Mekong Delta," Land Use Policy, Elsevier, vol. 108(C).
    2. Nguyen, Thi Bao Ngoc & Lin, Li-Feng & Su, Xuan-Qi & Yu, Jui-Hung, 2021. "Does Managerial Education Matter for Credit Risk? Evidence from Taiwan," Finance Research Letters, Elsevier, vol. 41(C).
    3. Westbrooke, Victoria & Nuthall, Peter, 2017. "Why small farms persist? The influence of farmers’ characteristics on farm growth and development. The case of smaller dairy farmers in NZ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), October.
    4. Kenneth Yung & Chen Chen, 2018. "Managerial ability and firm risk-taking behavior," Review of Quantitative Finance and Accounting, Springer, vol. 51(4), pages 1005-1032, November.
    5. Eric T. Micheels & Hamish R. Gow, 2015. "The Effect of Market Orientation on Learning, Innovativeness, and Performance in Primary Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 209-233, June.
    6. Puspita Ghaniy Anggraini & Mahfud Sholihin, 2023. "What do we know about managerial ability? A systematic literature review," Management Review Quarterly, Springer, vol. 73(1), pages 1-30, February.
    7. Shukla, Sumedha & Arora, Gaurav, 2022. "A rank similarity test for quantile treatment effects in conjunction with propensity score matching: An application to crop yield impacts of agricultural credit," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322569, Agricultural and Applied Economics Association.
    8. Thomas P. Triebs & Subal C. Kumbhakar, 2018. "Management in production: from unobserved to observed," Journal of Productivity Analysis, Springer, vol. 49(2), pages 111-121, June.
    9. Mamiit, Rusyan Jill & Yanagida, John & Villanueva, Donald, 2020. "Farm locations and dwelling clusters: Do they make production and technical efficiency spatially contagious?," Food Policy, Elsevier, vol. 92(C).
    10. Micheels, Eric T., 2013. "PR - Experience, Learning, And Innovativness In Beef Production: Results From A Cluster Analysis," 19th Congress, Warsaw, Poland, 2013 345685, International Farm Management Association.
    11. Rafay Waseem & Gershom Endelani Mwalupaso & Faria Waseem & Humayoon Khan & Ghulam Mustafa Panhwar & Yangyan Shi, 2020. "Adoption of Sustainable Agriculture Practices in Banana Farm Production: A Study from the Sindh Region of Pakistan," IJERPH, MDPI, vol. 17(10), pages 1-14, May.
    12. Nuthall, Peter L., 2012. "The intuitive world of farmers – The case of grazing management systems and experts," Agricultural Systems, Elsevier, vol. 107(C), pages 65-73.
    13. Takeshima, Hiroyuki & Kishore, Avinash & Kumar, Anjani, 2024. "Climate shocks and fertilizer responses: Field-level evidence for rice production in Bangladesh," 2024 Annual Meeting, July 28-30, New Orleans, LA 343591, Agricultural and Applied Economics Association.
    14. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2012. "Determinants of technical efficiency in beef cattle production in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125853, International Association of Agricultural Economists.
    15. Vo Hong Tu & Nguyen Duy Can & Yoshifumi Takahashi & Steven W. Kopp & Mitsuyasu Yabe, 2019. "Technical and environmental efficiency of eco-friendly rice production in the upstream region of the Vietnamese Mekong delta," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2401-2424, October.
    16. Bezaiet Dessalegn & Woinishet Asnake & Abiro Tigabie & Quang Bao Le, 2022. "Challenges to Adoption of Improved Legume Varieties: A Gendered Perspective," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    17. Thomas Triebs & Subal C. Kumbhakar, 2012. "Management Practice in Production," ifo Working Paper Series 129, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Nuthall, 2009. "Modelling the origins of managerial ability in agricultural production ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 413-436, July.
    2. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
    3. Nuthall, Peter L., 1999. "Managerial Ability (The Forgotten Resource) Its Assessment And Modification," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 124495, Australian Agricultural and Resource Economics Society.
    4. Pham, Huong Dien & Waibel, Hermann, 2018. "Risk attitudes, knowledge, skills and agricultural productivity," TVSEP Working Papers wp-007, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    5. Daneluz, Marina & Canever, Mario Duarte & Lima, Helenice González de & Bermudes, Rogerio Folha & Menezes, Gabrielito Rauter, 2022. "Linking entrepreneurial orientation and managerial capacity to performance in dairy farms," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(3), January.
    6. de Koeijer, T. J. & Wossink, G. A. A. & Smit, A. B. & Janssens, S. R. M. & Renkema, J. A. & Struik, P. C., 2003. "Assessment of the quality of farmers' environmental management and its effects on resource use efficiency: a Dutch case study," Agricultural Systems, Elsevier, vol. 78(1), pages 85-103, October.
    7. Nuthall, P. L., 2001. "Managerial ability -- a review of its basis and potential improvement using psychological concepts," Agricultural Economics, Blackwell, vol. 24(3), pages 247-262, March.
    8. Eastwood, C.R. & Chapman, D.F. & Paine, M.S., 2012. "Networks of practice for co-construction of agricultural decision support systems: Case studies of precision dairy farms in Australia," Agricultural Systems, Elsevier, vol. 108(C), pages 10-18.
    9. Trip, G. & Thijssen, G. J. & Renkema, J. A. & Huirne, R. B. M., 2002. "Measuring managerial efficiency: the case of commercial greenhouse growers," Agricultural Economics, Blackwell, vol. 27(2), pages 175-181, August.
    10. Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.
    11. Sanjaya DeSilva, 2000. "Skills, Partnerships and Tenancy in Sri Lankan Rice Farms," Working Papers 819, Economic Growth Center, Yale University.
    12. Nordin, Martin & Hojgard, Soren, 2015. "Advisory services for nutrient utilisation," 2015 Conference, August 9-14, 2015, Milan, Italy 212586, International Association of Agricultural Economists.
    13. de Souza Filho, Hildo Meirelles & Carrer, Marcelo José & Saes, Maria Sylvia Macchione & Gomes, Leonardo Augusto de Vasconcelos & Nicolella, Alexandre Chibebe, 2019. "Performance heterogeneity and strategic orientation: An analysis of small farmers of an agrarian reform project in Brazil," Land Use Policy, Elsevier, vol. 86(C), pages 23-30.
    14. Bezlepkina, Irina V. & Huirne, Ruud B.M. & Oude Lansink, Alfons G.J.M. & Oskam, Arie J., 2005. "Analysing Variation in Russian Dairy Farms, 1990-2001," 94th Seminar, April 9-10, 2005, Ashford, UK 24444, European Association of Agricultural Economists.
    15. Adhikari, Arun & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46830, Southern Agricultural Economics Association.
    16. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    17. Birhanu Addisu Adamie & Helena Hansson, 2022. "Rationalising inefficiency in dairy production: evidence from an over-time approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(2), pages 433-471.
    18. N'cho, Simon Akahoua & Mourits, Monique & Demont, Matty & Adegbola, Patrice Y. & Lansink, Alfons Oude, 2017. "Impact of infestation by parasitic weeds on rice farmers’ productivity and technical efficiency in sub-Saharan Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 12(1), March.
    19. Kjesbu, Erland & Flaten, Ola, 2005. "Perceptions and Impacts of FRAM-A: A Norwegian Farm Business Development Programme," 15th Congress, Campinas SP, Brazil, August 14-19, 2005 24294, International Farm Management Association.
    20. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, vol. 30(3), pages 241-250, May.

    More about this item

    Keywords

    Agribusiness; Farm Management;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aareaj:161975. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.