The influence of values on strategic choices: The choice of organic milk production by Swedish farmers

Abstract

Previous studies of the influence of values on the decision making of farmers have treated the choice process as a black box. This study is focused on information collection, information analysis, planning action(s), choice of action and taking responsibility by farmers, using the choice of organic milk production as a case. A hypothetical model was constructed using survey data and structural equation modelling. Economic values were important, but farmers had also other significant value orientations. The study demonstrates that values have an important influence, not in evaluating consequences, but in other parts of the decision-making process. The values affected the way of processing data to information, paying attention to information and forecasting consequences, which all preceded and, thus, successively directed the choice of options. Values also affected the implementation of the choice. These findings are important in order to understand and predict farmers’ decisions and support their management.

Keywords:

• Behaviour
• decision-making process
• descriptive
• farm management
• structural equation modelling
• LISREL

Acknowledgements

The article is based on results from the PhD thesis by Lunneryd (2003).