Growth-oriented new agricultural ventures: the role of entrepreneurial resources and capabilities under convergence forces

Abstract

Using a multilevel approach, this study examines how new entrants’ resources, capabilities and context influence growth-oriented new agricultural ventures. Results indicate that growth orientation is largely self-determined. The knowledge base of the new entrants, their social ties with entrepreneurs, together with the capabilities to identify and exploit opportunities, as well as those to effectively offer new products, trigger these growth-oriented ventures. Industry contexts also influence them, as those operating in less agriculturally competitive countries have a greater probability of becoming growth-oriented, suggesting convergence forces. Lastly, results reveal that competitiveness positively moderates the relationship between product innovation capabilities and growth orientation.