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The relationship between resources, entrepreneurial orientation and performance in farm-based ventures

Author

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  • Jorunn Grande
  • Einar Lier Madsen
  • Odd Jarl Borch

Abstract

The purpose of this paper is to investigate how firm-specific resources and entrepreneurial orientation (EO) of the firm may influence performance in small farm-based ventures. It builds upon theoretical strands from the resource-based and entrepreneurship perspectives. Research within these fields indicates that these relationships might be dependent on the context within which the firm operates. Hypotheses are developed to test the possible effect of entrepreneurial efforts and resources (financial position, farm size, location, network and unique competence) on short- and long-term performance. Data gathered in 2003 and 2006 from farms engaged in innovative ventures were used to test the hypotheses. The results show that financial capacity, unique competence and entrepreneurial efforts influence performance in the investigated firms. This suggests that firms do get paid back in the long run for engaging in entrepreneurial efforts. Thus, entrepreneurial activities and attitudes represent an important factor enabling firms to create, reconsider and apply their resources in more efficient ways.

Suggested Citation

  • Jorunn Grande & Einar Lier Madsen & Odd Jarl Borch, 2009. "The relationship between resources, entrepreneurial orientation and performance in farm-based ventures," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(3-4), pages 89-111, April.
    • Handle: RePEc:taf:entreg:v:23:y:2009:i:3-4:p:89-111
    DOI: 10.1080/08985620903183710
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