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Multiple business ownership in the Norwegian farm sector: resource transfer and performance consequences

Alsos, G. and Carter, S.L. (2006) Multiple business ownership in the Norwegian farm sector: resource transfer and performance consequences. Journal of Rural Studies, 22 (3). pp. 313-322. ISSN 0743-0167

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Abstract

This paper examines the case of multiple business ownership in the Norwegian farming sector, focusing on the extent of resource transfer between farms and their newly created ventures and the subsequent effects on the performance of these new ventures. The results demonstrate that substantial resource transfer takes place, mediated both by the resource richness of the farm and the degree of similarity in the activities of the farm and the new venture. The results also demonstrate a complex relationship between resource transfer and the performance (measured in terms of profitability) of the new venture. The transfer of physical resources tends to enhance, while the transfer of organizational and knowledge-based resources tends to reduce, new venture performance.