Strategic Capabilities and Performance: An Application of Resource-Based View in Italian Food SMEs
The characteristics of the EU and Italian food market, dominated by evolving regulations, rise of new emerging countries, globalisation, advances in ICT and technology sector, increase of retailers’ bargaining power, and changes in consumer patterns, affect especially SMEs, which are forced to develop successful strategies in order to survive on the market. Thus, it is useful to understand the potential sources of competitive advantage for SMEs. Following the theoretical model of Resource-based View, we analysed the effect of SME capabilities on performance, by identifying the significant ones playing a leading role to reach a competitive advantage. In particular, four capabilities have been selected, according to literature: innovation, marketing, network, and acquiring information. The analysis is carried out in 67 food SMEs located in Lombardy, a Northern Italian region, by applying a Structural Equation Model. The results revealed that marketing, network and innovation capabilities positively affect the performance. In particular, process innovation should be exploited in SMEs to act incremental innovations. Moreover, adopting appropriate pricing policies and operating a right consumer targeting help SMEs in perform well, also if they spend time in acquiring information about the market and the other agents of the supply chain. Strong vertical relationships, besides facilitating the information flow, allow SMEs to control each stage of the chain and to monitor the quality level of products.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.fooddynamics.org/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zhongfeng Su & En Xie & Dong Wang & Yuan Li, 2011. "Entrepreneurial strategy making, resources, and firm performance: evidence from China," Small Business Economics, Springer, vol. 36(2), pages 235-247, February.
- Jan Schiefer & Monika Hartmann, 2008. "Determinants of competitive advantage for German food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 24(3), pages 306-319.
- Pontus Braunerhjelm & Zoltan Acs & David Audretsch & Bo Carlsson, 2010. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Small Business Economics, Springer, vol. 34(2), pages 105-125, February.
- Karl-Heinz Leitner & Stefan Güldenberg, 2010. "Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs," Small Business Economics, Springer, vol. 35(2), pages 169-189, September.
- Lee, Ruby P. & Naylor, Gillian & Chen, Qimei, 2011. "Linking customer resources to firm success: The role of marketing program implementation," Journal of Business Research, Elsevier, vol. 64(4), pages 394-400, April.
- Azevedo, Susana & Ferreira, João, 2007. "The Linkage Between Lis And Rbv For Sustained Competitive Advantage: An Integrated Conceptual Model," MPRA Paper 5648, University Library of Munich, Germany.
- David Hughes, 2009. "European Food Marketing: Understanding Consumer Wants - The Starting Point in Adding Value to Basic Food Products," EuroChoices, The Agricultural Economics Society, vol. 8(3), pages 06-13, December.
- Ruth Rama, 1996. "Empirical study on sources of innovation in international food and beverage industry," Agribusiness, John Wiley & Sons, Ltd., vol. 12(2), pages 123-134.
- Jo H.M. Wijnands & Harry J. Bremmers & Bernd M.J. van der Meulen & Krijn J. Poppe, 2008. "An economic and legal assessment of the EU food industry's competitiveness," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 417-439.
When requesting a correction, please mention this item's handle: RePEc:ags:iefi12:144955. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.