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Innovation and integration in the agri-food industry

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  • Karantininis, Kostas
  • Sauer, Johannes
  • Furtan, William Hartley

Abstract

We deal with the link between innovation and market structure using the empirical example of the Danish agri-food industry. Vertical integration may resolve hold-up problems and here we test for the importance of vertical integration and networks on innovation. We further examine the effects of network relationships on innovation behaviour. We use data from an extensive survey of 444 Danish firms over two years, 2000 and 2005 to estimate a bootstrapped zero-inflated Poisson regression model. The first and most significant result is that organization matters. Further we find that vertical integration as well as contractual arrangements are significant determinants for firms' innovation behaviour. The direction of integration is important as well. Also, economies of size seem to play an important role. Similarly, the export orientation of the firm is a significant determinant of innovation whereas the sector the firm is operating in is not significant for its innovation behaviour.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 35 (2010)
Issue (Month): 2 (April)
Pages: 112-120

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Handle: RePEc:eee:jfpoli:v:35:y:2010:i:2:p:112-120

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Web page: http://www.elsevier.com/locate/foodpol

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Keywords: Innovation Market structure Networks Vertical integration Food industry;

References

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Citations

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Cited by:
  1. Tamini, Lota Dabio, 2012. "Optimal quality choice under uncertainty on market development," Working Papers 148589, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
  2. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2013. "Explaining the determinants of on-farm diversification: The case Study of Tuscany Region," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149903, Italian Association of Agricultural and Applied Economics (AIEAA).
  3. Dries, Liesbeth & Pascucci, Stefano & Török, Ãron & Tóth, József, 2014. "Keeping Your Secrets Public? Open Versus Closed Innovation Processes in the Hungarian Wine Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(1).
  4. Briones, Roehlano M., 2013. "The Structure of Agricultural Trade Industry in Developing Countries," Discussion Papers DP 2013-15, Philippine Institute for Development Studies.
  5. Michaela Trippl, 2011. "Low-Tech Innovation in a High-Tech Environment? The Food Industry in the Metropolitan Region of Vienna," ERSA conference papers ersa10p133, European Regional Science Association.
  6. Maumbe, Blessing M. & Brown, Cheryl, 2013. "Entrepreneurial and Buyer-Driven Local Wine Supply Chains: Case Study of Acres of Land Winery in Kentucky," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 16(1).
  7. Jozsef Toth & Liesbeth Dries & Stefano Pascucci, 2012. "Open Innovation Characters of the Hungarian wine Industry," MIC 2012: Managing Transformation with Creativity; Proceedings of the 13th International Conference, Budapest, 22–24 November 2012 [Selected Papers], University of Primorska, Faculty of Management Koper.
  8. Bartolini, Fabio & Latruffe, Laure & Viaggi, Davide, 2011. "Assessing the effect of the CAP on farm innovation adoption. An analysis in two French regions," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99594, European Association of Agricultural Economists.
  9. Dries, Liesbeth & Pascucci, Stefano & Torok, Aron & Toth, Jozsef, 2012. "Open innovation in the Hungarian wine sector," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135785, European Association of Agricultural Economists.
  10. József TÓTH, 2013. "Trust – Networking – Innovation," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 510-519, November.

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