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Determinants of Food Industry Performance: Survey Data and Regressions for Denmark

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  • W. H. Furtan
  • J. Sauer

Abstract

This paper investigates empirically the determinants of firms’ performance in the agri‐food sector by using recent survey data for Denmark. Treating sales per employee as a proxy for value added, we estimate several bootstrapped regression models to draw conclusions on the marginal effects of potential performance determinants such as the form and nature of ownership, stage of the food chain and commodity sector, new product development, staff quality, firms’ competitive stance, and elements of firms’ strategy. To draw robust inferences we apply, besides the ordinary heteroscedasticity‐corrected Tobit maximum likelihood estimator, a non‐parametric least absolute deviations estimator (LAD/CLAD) based on a quantile regression procedure. The results indicate that we cannot reject the hypothesis of no influence of dominant orientation on value added. Rather, firms’ focus on human capital, stage and commodity sector better explains their value addition. We reject the hypothesis that regional networks have no influence on value added. Location in Århus, emphasis on human capital and the negative influence of outsourcing on value added all provide supporting evidence. We reject the hypothesis of no influence of foreign direct investment (FDI), and moreover propose that FDI has targeted the Danish domestic market as a source of value added.

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  • 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.
    • Handle: RePEc:bla:jageco:v:59:y:2008:i:3:p:555-573
    DOI: 10.1111/j.1477-9552.2008.00164.x
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    5. Carraresi, Laura & Banterle, Alessandro, 2015. "Agri-food Competitive Performance in EU Countries: A Fifteen-Year Retrospective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(2), pages 1-26, May.
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    7. Rodriguez, Jenny Mairena Herrera & Gómez, Lina María Otálora & Rueda, Oscar Mauricio Lozano, 2020. "La innovación en marketing de las empresas agroindustriales de la Provincia de Sugamuxi," Revista Tendencias, Universidad de Narino, vol. 21(2), pages 45-62, July.
    8. Ornella W. Maietta & Cristian Barra & Roberto Zotti, 2017. "Innovation and University-Firm R&D Collaboration in the European Food and Drink Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 749-780, September.
    9. López-Mosquera, Natalia & Álvarez-Coque, José María García & Sánchez, Mercedes, 2014. "Does Market Orientation in Small-Scale farms pay off? A study of Innovation behaviour in Spanish agriculture," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182813, European Association of Agricultural Economists.
    10. Pascal L. Ghazalian & Ali Fakih, 2017. "R&D and Innovation in Food Processing Firms in Transition Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 427-450, June.
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    More about this item

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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