In the literature on governance of value chains, innovation deserves further attention. This paper investigates the role of product and marketing innovations in making an industry or a region a market leader. What kinds of innovations, who has the power to implement them, and who is involved in the innovation process vary depending on the extent of integration in the value chain and its governance. Quality management in the value chain should be central to the product innovation process. Against the backdrop of this institutional framework, the paper examines the Iberian salted fish market.bs_bs_banner Growth and Change

Based on the stratified ontology of critical realism, this paper identifies four decisive, lasting diachronic and synchronic deep structures in a traditional European seafood value chain and seafood market. Realist philosophy constitutes a platform from which to explore strategies and possible new mechanisms to overcome export barriers that Norwegian producers face, and to adjust the current causal deep structures in the value chain for salted cod between Norway and Spain. The paper is based on a thorough empirical study that investigates possible strategies by which Norwegian producers can create an interaction between production knowledge and market knowledge in order to sell products at a reasonable profit. This paper is an example of how research projects can be ontologically and methodologically based on critical realism, and how critical realism can support the search for an emancipatory strategy for a resource periphery.

This chapter sums up the drivers and barriers for Norwegian producers in the Spanish market for salted fish. Four decisive changes in the lasting deep structures in the connecting value chain are identified in this book: (i) In the declining demand for traditional salted fish. (ii) In the composition of demanded products in the market. (iii) In the geographical patterns of the dominant consumer conventions and finally, (iv) In the lack of market oriented adaption of Norwegian-Spanish value chain conventions. The chapter applies critical realism as a platform to explore strategies to overcome the trade barrier in order to adjust the current causal deep structures in the value chain. Based on a thorough empirical study the chapter discusses possible strategies for producers to create interactive convention platforms between production knowledge and market knowledge in order to develop competitive, sustainable and profitable marketing strategies.

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