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Market Orientation, Innovativeness, and Performance of Food Companies

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  • Johnson, Aaron J.
  • Dibrell, Charles Clay
  • Hansen, Eric

Abstract

Food processors have seen escalating levels of competition over the past three decades. An underlying objective of this research is to gain a greater understanding of how food companies thrive in the face of this increased competition. This study incorporates market orientation theory (competitor orientation, customer orientation, and interfunctional coordination) and firm innovativeness to explain differences in firm financial performance. A national survey of food processors was conducted and structural equation modeling was used to test the hypotheses. The results show that the more successful firms are more internally focused (interfunctional coordination and innovativeness) than externally focused (competitor and customer orientation).

Suggested Citation

  • Johnson, Aaron J. & Dibrell, Charles Clay & Hansen, Eric, 2009. "Market Orientation, Innovativeness, and Performance of Food Companies," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 27(1-2), pages 1-22.
    • Handle: RePEc:ags:jloagb:90659
    DOI: 10.22004/ag.econ.90659
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    References listed on IDEAS

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    1. Erna van Duren & David Sparling & Calum Turvey & Linda Lake, 2003. "An assessment of the strategies and strengths of medium-sized food processors," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 115-132.
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    Cited by:

    1. Anup Raj & Andrei Kuznetsov & Thankom Gopinath Arun, 2020. "Culture of Sustainability and Marketing Orientation of Indian Agribusiness in implementing CSR Programs—Insights from Emerging Market," JRFM, MDPI, vol. 13(11), pages 1-19, November.
    2. Jasper Grashuis, 2019. "The impact of brand equity on the financial performance of marketing cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 35(2), pages 234-248, April.
    3. Eric T. Micheels & Hamish R. Gow, 2015. "The Effect of Market Orientation on Learning, Innovativeness, and Performance in Primary Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 209-233, June.
    4. Jana Hornungová & František Milichovský, 2018. "Agricultural Sector Performance Evaluation in Terms of Financial Indicators: A Comparison of Czech Republic, Slovakia and Western Balkan States," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(2), pages 497-507.
    5. Grashuis, Jasper & Dary, Stanley Kojo, 2017. "An empirical investigation of patent and trademark ownership propensity and intensity in the U.S. food and drink industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(5).
    6. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    7. Hendar Hendar & Tatiek Nurhayati & Gita Sugiyarti, 2018. "Religio-centric fashion advantage on marketing performance: The role of innovativeness and customer responsiveness," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 35-36, Octubre-D.
    8. Laura Carraresi & Xhevrie Mamaqi & Luis Miguel Albisu & Alessandro Banterle, 2016. "Can Strategic Capabilities Affect Performance? Application of RBV to Small Food Businesses," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 416-436, July.
    9. Hendar Hendar & Ferdinand Augusti Tae & Nurhayati Tatiek, 2017. "Introducing the religio-centric positional advantage to Indonesian small businesses," Management & Marketing, Sciendo, vol. 12(1), pages 78-102, March.

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    Keywords

    Agribusiness; Marketing;

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