IDEAS home Printed from https://ideas.repec.org/a/spr/agfoec/v5y2017i1d10.1186_s40100-017-0079-8.html
   My bibliography  Save this article

Competitive strategies among Ontario farms marketing direct to consumers

Author

Listed:
  • Eric T. Micheels

    (University of Saskatchewan)

  • Andreas Boecker

    (University of Guelph)

Abstract

This paper examines the importance of two resources, namely a market orientation and an entrepreneurial orientation, in new product development and satisfaction with firm performance among direct and alternative marketers. Using a partial least squares structural equation model and data from a 2013 survey, this paper models the effect of a market orientation and entrepreneurial orientation on satisfaction with current performance and expected future performance for agricultural firms in Ontario, Canada. Our results show that a market orientation and entrepreneurial orientation are important factors in determining rates of product and marketing innovations among farm-based agribusinesses. These findings further demonstrate that a market orientation is a powerful resource as it enables firms to become aware of opportunities to provide superior value for consumers, especially when operating in non-traditional markets.

Suggested Citation

  • Eric T. Micheels & Andreas Boecker, 2017. "Competitive strategies among Ontario farms marketing direct to consumers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-23, December.
  • Handle: RePEc:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0079-8
    DOI: 10.1186/s40100-017-0079-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40100-017-0079-8
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1186/s40100-017-0079-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sun, Lin & Gómez, Miguel I. & Chaddad, Fabio R. & Ross, R. Brent, 2014. "Distribution Channel Choices of Wineries in Emerging Cool Climate Regions," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-17, April.
    2. Dawn Thilmany & Craig A. Bond & Jennifer K. Bond, 2008. "Going Local: Exploring Consumer Behavior and Motivations for Direct Food Purchases," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1303-1309.
    3. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    4. Mary Beckie & Emily Kennedy & Hannah Wittman, 2012. "Scaling up alternative food networks: farmers’ markets and the role of clustering in western Canada," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(3), pages 333-345, September.
    5. Michael Boehlje & Jay Akridge & Dave Downey, 1995. "Restructuring agribusiness for the 21st century," Agribusiness, John Wiley & Sons, Ltd., vol. 11(6), pages 493-500.
    6. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    7. Kim, Man-Keun & Curtis, Kynda R. & Yeager, Irvin, 2014. "An Assessment of Market Strategies for Small-Scale Produce Growers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(3), pages 1-18, September.
    8. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    9. Giada Di Stefano & Alfonso Gambardella & Gianmario Verona, 2012. "Technology Push and Demand Pull Perspectives in Innovation Studies: Current Findings and Future Research Directions," Post-Print hal-00696607, HAL.
    10. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(1), pages 1-19, April.
    11. Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    12. Tajeddini, Kayhan, 2010. "Effect of customer orientation and entrepreneurial orientation on innovativeness: Evidence from the hotel industry in Switzerland," Tourism Management, Elsevier, vol. 31(2), pages 221-231.
    13. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    14. Hansen, John D. & Deitz, George D. & Tokman, Mert & Marino, Louis D. & Weaver, K. Mark, 2011. "Cross-national invariance of the entrepreneurial orientation scale," Journal of Business Venturing, Elsevier, vol. 26(1), pages 61-78, January.
    15. Moser, Riccarda & Raffaelli, Roberta & Thilmany, Dawn D., 2011. "Consumer Preferences for Fruit and Vegetables with Credence-Based Attributes: A Review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(2), pages 1-22, May.
    16. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    17. Pérez-Luño, Ana & Wiklund, Johan & Cabrera, Ramón Valle, 2011. "The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption," Journal of Business Venturing, Elsevier, vol. 26(5), pages 555-571, September.
    18. Raj V. Mahto & Peter S. Davis & John A. Pearce II & Richard B. Robinson Jr., 2010. "Satisfaction with Firm Performance in Family Businesses," Entrepreneurship Theory and Practice, , vol. 34(5), pages 985-1002, September.
    19. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    20. Roucan-Kane, Maud & Gray, Allan W. & Boehlje, Michael, 2011. "Approaches for Selecting Product Innovation Projects in U.S. Food and Agribusiness Companies," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-18, November.
    21. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    22. Monecke, Armin & Leisch, Friedrich, 2012. "semPLS: Structural Equation Modeling Using Partial Least Squares," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i03).
    23. Wuyang Hu & Marvin T. Batte & Timothy Woods & Stan Ernst, 2012. "Consumer preferences for local production and other value-added label claims for a processed food product," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(3), pages 489-510, July.
    24. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    25. repec:taf:entreg:v:23:y:2011:i:3-4:p:89-111 is not listed on IDEAS
    26. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    27. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    28. Di Stefano, Giada & Gambardella, Alfonso & Verona, Gianmario, 2012. "Technology push and demand pull perspectives in innovation studies: Current findings and future research directions," Research Policy, Elsevier, vol. 41(8), pages 1283-1295.
    29. Low, Sarah A. & Vogel, Stephen J., 2011. "Direct and Intermediated Marketing of Local Foods in the United States," Economic Research Report 118025, United States Department of Agriculture, Economic Research Service.
    30. Köhler, Christian & Sofka, Wolfgang & Grimpe, Christoph, 2012. "Selective search, sectoral patterns, and the impact on product innovation performance," Research Policy, Elsevier, vol. 41(8), pages 1344-1356.
    31. John Hulland, 1999. "Use of partial least squares (PLS) in strategic management research: a review of four recent studies," Strategic Management Journal, Wiley Blackwell, vol. 20(2), pages 195-204, February.
    32. John Cranfield & Spencer Henson & Jose Blandon, 2012. "The Effect of Attitudinal and Sociodemographic Factors on the Likelihood of Buying Locally Produced Food," Agribusiness, John Wiley & Sons, Ltd., vol. 28(2), pages 205-221, March.
