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Determinants of competitive advantage for German food processors

  • 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)

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    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.

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    File URL: http://hdl.handle.net/10.1002/agr.20168
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 24 (2008)
    Issue (Month): 3 ()
    Pages: 306-319

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    Handle: RePEc:wly:agribz:v:24:y:2008:i:3:p:306-319
    Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. 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.
    2. 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.
    3. 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.
    4. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
    5. Franses, Ph.H.B.F. & Cramer, J.S., 2002. "On the number of categories in an ordered regression model," Econometric Institute Research Papers EI 2002-15, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    6. 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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