Sensemaking and financial management in the decisionmaking process of farmers
Hayden, Michael T., Mattimoe, RuthORCID: 0000-0003-3744-779X and Jack, LisaORCID: 0000-0001-9303-192X
(2021)
Sensemaking and financial management in the decisionmaking process of farmers.
Journal of Accounting and Organizational Change, 18
(4).
ISSN 1832-5912
Purpose – The purpose of this paper is to contribute to a better understanding of the financial decisionmaking
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.
Keywords: Sensemaking, Agriculture, Farm financial management, Farmer decision-making, Strategic decision-making, Operational decision-making