    33. Mirzaei, Omid & Micheels, Eric T. & Boecker, Andreas, 2016. "Product and Marketing Innovation in Farm-Based Businesses: The Role of Entrepreneurial Orientation and Market Orientation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-32, May.
    34. Anis Ben Brik & Belaid Rettab & Kamel Mellahi, 2011. "Market Orientation, Corporate Social Responsibility, and Business Performance," Journal of Business Ethics, Springer, vol. 99(3), pages 307-324, March.
    35. Ashok, Mona & Narula, Rajneesh & Martinez-Noya, Andrea, 2016. "How do collaboration and investments in knowledge management affect process innovation in services?," MERIT Working Papers 039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    36. Hun Lee & Ken G. Smith & Curtis M. Grimm & August Schomburg, 2000. "Timing, order and durability of new product advantages with imitation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 23-30, January.
    37. Phil Mount, 2012. "Growing local food: scale and local food systems governance," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(1), pages 107-121, March.
    38. Nadella, Karthik & Deaton, Brady & Lawley, Chad & Weersink, Alfons, 2014. "Do farmers treat rented land differently than the land they own? A fixed effects model of farmer’s decision to adopt conservation practices on owned and rented land," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170633, Agricultural and Applied Economics Association.
    39. Evelien Lambrecht & Nicole Taragola & Bianka Kühne & Maarten Crivits & Xavier Gellynck, 2015. "Networking and innovation within the ornamental plant sector," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-20, December.
    40. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    41. Sun, Lin & Gómez, Miguel I. & Chaddad, Fabio R. & Ross, R. Brent, 2014. "Distribution Channel Choices of Wineries in Emerging Cool Climate Regions," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(1), pages 87-103, April.
    42. William Knudson & Allen Wysocki & Joseph Champagne & H. Christopher Peterson, 2004. "Entrepreneurship and Innovation in the Agri-Food System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1330-1336.
    43. C. C. De Lauwere, 2005. "The role of agricultural entrepreneurship in Dutch agriculture of today," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 229-238, September.
    44. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    45. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shingo Yoshida & Hironori Yagi, 2021. "Long-Term Development of Urban Agriculture: Resilience and Sustainability of Farmers Facing the Covid-19 Pandemic in Japan," Sustainability, MDPI, vol. 13(8), pages 1-23, April.
    2. Ronaldo Tavares Souza, 2020. "Box-scheme as alternative food network—the economic integration between consumers and producers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-25, December.
    3. Sagit Barel-Shaked, 2023. "Network-based business model in the agri-food sector: A case study of Green Fingers," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(4), pages 162-170.
    4. Lucia Baldi & Danilo Bertoni & Giuseppina Migliore & Massimo Peri, 2019. "How alternative food networks work in a metropolitan area? An analysis of Solidarity Purchase Groups in Northern Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tomasz Ingram & Katarzyna Bratnicka-Myśliwiec & Teresa Kraśnicka & Izabella Steinerowska-Streb, 2022. "Entrepreneurial Orientation as a Determinant of Sustainable Performance in Polish Family and Non-Family Organizations," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    2. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    3. Tobias Kollmann & Christoph Stöckmann, 2014. "Filling the Entrepreneurial Orientation–Performance Gap: The Mediating Effects of Exploratory and Exploitative Innovations," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1001-1026, September.
    4. Galina Shirokova & Karina Bogatyreva & Tatiana Beliaeva, 2015. "Entrepreneurial Orientation of Russian Firms: The Role of External Environment," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 9(3), pages 6-25.
    5. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    6. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    7. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    8. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    9. Elena Patricia Mojica-Carrillo & Gonzalo Maldonado-Guzmán & Sandra Yesenia Pinzón-Castro & Angie Lorena Riaño-Castillo, 2021. "Effects of Entrepreneurial Orientation on Performance and Growth: Are Microenterprises and Small Firms Equal?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 11(4), pages 1-2.
    10. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    11. Haibin Yang & Gregory G. Dess & James A. Robins, 2019. "Does entrepreneurial orientation always pay off? The role of resource mobilization within and across organizations," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 565-591, September.
    12. Mirzaei, Omid & Micheels, Eric T. & Boecker, Andreas, 2016. "Product and Marketing Innovation in Farm-Based Businesses: The Role of Entrepreneurial Orientation and Market Orientation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-32, May.
    13. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    14. S. Arunachalam & Sridhar N. Ramaswami & Pol Herrmann & Doug Walker, 2018. "Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 744-766, July.
    15. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    16. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 0. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    17. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 2017. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 427-463, June.
    18. Rodney C. Runyan & Baoshan Ge & Baobao Dong & Jane L. Swinney, 2012. "Entrepreneurial Orientation in Cross–Cultural Research: Assessing Measurement Invariance in the Construct," Entrepreneurship Theory and Practice, , vol. 36(4), pages 819-836, July.
    19. Jelle Schepers & Wim Voordeckers & Tensie Steijvers & Eddy Laveren, 2014. "The entrepreneurial orientation–performance relationship in private family firms: the moderating role of socioemotional wealth," Small Business Economics, Springer, vol. 43(1), pages 39-55, June.
    20. Unai Arzubiaga & Txomin Iturralde & Amaia Maseda & Josip Kotlar, 2018. "Entrepreneurial orientation and firm performance in family SMEs: the moderating effects of family, women, and strategic involvement in the board of directors," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 217-244, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:agfoec:v:5:y:2017:i:1:d:10.1186_s40100-017-0079-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.