An embeddedness perspective on family farm development in the Carpathian Mountains

Abstract

Romanian farming is characterized by fragmented land, high age of operating farmers and low productivity that raises the question of barriers and necessities for consolidation, development and succession. This study explores the development trajectories of smallholder farming in the Romanian counties of Cluj and Maramureș using the concepts of embeddedness (as outlined in the framework of global production networks) and the resource-based view. It aims to understand the interplay of framework conditions with the way how smallholders mobilize different types of resources. Conceptually, the study shows that the resource-based view should be applied within wider contexts: Aspects of societal and network embeddedness (including prevalent mistrust, informality in governing land and misaligned regulative incentives) favour high reliance on family for resource mobilization and hinder consolidation, succession and innovation. While commonalities with post-socialist countries exist, several structural factors are unique to Romania.