Hayden, Michael and Mattimoe, Ruth and Jack, Lisa (2022) Sensemaking and financial management in the decision-making process of farmers. Journal of Accounting and Organizational Change, 18 (4). pp. 529-552. ISSN 1832-5912

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Abstract

Purpose: The purpose of this paper is to contribute to a better understanding of the financial decision-making process of farmers and to highlight the potential role that improved farm financial management (FFM) could play in developing sustainable farm enterprises. Design/methodology/approach: This paper adopts a qualitative approach with 27 semi-structured interviews exploring farmers’ financial decision-making processes. Subsequently, the interview findings were presented to a focus group. Sensemaking theory is adopted as a theoretical lens to develop the empirical findings. Findings: The evidence highlights that FFM has a dual role to play in farmer decision-making. Some FFM activities may act as a cue, which triggers a sensebreaking activity, causing the farmer to enter a process of sensemaking whilst some/other FFM activities are drawn upon to provide a sensegiving role in the sensemaking process. The role of FFM in farmer decision-making is strongly influenced by the decision type (strategic or operational) being undertaken and the farm type (dairy, tillage or beef) in operation. Originality/value: The literature suggests that the majority of farmers spend little time on financial management. However, there are farmers who have quite a high level of engagement in FFM activities, when undertaking strategic farm expansion decisions. Those FFM activities help them to navigate through operational decision-making and to make sense of their strategic decision-making.

Item Type:	Article
Keywords:	Sensemaking; Agriculture; Farm financial management; Farmer decision-making; Strategic decision-making; Operational decision-making;
Academic Unit:	Faculty of Social Sciences > School of Business
Item ID:	17840
Identification Number:	https://doi.org/10.1108/JAOC-11-2020-0186
Depositing User:	Michael Hayden
Date Deposited:	15 Nov 2023 12:11
Journal or Publication Title:	Journal of Accounting and Organizational Change
Publisher:	Emerald
Refereed:	Yes
URI:	Publisher
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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