Factors influencing the strategic decision to further develop dairy production — A study of farmers in central Sweden

This article presents results from a study of the factors underlying the strategic decision of 313 dairy farmers in central Sweden to further develop their milk production. Using a structural equation modelling methodology, four categories of factors – the decision structure, the farm's business structure, the cognitive structure of the farmer, and the farm's network structure – have been individually analyzed, and are each found to explain the plan to further develop the farm's milk production, as opposed to continuing without further development or exiting production. These results are an important step toward developing an integrated model of strategic decision-making, where the resources and capabilities of the farm business lead the firm to its development plans.