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The Relationship Between Strategic Choices and Performance in Italian Food SMEs: A Resource-based Approach

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  • Carraresi, Laura
  • Mamaqi, Xhevrie
  • Albisu, Luis Miguel
  • Banterle, Alessandro

Abstract

In the context of progressive rise of the competition among firms, due to the increasing globalisation, it is interesting to understand the potential sources of competitive advantage in order to set up a successful strategy. The theory of Resource-based View used in this framework examines the connection among internal resources and strategic choices, and how the latter affect firm performance. The firm strategy is determined by available resources and capabilities which are deployed to obtain a good performance. Therefore, strategic choices act in between resources and performance. The purpose of the paper is to evaluate the relationship between strategic choices and performance achieved by food SMEs, based on a set of distinctive resources. This approach is assessed in food SMEs located in Italy, by applying a Structural Equation Model. The results of the empirical analysis showed that, in the food sector, strategic choices based on innovation, product positioning, and chain relationship development have positive effects on performance, but only if distinctive resources and capabilities are considered. Innovation plays a capital role because of its direct as well as indirect effects.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114318.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114318

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Keywords: resource-based view; strategic choices; SMEs; food sector; structural equation modelL11; L25; L66; Q13; Agribusiness;

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  1. El-Agraa,Ali (ed.), 2007. "The European Union," Cambridge Books, Cambridge University Press, number 9780521874434, October.
  2. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
  3. Chenhall, Robert H., 2005. "Integrative strategic performance measurement systems, strategic alignment of manufacturing, learning and strategic outcomes: an exploratory study," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 395-422, July.
  4. Jan Schiefer & Monika Hartmann, 2008. "Determinants of competitive advantage for German food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 306-319.
  5. W. H. Furtan & J. Sauer, 2008. "Determinants of Food Industry Performance: Survey Data and Regressions for Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 555-573, 09.
  6. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
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