Farmers and horticultural growers are expected by society to increase production to meet the demand for food and other agricultural produce, and, simultaneously, reduce negative effects on the physical and social environment. Whether farmers and horticultural growers choose to develop their businesses this way, is not clear. A market orientation (MO) and entrepreneurial orientation (EO) of farmers and horticultural growers is propagated to increase farm profitability and stimulate the economic vigour of rural areas. An MO is a firm owners’ belief that the best way to achieve the firm’s objectives is to satisfy customers more effective and efficient than competitors do. An EO is a firm owners’ willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services and markets, and be more proactive than competitors towards new marketplace opportunities. However, it is not clear how MO and EO influence farmers’ and horticultural growers’ choices about how to develop their business. In this study a model is developed with hypotheses about the influence of EO and MO on strategic marketing choices of farmers. The model is tested on a sample of 588 Dutch farmers and horticultural growers. Four strategic groups were identified. A strategic group is a group of firms that have made similar choices about how to develop their business. Results show that higher levels of EO and MO are found in strategic groups that emphasise cooperating with buyers, increasing prices, and starting new activities. Lower levels of EO and MO are found in strategic groups that emphasize reducing costs and decreasing debts. EO and MO, however, have different influences on individual elements of strategy.
Barringer, B.R. and A.C. Bluedorn, 1999. The relationship between corporate entrepreneurship and strategic management. Strategic Management Journal, 20(5): 421-444.
Becker-Olsen, K.L., B.A. Cudmore and R.P. Hill, 2006. The impact of perceived corporate social responsibility on consumer behavior. Journal of Business Research, 59(1): 46-53.
Bjerke, B. and C.M. Hultman, 2002. Entrepreneurial marketing: the growth of small firms in the new economic era, Edward Elgar, Cheltenham, UK.
Cano, C.R., F.A. Carrillat and F. Jaramillo, 2004. A meta-analysis of the relationship between market orientation and business performance: evidence from five continents. International Journal of Research in Marketing, 21(2): 179-200.
Carson, D. and A. Gilmore, 2000. SME marketing management competencies. International Business Review, 9(3): 363-382.
Carter, S., 1998. Portfolio entrepreneurship in the farm sector: indigenous growth in rural areas? Entrepreneurship and Regional Development, 10(1): 17-32.
Chabowski, B.R., J.A. Mena and T.L. Gonzalez-Padron, 2011. The structure of sustainability research in marketing, 1958-2008: a basis for future research opportunities. Journal of the Academy of Marketing Science, 39(1): 55-70.
Chad, M. and S. Fraser, 2006. The relationship between corporate social performance and corporate financial performance: industry type as a boundary condition. The Business Review, 5: 240-245.
Clark, J., 2009. Entrepreneurship and diversification on English farms: identifying business enterprise characteristics and change processes. Entrepreneurship and Regional Development, 21(2): 213-236.
Cooper, R.G., 1999. From experience – the invisible success factors in product innovation. Journal of Product Innovation Management, 16(2): 115-133.
Covin, J.G. and M.P. Miles, 1999. Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23(3): 47-63.
Covin, J.G. and D.P. Slevin, 1989. Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1): 75-87.
De Lauwere, C.C., 2005. The role of agricultural entrepreneurship in Dutch agriculture of today. Agricultural Economics, 33: 229-238.
Hair, J.F., W.F. Black, B.J. Babin and R.E. Anderson, 2010. Multivariate data analysis: a global perspective. Pearson, Upper Saddle River, N.J., USA, 800 pp.
Hills, G.E., C.M. Hultman and M.P. Miles, 2008. The evolution and development of entrepreneurial marketing. Journal of Small Business Management, 46(1): 99-112.
Hult, G.T.M., C.C. Snow and D. Kandemir, 2003. The role of entrepreneurship in building cultural competitiveness in different organizational types. Journal of Management, 29(3): 401-426.
