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Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework

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  • Vera Sadovska

    (Department of Work Science, Business Economics and Environmental Psychology, Swedish University of Agricultural Sciences, 230 53 Alnarp, Sweden)

  • Lena Ekelund Axelson

    (Department of Work Science, Business Economics and Environmental Psychology, Swedish University of Agricultural Sciences, 230 53 Alnarp, Sweden)

  • Cecilia Mark-Herbert

    (Department of Forest Economics, Swedish University of Agricultural Sciences, 750 07 Uppsala, Sweden)

Abstract

Creation of business value is a major objective of any enterprise, but the way in which value is created and its consequences call for re-evaluation in response to current sustainability goals. The agricultural sector serves basic human needs, but its systems and methods for production, processing, and consumption often pose challenges to sustainable development. To address these challenges, this study consolidated value-creating factors identified in a systematic literature review into nine clusters: collaboration, communication, knowledge, production, diversification, entrepreneurism, funding, policies, and inclusiveness. These clusters were analyzed with a Triple Bottom Line framework where financial, environmental, and social dimensions are part of sustainable development. The analysis revealed that agricultural enterprises pursue business activities in a near-term perspective, with few having strategies for long-term activities such as innovativeness, knowledge acquisition, and collaboration with external stakeholders. These findings highlight the complexity in creation of sustainable business value and call for further investigation of how value is conceptualized in the agricultural sector. Re-thinking value creation in the sector should consider why value is created, for whom, the time perspective in which value is assessed, and the aspects given weight in the assessment.

Suggested Citation

  • Vera Sadovska & Lena Ekelund Axelson & Cecilia Mark-Herbert, 2020. "Reviewing Value Creation in Agriculture—A Conceptual Analysis and a New Framework," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:5021-:d:373678
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