scholarly journals How do small rural food-processing firms compete?A resource-based approach to competitive strategies

2004 ◽  
Vol 13 (Supplement) ◽  
Author(s):  
S. FORSMAN

The study was concerned with the competitive strategies of small food-processing firms in rural Finland and their ability to achieve and maintain a competitively advantaged position in relation to larger food companies in the dynamic and mature food market. Competitive strategies were approached from the resource-based view (RBV) that emphasises internal firm factors as sources of competitive advantage and long-term success. As strategic choices, differentiation was specifically considered. The main objective was to explain the relationships between resources, competitive advantage and firm success. To understand the ambiguous nature of the resources in the small-scale food production context, the study introduced a distinction between strategic resources and basic resources and the strategic relationship between them. The empirical part of the study was based on quantitative analyses of the survey data collected from 238 small (less than 20 persons), food-processing firms in rural Finland. The sample firms represented different branches of the food industry and 39% of them operated in connection with a farm. The linkage between resources, competitive advantage and firm success was investigated by means of cluster analysis, mean comparisons and LISREL modelling. The results demonstrated that there are some typical features relating to small-scale food production in Finland. The results also revealed that small-scale, rural food processing firms do not constitute a homogenous group of their own, but that different strategies among small firms can be identified as well. The analyses proved that a linkage between resources, competitive advantage and firm success can be identified, which is consistent with resource-based logic. However, according to the findings, following a particular strategy does not automatically ensure that a firm will achieve success. The analysis also showed that strategic resources and basic resources are strongly interlinked and that the relationship between basic resources and success was, however, considerably stronger than the link between strategic resources and success. The study concludes that resource deployment – in terms of both strategic resources and basic resources – should be balanced in order for a small food-processing firm to have the opportunity to establish a relatively favourable position in the market. Based on the results, theoretical, methodological and managerial implications are suggested and ideas for the further research are provided.;

2017 ◽  
Vol 9 (4) ◽  
pp. 709-728 ◽  
Author(s):  
Kirsi Korhonen ◽  
Ossi Kotavaara ◽  
Toivo Muilu ◽  
Jarmo Rusanen

Abstract Consumers and institutional kitchens, as well as traders, have shown increasing interest towards local food. This is particularly due to the transparency and traceability characteristic of a short supply chain and social aspects related to food origins. The trend has been increasingly common during the past decade in Europe and North America, and it is strongly evident in the case area of this study in Northern Ostrobothnia, Finland. In general, ease of access to food is highly important for consumers and crucial for institutional kitchens, in addition to quality aspects and price. However, regardless of proximity, poor accessibility is one of the key issues preventing the further growth of local food markets. Due to scale economics in food value chain, food transport is presently organised mainly by centralised, large-scale logistics companies directed via hubs serving millions of consumers. Accordingly, production volumes required to enter large-scale markets are often unattainable for disjointed small-scale local food producers. In this study, geographic information system (GIS)-based accessibility analyses are applied for analysing potential for integral networking of local food production and transport companies. Berry production was selected as a case study because it has a relatively strong role in Northern Ostrobothnia, while its logistics are notably underdeveloped. Spatial data of primary production volumes consists of register records of farm-specific cultivation areas and average yields in Northern Ostrobothnia and Finland. Accessibility computations are based on the digital model of the Finnish road network, Digiroad. Two surveys were also implemented to farmers and food processing companies to seek views on food processing, sales, logistics and procurements regarding local food. Data from the surveys was used in accessibility analysis, which enables exploration of opportunities for establishing ‘local food’ clusters integrating small producers into a more effective and competitive network. Information about favourable conditions for cooperative networks in the local food sector may help in establishing companies and their growth. Again, successful networking may increase scale economies in local production in transport, processing and marketing.


2006 ◽  
Vol 14 (02) ◽  
pp. 87-104 ◽  
Author(s):  
VIRPI KAIKKONEN

The study discusses the development and growth of rural food-processing micro firms, and whether such firms are growth-oriented and under which conditions they are growth-oriented. The study shows that there are micro firms that are growth-oriented in rural areas. However, rural micro firm owners want to achieve their firm's growth by using their own and the family's resources and capabilities, and by avoiding risks. Furthermore, the study shows that when a small-scale firm wants to grow and seeks new market opportunities, bottlenecks in production begin to hold back the development of the firm. It seems that micro firm owners try to find machinery that is more automated than what they have, but of a size that is suitable for their production and their short-term expansion plans. The position of micro firms in the food sector makes production planning a challenge for them; small firms need to be flexible in production, and at the same time they must pay attention to cost elements. Therefore, production should become more automated and still stay flexible.


2021 ◽  
Vol 1 ◽  
pp. 10
Author(s):  
Renata Sõukand ◽  
Raivo Kalle ◽  
Michele Filippo Fontefrancesco ◽  
Andrea Pieroni

The lockdown caused by coronavirus disease 2019 (COVID-19) has created a situation in which food availability is affected not only by the availability of money but also by the availability of food itself. On the basis of five pillars, including 1) supporting community-based farming, 2) defending small firms, 3) developing narratives on the high value of local food,4) encouraging subsistence gardening and foraging in the wild, and 5) promoting local ecological and gastronomic knowledge, the article points a way forward to attain greater sustainability and resilience of safe food chains that starts with reassessing the relevance of local food systems.


