Explaining Family Farm Run Businesses’ Capacity to Develop Dynamic Capabilities

Explaining Family Farm Run Businesses’ Capacity to Develop Dynamic Capabilities

Daniel E. May (Department of Land, Farm and Agribusiness Management, Harper Adams University, Newport, Shropshire, UK)
Copyright: © 2013 |Pages: 14
DOI: 10.4018/ijsem.2013010102
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The present article proposes a conceptual model to determine the dynamic capabilities that can realistically be developed by family farm run businesses. Using a pilot sample of ex-Sugar Beet Farmers of the West Midland region of the UK it was found that these agents have fewer opportunities to develop these capabilities than firms belonging to other industries. In addition, it was found that exiting market barriers prevent these farmers from using the available sources of dynamic capabilities. As a result, it is concluded that family farm businesses are not prepared to maintain their competitive position in response to future policy reforms.
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Literature Review On Dc

The central idea of the DC is that resources can be integrated, reconfigured, renewed and recreated in response to environmental changes in order to reach and sustain competitive advantages. According to Wang and Ahmed (2007), DC are characterised by three components or factors that are common across firms: (i) adaptive capability (AC); (ii) absorptive capability (ABC); and (iii) innovative capability (IC).

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