Entrepreneurial innovation in chains and networks in Dutch greenhouse horticulture

Abstract

This paper focuses on the critical success factors in entrepreneurial innovation, and the role of cooperation with chain partners, knowledge institutions and colleague firms in the Dutch glasshouse industry. This industry, typified by a large number of family-owned entrepreneurial firms, is generally acknowledged as one of the world leaders in horticultural production and trade. Not only are the auctions of Aalsmeer and Naaldwijk among the most important horticultural auctions in the world, but the knowledge of cultivation techniques is also highly developed in the Netherlands. In order to maintain its leading position and to compete successfully with low-cost countries, Dutch horticulture is constantly reinventing itself. If we take a closer look, however, we see that only a limited number (3%) of the Dutch glasshouse companies actually take the lead in innovation. Using expert advice, we selected the 74 most successful innovative companies to be included in this study, of which 44 companies were willing to participate. In 2004, all the participating companies were visited. In total 139 innovations were analysed, using a combination of half-structured in-depth interviews with the glasshouse entrepreneurs and a structured questionnaire based on 10-point Likert scales. The entrepreneurs were asked to fill out the questionnaire for their most and least successful innovations. As expected, more successful (87) than failed innovations (52) were reported. Our results show that the characteristics demonstrated by the innovative entrepreneurs are essential for success in innovation. The innovative entrepreneur has a strategic vision of how to serve the market and create value. Also, team communication was extremely important. Successful entrepreneurs maintain an open atmosphere and show real commitment to the innovation process. They are in contact with a diverse network of business relations to develop innovations. Intensifying the network relations, e.g. by clustering glasshouse companies, leads to more successful innovation. The more firms in the horticultural production chain were actively involved in the innovation process, the bigger the chances of success. This was especially true for firms downstream toward the market.

Matching demand and supply in the agricultural knowledge infrastructure: Experiences with innovation intermediaries

“…they have to be 'demand driven' (Katz and Barandun, 2002;Byerlee et al, 2002). However, academic researchers in particular are often unaware of SMEs' innovation needs (Caputo et al, 2002;Pannekoek et al, 2005). 'Cognitive distance' between the different actors involved may cause coordination and learning problems during innovation processes (Nooteboom, 2000), and different norms and expectations with regard to desired output exist (Beesley, 2003;AWT, 2005).…”

Innovation and Knowledge Transfer in The Dutch Horticultural System

“…The Dutch greenhouse industry is generally considered one of the world's leaders in horticultural production and trade. By investigating a large number of innovative companies in this industry, it has been possible to identify the critical success factors in entrepreneurial innovation (Pannekoek et al 2005). As expected, superiority in product or process appeared to be by far the most important factor.…”

“…It has also been shown that the 'clustering' of companies (e.g., in the 'Westland') stimulates the diffusion of innovative ideas. Strong relationships within the chain appeared to be prime sources of innovative ideas, downstream relationships were used to obtain market and consumer information and cooperation within the production chain reduced the uncertainty of innovation (Pannekoek et al 2005). To increase the environment-friendly production of crops even further, new innovative greenhouse systems that combine low energy need, limited CO 2 emission and no light disturbance are being developed (see http://www.kasalsenergiebron.nl/).…”

Opportunity identification competence : explaining individual and exploring team opportunity identification by employees

“…If the identification of a first, rudimentary idea provides the set-up for a complex problem situation, CPS is relevant for the further objectification of the idea into an opportunity and the development of the opportunity into a concrete prototype, plan, format, and so on (i.e., opportunity enactment). In opportunity enactment, the OI process involves so many complex and ambiguous elements (Pannekoek et al, 2005), that CPS skills could play a role in many different aspects of entrepreneurship that are to be defined in future research. In conclusion, we believe that the entrepreneurship and cognitive literature can benefit from one another on a conceptual level and that an empirical investigation of the relation between OIC and CPS skills could contribute to a more thorough understanding of the initial steps of the entrepreneurial process.…”

“…For instance, figures from the Netherlands show that about 2.5% of all Dutch horticulture companies introduce innovations truly new for the country (Pannekoek, van Kooten, Kemp, & Omta, 2005), and for those who start many do not even become real business owners (i.e., they drop out before they have been in business for three and a half years; . Similarly, from a large company perspective, Stevens and Burley (2003) estimated that out of 3000 raw ideas only one will eventually become a commercial success.…”