Hunt, S.D. and R.M. Morgan, 1995. The comparative advantage theory of competition. Journal of Marketing, 59: 1-15.
Kara, A., J.E. Spillan and O.W. DeShields, 2005. The effect of a market orientation on business performance: a study of small-sized service retailers using MARKOR scale. Journal of Small Business Management, 43(2): 105-118.
Kirca, A.H., S. Jayachandran and W.O. Bearden, 2005. Market orientation: a meta-analytic review and assessment of its antecedents and impact on performance. Journal of Marketing, 69(2): 24-41.
Kirzner, I.M., 1974. Competition and entrepreneurship. Un. of Chicago, Chicago, IL, USA, 246 pp.
Knudson, W., A. Wysocki, J. Champagne and H.C. Peterson, 2004. Entrepreneurship and innovation in the agri-food system. American Journal of Agricultural Economics, 86(5): 1330-1336.
Kornelis, M., E. van Herpen, I. van der Lans and L. Aramyan, 2010. Using non-food information to identify food-choice segment membership. Food Quality and Preference, 21(5): 512-520.
Leeuwis, C., R. Smits, J. Grin, L.W.A. Klerkx, B.C.v. Mierlo and A. Kuipers, 2006. The design of an innovation-enhancing environment. Transforum Working papers, Transforum Agro & Groen, Zoetermeer, the Netherlands.
Li, Y., Y.B. Zhao, J. Tan and Y. Liu, 2008. Moderating effects of entrepreneurial orientation on market orientation-performance linkage: evidence from Chinese small firms. Journal of Small Business Management, 46(1): 113-133.
Lumpkin, G.T. and G.G. Dess, 2001. Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5): 429-451.
Madsen, E.L., 2007. The significance of sustained entrepreneurial orientation on performance of firms – a longitudinal analysis. Entrepreneurship and Regional Development, 19(2): 185-204.
Matsuno, K., J.T. Mentzer and A. Ozsomer, 2002. The effects of entrepreneurial proclivity and market orientation on business performance. Journal of Marketing, 66(3): 18-32.
McElwee, G., 2008. A taxonomy of entrepreneurial farmers. Entrepreneurship and small business, 6(3): 465-478.
McWilliams, A. and D. Siegel, 2001. Corporate social responsibility: a theory of the firm perspective. Academy of Management Review, 26(1): 117-127.
Miller, D., 1983. Correlates of entrepreneurship in three types of firms. Management Science, 29(7): 770-791.
Narver, J.C. and S.F. Slater, 1990. The effect of a market orientation on business profitability. Journal of Marketing, 54(4): 20-35.
O’Dwyer, M., A. Gilmore and D. Carson, 2009. Innovative marketing in SMEs. European Journal of Marketing, 43(1-2): 46-61.
Olsson, R., 1988. Management for success in modern agriculture. European Review of Agricultural Economics, 15(2-3): 239-259.
Pelham, A.M., 2000. Market orientation and other potential influences on performance in small and medium-sized manufacturing firms. Journal of Small Business Management, 38(1): 48-67.
Phillipson, J., M. Gorton, M. Raley and A. Moxey, 2004. Treating farms as firms? The evolution of farm business support from productionist to entrepreneurial models. Environment and Planning C-Government and Policy, 22(1): 31-54.
Porter, M.E., 1985. Competitive advantage: creating and sustaining superior performance, Free Press, New York, NY, USA, 557 pp.
Porter, M.E. and M.R. Kramer, 2006. Strategy & society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12): 78-92.
Pyysiäinen, J., A. Anderson, G. McElwee and K. Vesala, 2006. Developing the entrepreneurial skills of farmers: some myths explored. International Journal of Entrepreneurial Behaviour and Research, 12(1): 21-39.
Rauch, A., J. Wiklund, G. Lumpkin and M. Frese, 2009. Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3): 761-787.
