Articles
INCENTIVES TO INNOVATION AND STRATEGIC CHANGE: AN ANALYSIS OF DUTCH HORTICULTURE AND ARABLE FARMING
Article number
536_26
Pages
231 – 238
Language
Abstract
Innovation processes in agriculture have been mainly analyzed by diffusion and adoption studies.
Innovation however presupposes an underlying problem.
The innovation process induced by problem detection remains largely out of consideration in those studies.
Moreover, innovation is not the only way of solving problems.
Important economic and political problems can also be circumvented by strategic adaptation like emigration and change of main production activity.
For instance, low product prices in the early nineties forced some tomato growers to product innovation (e.g. bunched tomatoes), market innovation (e.g. introduction of product labels) and process innovation (e.g. biological control). The objective of this paper is to present a proposal to identify the relationship between (1) innovation and strategic change at the firm level, (2) the underlying incentives and (3) the technical and economic performance of the firm.
Innovation however presupposes an underlying problem.
The innovation process induced by problem detection remains largely out of consideration in those studies.
Moreover, innovation is not the only way of solving problems.
Important economic and political problems can also be circumvented by strategic adaptation like emigration and change of main production activity.
For instance, low product prices in the early nineties forced some tomato growers to product innovation (e.g. bunched tomatoes), market innovation (e.g. introduction of product labels) and process innovation (e.g. biological control). The objective of this paper is to present a proposal to identify the relationship between (1) innovation and strategic change at the firm level, (2) the underlying incentives and (3) the technical and economic performance of the firm.
Data have been gathered through an inquiry among arable farmers and horticultural growers, which have participated for at least 5 years in the Dutch Farm Accounting Data Network (FADN). Questions dealt with objectives of the entrepreneur, strategic behavior, innovative behavior, information sources and a SWOT-analysis.
The available information in the FADN included firm data on costs, returns, financial position, investments etc.
Data will be analyzed using Probit.
The combination of the inquiry outcomes and the FADN-data provide an insight for the differences in farm situation, the objectives of the farmer, the farmer’s perception of his firm and the environment, and strategic and innovative behavior.
Authors
J. Bremmer, W.H.M. Baltussen, R.B.M. Huirne
Keywords
Decision making, problem detection, innovation, strategic change
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