The importance of innovation adoption and generation in linking entrepreneurial orientation with product innovation and farm revenues: the case of vegetable farmers in West Java, Indonesia

Abstract

The growth of modern agrifood markets, especially in Indonesia, has stimulated entrepreneurially oriented farmers to seize business opportunities through innovation. This paper aims to investigate in a dynamic agrifood market if entrepreneurial orientation enhances innovation adoption and generation and if both of these actions enhance product innovation and, eventually, farm revenues of vegetable farmers in West Java, Indonesia. The findings demonstrate that entrepreneurial orientation enhances innovation adoption and generation, which in turn enhance product innovation. Finally, product innovation enhances farm revenues. The findings contribute to a better understanding of the role of innovation in facilitating entrepreneurially oriented farmers to perform better when facing a dynamic market. Entrepreneurial orientation enables farmers to innovate by taking risks to anticipate future demand, through either adoption of available innovations or generation of their own innovations, and both options result in new or improved products and eventually enhanced farm revenues.

Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan

“…Innovation orientation (IO) has been found as a driver of business productivity and an accelerator of economic growth [68,69]. IO involves transformation of knowledge to create new products, services, and businesses [70]. The significant relationship between business outputs and innovation orientation has been revealed extensively [71,72].…”

The influence of multi-stakeholder platforms on farmer innovation and rural development in emerging economies : Examples from Uganda

“…The first methodological implication involves the measurement of farmers' EO, and specifically risk-taking, in the context of rural Uganda. Relative to the measurements of farmers' EO in other international contexts (Matsuno et al, 2002;Verhees et al, 2011)-including Indonesia (Etriya Etriya et al, 2018), Ivory Coast (Yessoufou, 2017) Third and last, this study reveals the importance of accessing resources (such as labor) and networks relative to farmers' EO. Importantly, we found that farmers' access to networks represents by far the strongest driver of product and market innovation.…”

“…Given this definition, this study hypothesizes that farmers' entrepreneurial orientation may play an important role in explaining why some farmers may innovate more than others even when participating to the same MSP. Only one recent study suggests that the relationship between farmers' EO and agricultural innovation may be significant (Etriya Etriya, Scholten, Wubben, Kemp, & Omta, 2018), yet it was done in a different geographical context and outside the scope of MSPs. As such, assessing the relationships between farmers' EO and agricultural innovation in the context of one MSP addresses a current knowledge gap in the MSP literature, that is, how an important psychological trait may explain the heterogeneity of the influence s MSPs have on agricultural innovation in different farmers.…”

“…Accordingly, recent studies have adapted the measurement of individual-level EO to the contexts of rural Philippines , Indonesia (Etriya Etriya et al, 2018), Ivory Coast (Yessoufou, 2017), and…”

“…So far, the literature on farmers' EO has focused on its impact on absorptive capacity (Gellynck et al, 2015) and farm business performance (Matsuno et al, 2002;Verhees et al, 2011), but hasn't yet addressed its relationship with product, process, and market innovation. Furthermore, only a few studies so far have assessed farmers' EO in the rural context of developing countries (Etriya Etriya et al, 2018;Gellynck et al, 2015) and, to the best of our knowledge, only one (Yessoufou, 2017) has done so in the Sub-Saharan African context.…”