Innovation capabilities in agribusiness: evidence from Brazil

Abstract

Purpose This paper aims to identify the winning combination of innovation capabilities for selected Brazilian agribusiness firms along different value chain links. Design/methodology/approach Adopting a quantitative approach, the authors analyzed the relationship between innovation capabilities and innovative performance of 300 agribusiness firms through a multi-regression technique. Findings The results showed that transaction, management and development capabilities can improve agribusiness firms’ performance in underdeveloped value chains. Research limitations/implications For future research, the authors recommend analyzing further links such as traders and retailers to find the innovation capability for the entire agribusiness value chain. Practical implications Upstream firms should adopt new management techniques and tools, efficiently using their resources, while downstream firms should absorb and transform new technologies into products and processes. Social implications The authors suggest formulating public policies that propose the recombination of innovation capabilities to organize agribusiness firms and avoid commodity-oriented market dependence. Originality/value The literature on agribusiness explains innovation at the chain level, based primarily on scientific advancements rather than on innovation at the firm level. In this sense, this study provides empirical evidence that can help boost innovation in agribusiness firms.