IDEAS home Printed from https://ideas.repec.org/p/ags/aaea08/6422.html
   My bibliography  Save this paper

Determinants of Food Industry Performance – Empirical Evidence Based on a Survey

Author

Listed:
  • Furtan, William Hartley
  • Sauer, Johannes

Abstract

This paper empirically investigates 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 addition 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 ML-estimator, a nonparametric 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 can reject the hypothesis that regional networks have no influence on value added. Differences in location, 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 FDI, and moreover propose that FDI has targeted the domestic Danish market as a source of value added.

Suggested Citation

  • Furtan, William Hartley & Sauer, Johannes, 2008. "Determinants of Food Industry Performance – Empirical Evidence Based on a Survey," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea08:6422
    DOI: 10.22004/ag.econ.6422
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/6422/files/454424.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.6422?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. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 975-1005, December.
    2. Gary W. Brester, 1999. "Vertical Integration of Production Agriculture Into Value-Added Niche Markets: The Case of Wheat Montana Farms & Bakery," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(1), pages 276-285.
    3. W. Bruce Traill & Matthew Meulenberg, 2001. "Innovation in the food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 18(1), pages 1-21.
    4. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
    5. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    6. Peter Walkenhorst;, 2001. "Determinants of foreign direct investment in the food industry: The case of Poland," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 383-395.
    7. Christy, Ralph D. & Connor, John M., 1989. "Economic Forces Influencing Value-Added Food Industries: Implications For Southern Agriculture," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-10, July.
    8. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
    9. Asheim, Bjorn T. & Coenen, Lars, 2005. "Knowledge bases and regional innovation systems: Comparing Nordic clusters," Research Policy, Elsevier, vol. 34(8), pages 1173-1190, October.
    10. Gary W. Brester & Ted C. Schroeder, 1995. "The Impacts of Brand and Generic Advertising on Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 969-979.
    11. Brian W. Gould & Kurt A. Carlson, 1998. "Strategic Management Objectives of Small Manufacturers: A Case Study of the Cheese Industry," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(2), pages 612-630.
    12. Derek Bosworth & Joanne Loundes, 2002. "The Dynamic Performance of Australian Enterprises," Melbourne Institute Working Paper Series wp2002n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    13. Maryann Feldman, 1999. "The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 5-25.
    14. Derek Baker & Kenneth Baltzer & Anja Skadkær Møller, 2006. "Branding behavior in the Danish food industry," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 31-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Silverio Alarcón & Mercedes Sánchez, 2013. "External and Internal R&D, Capital Investment and Business Performance in the Spanish Agri-Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 654-675, September.
    2. 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.
    3. 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.
    4. Sauer, Johannes & Latacz-Lohmann, Uwe, 2012. "Efficient Innovation in Dairy Production - Empirical Findings for Germany," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137386, German Association of Agricultural Economists (GEWISOLA).
    5. Chen Cao & Xueyun Chen, 2021. "Can Industrial Integration Improve the Sustainability of Grain Security?," Sustainability, MDPI, vol. 13(24), pages 1-17, December.
    6. Cristian Barra & Nazzareno Ruggiero, 2023. "Quality of Government and Types of Innovation—Empirical Evidence for Italian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1749-1789, June.
    7. Cristian Barra & Nazzareno Ruggiero, 2022. "Firm innovation and local bank efficiency in Italy: Does the type of bank matter?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 1083-1128, December.
    8. Geldes, Cristian & Felzensztein, Christian & Turkina, Ekaterina & Durand, Aurélia, 2015. "How does proximity affect interfirm marketing cooperation? A study of an agribusiness cluster," Journal of Business Research, Elsevier, vol. 68(2), pages 263-272.
    9. 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.
    10. Sauer, J. & Latacz-Lohmann, Uwe, 2013. "Efficient Innovation in Dairy Production - Empirical Findings for Germany," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158865, Agricultural Economics Society.
    11. Sauer, J. & Latacz-Lohmann, U., 2013. "Efficient Innovation in Dairy Production – Empirical Findings for Germany," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.

    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. 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.
    2. 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.
    3. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    4. Christophe CARRINCAZEAUX (E3I-IFReDE-GRES) & Frédéric GASCHET (IERSO-IFReDE-GRES), 2006. "Knowledge and the diversity of innovation systems: a comparative analysis of European regions," Cahiers du GRES (2002-2009) 2006-29, Groupement de Recherches Economiques et Sociales.
    5. Christophe CARRINCAZEAUX, 2009. "Spatial dynamics of innovation (In French)," Cahiers du GREThA (2007-2019) 2009-21, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.
    7. Albahari, Alberto & Pérez-Canto, Salvador & Barge-Gil, Andrés & Modrego, Aurelia, 2017. "Technology Parks versus Science Parks: Does the university make the difference?," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 13-28.
    8. Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.
    9. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    10. Cristina Chaminade & Monica Plechero, 2015. "Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry," European Planning Studies, Taylor & Francis Journals, vol. 23(2), pages 215-237, February.
    11. Alberto Marzucchi & Davide Antonioli & Sandro Montresor, 2015. "Industry–research co-operation within and across regional boundaries. What does innovation policy add?," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 499-524, August.
    12. Elisa Giuliani, 2005. "The Structure of Cluster Knowledge Networks Uneven, not Pervasive and Collective," DRUID Working Papers 05-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    13. Speldekamp, Daniël & Knoben, Joris & Saka-Helmhout, Ayse, 2020. "Clusters and firm-level innovation: A configurational analysis of agglomeration, network and institutional advantages in European aerospace," Research Policy, Elsevier, vol. 49(3).
    14. repec:spo:wpmain:info:hdl:2441/32ctbi8fbq8j5aom2j69qam6tf is not listed on IDEAS
    15. repec:elg:eechap:14395_24 is not listed on IDEAS
    16. Rosina Moreno & Ernest Miguélez, 2012. "A Relational Approach To The Geography Of Innovation: A Typology Of Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 492-516, July.
    17. Chyi, Yih-Luan & Lai, Yee-Man & Liu, Wen-Hsien, 2012. "Knowledge spillovers and firm performance in the high-technology industrial cluster," Research Policy, Elsevier, vol. 41(3), pages 556-564.
    18. Riccardo Crescenzi & Andrea Filippetti & Simona Iammarino, 2017. "Academic inventors: collaboration and proximity with industry," The Journal of Technology Transfer, Springer, vol. 42(4), pages 730-762, August.
    19. Edward J. Malecki, 2010. "Everywhere? The Geography Of Knowledge," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 493-513, February.
    20. Mirja Meyborg & Axel Schaffer, 2014. "Regional and global collaborations for knowledge in German academia," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 34(2), pages 157-176, October.
    21. Calvo, Nuria & Fernández-López, Sara & Rodríguez-Gulías, María Jesús & Rodeiro-Pazos, David, 2022. "The effect of population size and technological collaboration on firms' innovation," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    22. Joaquín M. Azagra-Caro, 2012. "Access to universities’ public knowledge: who’s more nationalist?," Scientometrics, Springer;Akadémiai Kiadó, vol. 91(3), pages 671-691, June.

    More about this item

    Keywords

    Agribusiness;

    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:aaea08:6422. 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/aaeaaea.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.