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Determinants of competitive advantage for German food processors

Author

Listed:
  • Jan Schiefer

    (Institute for Food and Resource Economics (ILR), Nussallee 21, University of Bonn, 53115 Bonn, Germany)

  • Monika Hartmann

    (Institute for Food and Resource Economics (ILR), Nussallee 21, University of Bonn, 53115 Bonn, Germany)

Abstract

This article aims to explain the variation in firm performance in the German food processing industry. Building on the resource-based view, both drivers and outcomes of firm performance were defined as relative concepts. Performance was measured as relative return on assets and sales, relative change in sales, and by combining these variables into an integrated performance measure. Data for the analysis was gathered in an online firm survey and analyzed by means of nonparametric correlation and regression analysis. The survey response was very low and the sample may not be a good representation of the population. However, the results indicate that the main drivers for firm advantages lie within technology and production-related areas. They further suggest that with firm-specific variables, it is possible to explain as much as two-thirds of the variation in profitability. [Q130, L250, D240]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Jan Schiefer & Monika Hartmann, 2008. "Determinants of competitive advantage for German food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 306-319.
  • Handle: RePEc:wly:agribz:v:24:y:2008:i:3:p:306-319
    DOI: 10.1002/agr.20168
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    References listed on IDEAS

    as
    1. G. E. Brandow, 1969. "Market Power and Its Sources in the Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(1), pages 1-12.
    2. Morgan, Robert E. & Strong, Carolyn A., 2003. "Business performance and dimensions of strategic orientation," Journal of Business Research, Elsevier, vol. 56(3), pages 163-176, March.
    3. Clement E. Ward, 1990. "Meatpacking plant capacity and utilization: Implications for competition and pricing," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 65-73.
    4. Strandskov, Jesper, 1999. "Sources of competitive advantages and business performance within the European meat processing industry," MAPP Working Papers 63, University of Aarhus, Aarhus School of Business, The MAPP Centre.
    5. Philip Hans Franses & J.S. Cramer, 2010. "On the number of categories in an ordered regression model," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 64(1), pages 125-128.
    6. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    7. Christian Fischer & Sebastian Schornberg, 2007. "Assessing the competitiveness situation of EU food and drink manufacturing industries: An index-based approach," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 473-495.
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    Cited by:

    1. Carraresi, Laura & Mamaqi, Xhevrie & Albisu, Luis Miguel & Banterle, Alessandro, 2012. "Strategic Capabilities and Performance: An Application of Resource-Based View in Italian Food SMEs," 2012 International European Forum, February 13-17, 2012, Innsbruck-Igls, Austria 144955, International European Forum on Innovation and System Dynamics in Food Networks.
    2. Carraresi, Laura & Mamaqi, Xhevrie & Albisu, Luis Miguel & Banterle, Alessandro, 2011. "The Relationship Between Strategic Choices and Performance in Italian Food SMEs: A Resource-based Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114318, European Association of Agricultural Economists.

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