Schumpeter, J.A., 1934. The theory of economic development: an inquiry into profits, capital, credit, interest and the business cycle. Oxford University Press, London, UK.
Sen, S. and C.B. Bhattacharya, 2001. Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38(2): 225-243.
Shane, S. and S. Venkataraman, 2000. The promise of enterpreneurship as a field of research. The Academy of Management Review, 25(1): 217-226.
Slater, S.F. and J.C. Narver, 2000. The positive effect of a market orientation on business profitability: a balanced replication. Journal of Business Research, 48(1): 69-73.
Smith, N.C., 2003. Corporate social responsibility: whether or how? California Management Review, 45(4): 52-76.
Swierczek, F.W. and T.T. Ha, 2003. Entrepreneurial orientation, uncertainty avoidance and firm performance: an analysis of Thai and Vietnamese SMEs. The International Journal of Entrepreneurship and Innovation, 4(1): 46-58.
Van Latesteijn, H.C. and K. Andeweg, 2011. The TransForum model: transforming agro innovation toward sustainable development. Springer, Dordrecht, the Netherlands.
Verhees, F., A. Kuipers and M. Meulenberg, 2008. Marketing potential of corporate social responsibility in supply chains. Journal on Chain and Network Science, 8(2): 143-152.
Verhees, F.J.H.M. and M.T.G. Meulenberg, 2004. Market orientation, innovativeness, product innovation, and performance in small firms. Journal of Small Business Management, 42(2): 134-154.
Verhees, F.J.H.M., A. Kuipers and M. Klopcic, 2011. Entrepreneurial proclivity and farm performance. The cases of Dutch and Slovenian farmers. International Journal of Entrepreneurship and Small Business 12(3): 169-177.
Wedel, M. and W.A. Kamakura, 2000. Market segmentation: conceptual and methodological foundations, Kluwer Academic Publishers, Boston, MA, USA.
Wiklund, J. and D. Shepherd, 2003. Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13): 1307-1314.
Wiklund, J. and D. Shepherd, 2005. Entrepreneurial orientation and small business performance: a configurational approach. Journal of Business Venturing, 20(1): 71-91.
Zahra, S.A., 1993. Environment, corporate entrepreneurship, and financial performance – a taxonomic approach. Journal of Business Venturing, 8(4): 319-340.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 253 | 186 | 17 |
| PDF Views & Downloads | 254 | 147 | 11 |
Farmers and horticultural growers are expected by society to increase production to meet the demand for food and other agricultural produce, and, simultaneously, reduce negative effects on the physical and social environment. Whether farmers and horticultural growers choose to develop their businesses this way, is not clear. A market orientation (MO) and entrepreneurial orientation (EO) of farmers and horticultural growers is propagated to increase farm profitability and stimulate the economic vigour of rural areas. An MO is a firm owners’ belief that the best way to achieve the firm’s objectives is to satisfy customers more effective and efficient than competitors do. An EO is a firm owners’ willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services and markets, and be more proactive than competitors towards new marketplace opportunities. However, it is not clear how MO and EO influence farmers’ and horticultural growers’ choices about how to develop their business. In this study a model is developed with hypotheses about the influence of EO and MO on strategic marketing choices of farmers. The model is tested on a sample of 588 Dutch farmers and horticultural growers. Four strategic groups were identified. A strategic group is a group of firms that have made similar choices about how to develop their business. Results show that higher levels of EO and MO are found in strategic groups that emphasise cooperating with buyers, increasing prices, and starting new activities. Lower levels of EO and MO are found in strategic groups that emphasize reducing costs and decreasing debts. EO and MO, however, have different influences on individual elements of strategy.
| All Time | Past 365 days | Past 30 Days | |
|---|---|---|---|
| Abstract Views | 0 | 0 | 0 |
| Full Text Views | 253 | 186 | 17 |
| PDF Views & Downloads | 254 | 147 | 11 |