Perceived environmental uncertainty in Dutch dairy farming: The effect of external farm context on strategic choice |
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| Institution: | 1. Urology Section, Surgery Department, Veterans Administration Caribbean Healthcare System and University of Puerto Rico Medical Sciences Campus, San Juan, Puerto Rico;2. Department of Biostatistics and Bioinformatics, Duke University School of Medicine, Durham, NC;3. Urology Section, Veterans Affairs Medical Center Durham, Durham, NC;4. Department of Biology and Cancer Research Program, Julius L. Chambers Biomedical/Biotechnology Research Institute, North Carolina Central University Durham, NC;5. Department of Biological Sciences, Center for Human Health and the Environment, North Carolina State University, Raleigh, NC;6. Division of Urology, Department of Surgery, Samuel Oschin Comprehensive Cancer Institute, Cedars-Sinai Medical Center, Los Angeles, CA;1. Department of Chemistry, Himachal Pradesh, University, Shimla 171005, India;2. School of Basic and Applied Sciences, K.R. Mangalam University, Gurgaon 122103, India;3. Department of Chemistry, Faculty of Sciences and Arts, Najran University, Najran University, Najran 11001, Saudi Arabia;1. Institute of Evolutionary Biology and Environmental Studies, University of Zurich, Winterthurerstrasse 190, 8057 Zurich, Switzerland;2. School of Animal, Plant and Environmental Sciences, University of the Witwatersrand, Johannesburg, South Africa;3. Université de Strasbourg, IPHC-DEPE, 23 rue Becquerel, 67087 Strasbourg, France;4. CNRS, UMR7178, 67087 Strasbourg, France;5. Department of Psychology, University of California, Davis, CA 95616, USA |
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| Abstract: | This paper explores the way in which dairy farmers perceive their environment (PE), i.e., the external context of their farm, and the uncertainty (PEU) this poses to them. The environment is defined using the STEP concept (society, technology, economy and politics) and Porter’s five forces model. The relationship between the perception of the external farm environment and the strategy farmers choose for their farm is quantified to gain insight into the effect of the external farm environment on decision-making. Data from a survey of 103 Dutch dairy farmers was analyzed using regression analysis. The results indicate that environmental uncertainty is not related to complexity or dynamism, but to the illiberality (i.e., intolerance, hostility) of the external farm environment. The institutional environment is considered especially illiberal, thus causing high uncertainty. Farmers with high PEU are more likely to choose a diversification strategy, while low perceived uncertainty results in a process-control strategy for the farm. A growth strategy is not affected by perceived environmental uncertainty. The PE and PEU approach is new in agricultural research and shows that the farmer’s view on the external environment is a key issue for decision-making on farms The significant relationship between the perceived uncertainty caused by the external farm environment and farm strategies shows that to get a good understanding of the farm, farming system boundaries should be expanded to incorporate the effect of the external farm environment on decision making. Reduction of uncertainty will enhance decision-making because instead of farming within an uncertain context, risk management practices can be used. |
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