The strategic role of intellectual capital components in agri-food firms

Abstract

PurposeRecent socioeconomic events, not least the Covid-19 pandemic, have led farms to rethink their traditional production methods. Innovation, new technologies and the establishment of relationships could be crucial for farms to remain competitive and sustainable over time. These factors can be assumed as structural and relational capital, two of intellectual capital's components. In this stream, the aim of this paper is to analyze how structural and relational capital could contribute to farm's sustainability in terms of competitiveness during its normal life cycle and in terms of resilience during an uncertain period, such as the coronavirus emergency.Design/methodology/approachThe paper is supported by the qualitative methodology of a single case study. To reach the declared goal, the paper applies the C.A.O.S. (Characteristics, Ambience, Organizations, Start-up) model, an interpretative model for analyzing the small and medium enterprise dimension. In this way, the main aspects that allowed the farm to be competitive and to react at the emergency period were described.FindingsThe findings show that innovation technology involved the farm's internal processes, improving execution, control and feedback phases. Thanks to the two main introduced innovations, the farm reduced staffing costs and minimized cultivation risk related to climatic factors. These innovations are the main factors allowing the farm to increase its efficiency. Moreover, the proactive and reactive roles of the structural and relational capital to face the emergency period are confirmed.Originality/valueThe paper contributes to the literature in several ways. Regarding innovation literature, the paper shows how technology helps farms to improve their performance and their global competitiveness. Insight into structural and relational capital enhances the knowledge of intangible assets, such as intellectual capital. In the light of the Covid-19 emergency, the work demonstrates how the main resilience factors (proactive, i.e. structural capital, and reactive, i.e. relational capital) ensure the farm's survival.

Technological orientation and organizational resilience to Covid-19: The mediating role of strategy's digital maturity

“…In the context of the Covid-19 pandemic, some studies (e.g., Abidi et al, 2022 ; Giotopoulos et al, 2022 ) have stressed that technology and, in particular, ICTs have played a key role in responding to the crises, which likely underestimates the impact of digital strategy on ICT investment and innovation. In answering the call for more research, Paoloni et al (2021) and Verma and Gustafsson (2020) aimed to shed light on the role played by digital strategies when dealing with the pandemic. CB-SEM and mediation analyses were performed in this study to test the relationship between a firm's TO and its RTC.…”

“…This perspective contrasts with reverting to an initial condition that is unable to cope with the first shock ( Sakurai and Chughtai, 2020 ) and has been largely under explored ( Floetgen et al, 2021 ). Furthermore, recent research has highlighted the need to investigate the impact of resilient strategies for dealing with the shocks caused by Covid-19 ( Paoloni et al, 2021 ; Verma and Gustafsson, 2020 ).…”

Does green intellectual capital affect green innovation performance? Evidence from the Spanish wine industry

“…The role of IC is considered increasingly important in achieving the economic, social and environmental objectives of organizations (Paoloni et al ., 2021). In fact, several studies have pointed to the existence of a positive and significant relationship between the set of intangibles possessed by the organization and CSR activities (e.g.…”

Innovation for agri-food firms

“…These issues are further investigated by Paoloni et al (2021) in a case study of an SME saffron farm based in Calabria, southern Italy. The authors deploy an adaptation of the CAOS framework to show how the farm has become more competitive and sustainable through a shift away from conventional approaches to a strategy based on innovation through technology adoption and relationship building.…”