Impact of the ‘Family-firm life cycle’ on the Management Processes Involved in Sustainable Glasshouse Horticulture

In Flanders glasshouse vegetables andornamental plants are typically produced at familybusinesses. At this type of businesses the objectives andlong-term firm developments are influenced by the socalled ‘family-firm life cycle’. In many cases the firmshows a life cycle that corresponds with the life cycle ofthe entrepreneur. The objective of the paper is to testthe hypothesis that the ‘family-firm life cycle’ will havean impact on the personal and business characteristics,objectives and the quality of the management processesinvolved in sustainable glasshouse horticulture. Assustainable horticulture integrates the three P’s (People,Planet, Profit) special attention is paid to humanresource, environmental and financial management.Data for the research are based on interviews andaccounting data at 138 glasshouse holdings situated inFlanders (northern part of Belgium). The results revealthat the glasshouse managers in the different phases ofthe ‘family-firm life cycle’ show significant differencesin age, education level and numbers of seminarsattended. The economic dimension, modernity ofdurable goods, solvency and investment pattern of thefirms in the different stages of the ‘family-firm life cycle’also show significant differences. At the older businessesthe availability of a successor has an importantinfluence. The results confirm the hypothesis that theobjectives and the quality of the management processesinvolved in environmental, human resource andfinancial management are dependent on the phase in the‘family-firm life cycle’. In the early stages firmmanagers are more ambitious and attach a higherimportance to the management processes involved insustainable development. In the later stages theavailability of a successor has an important influence.Unexpectedly no significant influence of the phase in the‘family-firm life cycle’ on the income obtained perfamilial labour unit is found. The insights derived fromthis research have important implications both forresearch and practice. They can enable glasshousegrowers and advisers to take and/or support correctdecisions and may help policy makers to differentiate onthe base of the ‘family-firm life cycle’.