IDEAS home Printed from https://ideas.repec.org/p/ags/eaae98/10053.html
   My bibliography  Save this paper

Farmers' strategies in globalization markets: Empirical results from Germany

Author

Listed:
  • Inderhees, Philipp
  • Theuvsen, Ludwig

Abstract

Today the European agrofood sector is increasingly confronted with the threats as well as the opportunities of liberalizing markets. Therefore, competitiveness on global markets is becoming of paramount importance for European farmers. The challenges of global markets are accompanied by a growing array of new developments in farmers' economic and political environments, such as accelerating structural changes in the farm and agribusiness sectors, a new EU agricultural policy (decoupling and cross- compliance) and new market opportunities due to the breakthrough of renewable energies. In this paper we deal with strategic decision- making by German farmers who are confronted with new threats and opportunities. We develop a theoretical framework of strategic farm management based on the differentiation between different levels of strategic management, namely corporate, competitive, functional, and cooperative strategies. We present the results of a large- scale empirical study in the German state of North Rhine- Westphalia. The empirical results show that farmers employ a broad spectrum of corporate, competitive, functional and cooperative strategies to reposition their farms in the face of changing economic and political environments. Factor analysis reveals five dominant strategic factors and cluster analysis five strategic groups in the region under survey. The results of the study allow farmers to benchmark their farms and to identify strategic gaps in the face of globalizing markets.

Suggested Citation

  • Inderhees, Philipp & Theuvsen, Ludwig, 2006. "Farmers' strategies in globalization markets: Empirical results from Germany," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10053, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae98:10053
    DOI: 10.22004/ag.econ.10053
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/10053/files/sp06in01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.10053?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 241-261.
    2. Brian L. Buhr, 2004. "Case Studies of Direct Marketing Value-Added Pork Products in a Commodity Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 266-279.
    3. Herink, Michael & Petersen, Volker, 2004. "Clusteranalyse als Instrument zur Gruppierung von spezialisierten Marktfruchtunternehmen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 53(07), pages 1-6.
    4. Dermot J. Hayes & Sergio H. Lence & Andrea Stoppa, 2004. "Farmer-owned brands?," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 269-285.
    5. Brian L. Buhr, 2004. "Case Studies of Direct Marketing Value-Added Pork Products in a Commodity Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 266-279.
    6. Fraser McLeay & Sandra Martin & Tony Zwart, 1996. "Farm business marketing behavior and strategic groups in agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 339-351.
    7. Leask, Graham & Parnell, John A., 2005. "Integrating Strategic Groups and the Resource Based Perspective:: Understanding the Competitive Process," European Management Journal, Elsevier, vol. 23(4), pages 458-470, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Theuvsen, Ludwig & Heyder, Matthias & Niederhut-Bollmann, Christoph, 2010. "Does Strategic Group Membership Affect Firm Performance? An Analysis of the German Brewing Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-16, June.
    2. Theuvsen, Ludwig & Heyder, Matthias & Niederhut-Bollmann, Christoph, 2010. "Does Strategic Group Membership Affect Firm Performance? An Analysis of the German Brewing Industry," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(2).
    3. Brent Hueth & Maro Ibarburu & James Kliebenstein, 2007. "Marketing Specialty Hogs: A Comparative Analysis of Two Firms from Iowa," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 720-733.
    4. W. H. Furtan & J. Sauer, 2008. "Determinants of Food Industry Performance: Survey Data and Regressions for Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 555-573, September.
    5. Furtan, H. & Sauer, J., 2009. "Determinants of Food Industry Performance – Survey Data and Regressions for Denmark," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.
    6. Antonio Gozzi & Roberta Scarsi & Riccardo Spinelli, 2015. "Un?analisi dei raggruppamenti strategici nella fornitura di servizi logistici," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(2), pages 231-257.
    7. Paudel, Krishna P. & Park, Timothy A. & Pandit, Mahesh, 2017. "U.S. Farmers' Decision to Choose Direct Sales Channel: A Fractional Seemingly Unrelated Semiparametric Model," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258370, Agricultural and Applied Economics Association.
    8. Chang-Yang Lee & Ji-Hwan Lee & Ajai S. Gaur, 2017. "Are large business groups conducive to industry innovation? The moderating role of technological appropriability," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 313-337, June.
    9. Silk Alvin J. & Berndt Ernst R., 2004. "Holding Company Cost Economies in the Global Advertising and Marketing Services Business," Review of Marketing Science, De Gruyter, vol. 2(1), pages 1-51, June.
    10. Faouzi Bensebaa, 2003. "La dynamique concurrentielle:défis analytiques et méthodologiques," Revue Finance Contrôle Stratégie, revues.org, vol. 6(1), pages 5-37, March.
    11. Hałaj, Grzegorz & Żochowski, Dawid, 2006. "Strategic groups in Polish banking sector and financial stability," MPRA Paper 326, University Library of Munich, Germany.
    12. Jackie Krafft & Isabelle Nicolaï, 1995. "Commitment Procedures In R&D Investments : An Examination Of Different Varieties," Post-Print hal-01799270, HAL.
    13. Chang, Sungyong & Kim, Hyunseob & Song, Jaeyong & Lee, Keun, 2021. "Dynamics of Imitation versus Innovation in Technological Leadership Change: Latecomers’ Catch-up Strategies in Diverse Technological Regimes," SocArXiv b8fae, Center for Open Science.
    14. Raquel Ortega-Argilés & Rosina Moreno, 2005. "Firm Competitive Strategies And The Likelihood Of Survival - The Spanish Case," ERSA conference papers ersa05p347, European Regional Science Association.
    15. Carroll, Charles, 1998. "Interdependence and the social structure of rivalry," Research Report 98B24, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    16. Luís Cabral, 2018. "We’re Number 1: Price Wars for Market Share Leadership," Management Science, INFORMS, vol. 64(5), pages 2013-2030, May.
    17. Ding, John Y., 1993. "Toward a Framework for Analyzing Multimarket Contact and Multinational Competition," Occasional Papers 233154, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    18. K. Ramakrishnan, 2010. "Business Strategy versus Performance Trade-offs," Global Business Review, International Management Institute, vol. 11(3), pages 317-331, October.
    19. Thomaz Teodorovicz & Tainá Leandro & Luiz Alberto Esteves, 2016. "The Evolution Of A Methodology For Relevant Market Definition: An Analysis Of Cade'S Jurisprudence On Private Higher Educational Markets," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 137, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Gillen, David W. & Oum, Tae H. & Tretheway, Michael W., 2020. "Entry Barriers and Anti-Competitive Behaviour in a Deregulated Canadian Airline Market," Papers 305967, Canadian Transportation Research Forum (CTRF).

    More about this item

    Keywords

    Farm Management; Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:eaae98:10053. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.