Toward a Greater Level of International Entrepreneurship Among Smaller Agribusiness Firms: Resource Levers and Strategic Options

Management International ReviewBand 45 Nr. 3, Januar 2005

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Zusammenfassung


This paper explores the influence of key resource categories -- managerial, physical, organizational, relational -- and strategic orientation on the international performance of small and medium-sized firms within the relatively neglected agribusiness sector. It reports case study evidence from seven award-winning, internationally-active enterprises, including two rapidly-internationalizing firms, and suggests relevant managerial, policy and future research implications. Analysis results pointed to the performance-enhancing effects of having internationally-orientated and relevantly-experienced managers; state-of-the-art production/service facilities; unique knowledge resources, applicable to product, service, and relationship management areas; and useful strategic relationships with resource-rich external parties. Adopting a quality differentiation focus (on specific, internationally available, market niches) and pursuing feasible efficiency-seeking strategies also emerged as important.

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Toward a Greater Level of International Entrepreneurship Among Smaller Agribusiness Firms: Resource Levers and Strategic Options

Introduction

Recent international entrepreneurship research has predominantly focused on high growth, high technology and service firms (Oviatt/McDougall 1994, 1995, Bell 1995, Oakley 1996, Coviello/Munro 1997, Zahra/Jennings/Kuratko 1999, Crick/ Jones 2000), with significantly less attention to their counterparts in the more traditional agribusiness sector (Crick/Chaudhry 2000). While the reasons for this relative neglect are not hard to find (e.g. the latter sector's regulatory complexity and limited growth prospects), a greater research focus on agribusinesses might lead to markedly improved levels of international entrepreneurial activity in the sector. Consistent with recent calls in the literature for a greater diversity in the "industry scope" of firm-level entrepreneurship research (Zahra/Jennings/Kuratko 1999), this paper explores the key influences on international entrepreneurship among smaller agribusiness firms.

The term "agribusinesses", as used in this paper, encompasses firms operating within the broad agricultural sector, including bulk commodities, high value fresh produce, semi-processed or intermediate products, highly processed consumer food and beverages, forest products and agricultural machinery (Ackerman 1994, Aksoy/ Kaynak 1994, Lawson 1998, Crick/Chaudhry 2000, Childs/Gichuhi 2001). In line with widely adopted practice, smaller firms, or small and medium sized firms (SMEs), are used in reference to agribusinesses employing less than 500 staff (OECD 1997)1.

Greater international entrepreneurial activity among this category of firms has become particularly urgent owing to a number of important developments in their policy and market (demand and supply) environments, at national and supranational levels. Taking the policy environment first, there is no doubt that the increasing trend toward the liberalisation of agricultural trade (as indicated by emerging proposals for the next round of WTO negotiations; the European Union's Common Agricultural Policy reforms, etc.) is likely to result in reduced levels of protection for domestically-focused firms, but greater market access and opportunities for outward-oriented agribusiness enterprises. The envisaged reduction in export subsidy ceilings across countries (Ackerman 1994, Barkema/...

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