A Review of Empirical Researches on the Strategy of Firms in Agriculture

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  • 農業経営学における経営戦略論適用の課題と展望
  • シンポジウム論文 農業経営学における経営戦略論適用の課題と展望 : ステークホルダー関係を考慮した実証に向けて
  • シンポジウム ロンブン ノウギョウ ケイエイガク ニ オケル ケイエイ センリャクロン テキヨウ ノ カダイ ト テンボウ : ステークホルダー カンケイ オ コウリョ シタ ジッショウ ニ ムケテ
  • ステークホルダー関係を考慮した実証に向けて

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Abstract

<p>A goal of strategic management in academia is to clarify the relationship between strategy and performance, namely the organizational effectiveness and persistence of firms. A review, of existing literature reveals that there has been limited empirical research on the effect of strategic management on firm performance. In agriculture, firms provide stakeholder values such as environmental, social and cultural values that reflect on long term persistence. Such stakeholder relationships should be considered when evaluating farm business performance. This paper discusses the findings, methodologies and further prospects of firm strategy through a review of the empirical strategic management literature in international and Japanese academic journals. A model of empirical application in agriculture that considers stakeholder relationships is proposed on the basis of this review and subsequent discussion.</p><p>Among 61 articles on managerial strategies published since 2000 in selected Japanese journals, 53 papers are considered as empirical though one paper should strictly be classified as an empirical estimation. Also, 28 papers referred to firm performance, of which 11 papers use quantitative data while 10 focus on a single case. Such difficulties in empirical approaches exist in part because of an incapability of the same technology assumptions for diversified firms. The main findings on effective strategies can be summarized as i) scale increase and avoiding farmland scattering especially for rice farms, ii) retaining price premiums by quality control and channel selections, iii) employment and appropriate value distribution and iv) accumulating knowledge through education, an external relationship that does not rely only on existing human resources.</p><p>One obstacle for empirical approaches in strategic management is the nature of objective orientation. Another difficulty is the identification of strategic resources, especially nontangible resources such as knowledge and skill. Also, problems in causality can be highlighted due to the endogenous effects on performance through resource accumulation lead by implementing strategies. In agriculture particularly, the industrial characteristics of the large number of small and medium scale farms constrained by natural and biological production conditions have impeded differentiation and product branding. The small organizational scale also is an obstacle to introducing group learning procedures within individual farms.</p><p>A model for empirical application can be started using organizational objectives that consider stakeholder relationships. The strategy is determined based on the objectives that consider managerial resources, stakeholders and external environment. Firm performance is achieved under the effect of strategy, resources, stakeholders and environment. The strategy is amended through the performance evaluation. Such cycles lead to the eventual achievement of objectives. We should note that managerial resources are accumulated through business cycles as well as accruing from the environment and stakeholders.</p><p>Further research is required on identifying strategies, resources and performances. Empirical research on performance can be suggested in both approaches that clarifyies the impact of resource accumulation including stakeholder relationships and focusing on the core competences by accumulating resources.</p>

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