The Relationship Between Strategic Choices and Performance in Italian Food SMEs: A Resource-based Approach
AbstractIn 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 InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114318.
Date of creation: 2011
Date of revision:
resource-based view; strategic choices; SMEs; food sector; structural equation modelL11; L25; L66; Q13; Agribusiness;
Find related papers by JEL classification:
- str - - - - - -
- equ - - - - - -
- mod - - - - - -
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-BEC-2011-10-15 (Business Economics)
- NEP-CSE-2011-10-15 (Economics of Strategic Management)
- NEP-SBM-2011-10-15 (Small Business Management)
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