The effect of management accounting practices and ICT on the efficiency of organic farms

Abstract

The contribution of organic farming to sustainability in its different environmental, economic, and societal facets underlines the importance of studying the viability of this type of farming and the factors that influence it. This work focuses on factors under farmers' control, particularly the use of two management tools, namely Management Accounting Practices (MAP) and Information and Communication Technologies (ICT). Using survey data from a sample of Spanish organic farms, we employ Data Envelopment Analysis (DEA) to measure efficiency and analyze its determinants. Our findings reveal that a higher intensity in the use of MAP and ICT is associated with improved farm efficiency and, therefore, contributes to their economic sustainability. The study also identifies additional factors affecting organic farm efficiency, notably diversification and direct marketing strategies.