2021 ◽  
Vol 1 ◽  
pp. 10
Author(s):  
Renata Sõukand ◽  
Raivo Kalle ◽  
Michele Filippo Fontefrancesco ◽  
Andrea Pieroni

The lockdown caused by the coronavirus 2019 disease (COVID-19) has created a situation in which food availability is affected not only by the availability of money but also by the availability of food itself. On the basis of five pillars, including 1) supporting community-based farming, 2) defending small firms, 3) developing narratives on the high value of local food, 4) encouraging subsistence gardening and foraging in the wild, and 5) promoting local ecological and gastronomic knowledge, the essay points a way forward to attain greater sustainability and resilience of safe food chains that starts with reassessing the relevance of local food systems.


2000 ◽  
Vol 08 (04) ◽  
pp. 361-379 ◽  
Author(s):  
FERNANDO A. P. GIMENEZ ◽  
CLEUFE PELISSON ◽  
EUGÊNIO G. S. KRÜGER ◽  
PAULO HAYASHI

This study explores how small firms' owner-managers view competition in their business environment and how this view may be associated with specific strategic choices leading to a competitive position in their markets. Its main research question deals with why different small firms' owner-managers choose different competitive strategies in a given industry setting. One of its main contentions is that in examining this phenomenon it was necessary first to explore the mental categorisations that guide the entrepreneurs' understanding of their competitive environment. Competition is a core concept in strategic management, and analysis of competitors' strategies is thought to be essential for a better understanding of competition and strategy formulation (Porter, 1980). Top managers' understanding of their competitive systems influences their decisions and acts, and in turn shapes their environment (Weick, 1979). As Zahra and Pearce (1990) have indicated, there is considerable theoretical and practical importance in further exploration of the processes that influence decision choices of dominant individuals within an organisation. One situation in which the views of an individual (as opposed to those of a political grouping) are likely to be dominant is that of the small business owner-manager, suggesting that studying samples of entrepreneurs could be a starting point for developing more psychological models of strategic choice. Data were collected with a sample of small firms' owners and managers running their businesses in the city of Londrina, Pr. The data collection procedures involved detailed and systematic interviews. A cognitive perspective was followed using Repertory Grid Technique that is derived from George Kelly's Personal Constructs Psychology. This technique allowed for the elicitation of constructs adopted by the respondents in the process of making sense of their competitive environment. Further data analysis indicated the most common features associated with the entrepreneurs' view of competitors' strategies. This allowed for the construction of taxonomy of strategic positions based on respondents' perception of their competitive environment.


Author(s):  
Cahya Sulistyaningsih

Program of acceleration of local resource based diversification of food consumption (P2KP - BSL) has nationally implemented as the initial stage for program socialization since 2009 and simultaneously implemented in 2011. This is a descriptive study. Districts of Sekarbela, Selaparang, and Ampenan were selected as the research focused-areas considering that the three districts have already implemented three sub-programs of P2KP – BSL that are; a) Sub-program of Optimizing Courtyard Utilization, b) Sub-program of Food Processing, c) Sub-program of Consumption Campaigns of Diverse Food, Balanced Nutrition, and Safe for School Children. Finding of the study in Mataram town shows that there are seven planned sub-programs of P2KP – BSL; however, due to the limited fund, there only three sub-programs; sub-program of Optimizing Courtyard Utilization, sub-program of Food Processing, and sub-program of Consumption Campaigns of Diverse Food, Balanced Nutrition, and Safe for School Children have been realized . Meanwhile, there are four other unimplemented programs; 1) sub-program of Specific Region Food Production Developments, 2) sub-program of Local Food Lift, 3) sub-program of Food Business Development and SMEs, and 4) sub-program of Agro-Food Industry Development. Government has effort to change people's habits aiming to reduce the rice consumption and started to diversify food consumption through a variety of ways - dissemination through print media, electronic media, trainings, and field schools.


1993 ◽  
Vol 01 (01) ◽  
pp. 133-144 ◽  
Author(s):  
Erin Goh ◽  
Wee-Liang Tan

Biotechnology is one of the fields highlighted by the Economic Committee as an area of high value-added technology which could be developed in Singapore. The recommendation of the Economic Committee was that the venture capital industry be developed to aid in attracting young foreign technological firms to Singapore. Biotechnology includes the areas of pharmaceuticals, chemicals, food processing and agro-technology. A number of local biotechnology businesses have sprung up. This is an interesting phenomenon since biotechnology is difficult ground for small firms to be engaged in. It is usually associated with a long lag time between the development and the actual introduction of the product into the market-place, a need for large sums to be invested in research, and a short product life span, amongst other disadvantages. In an environment where enterprise is only currently being encouraged and entrepreneurship being nurtured, one would not have expected local entrepreneurs to venture into biotechnology. It would therefore be of interest to examine these businesses to see if there are any unique problems that they face by operating in Singapore. This paper proposes to examine the problems encountered by these local firms. Some of the problems ascertained through interviews with local firms concern financing and government funding, and availability of trained staff.


Author(s):  
Maral Neyestani ◽  
Parisa Shavali Gilani ◽  
Mohadeseh Fesahat ◽  
Ebrahim Molaee-Aghaee ◽  
Nabi Shariatifar

Trace elements are compounds that are essential in small amounts for biochemical reactions and to maintain human health. Almost all foods can contain varying amounts of these metals. In this study, the effects of food processing on the content of trace metals are investigated. Extensive interpretations of processing, including aspects of food production and specific examples of changes in metal content due to processing will be discussed. Pre-consumption food processing to improve rheological properties and increase shelf life is inevitable, which changes the bioavailability and amount of these compounds in different directions depending on the process. The amount of these trace metals in the food product can be affected by various conditions such as heating, fermentation, food additives, etc. The main factor in reducing trace elements in food, especially the use of heat in a special method and on the other hand, factors such as fermentation can also increase the bioavailability of these elements.


Sign in / Sign up

Export Citation Format

Share Document