The importance of innovation adoption and generation in linking entrepreneurial orientation with product innovation and farm revenues

The case of vegetable farmers in West Java, Indonesia

Journal Article (2018)
Author(s)

Etriya Etriya (Wageningen University & Research)

Victor E. Scholten (TU Delft - Economics of Technology and Innovation)

Emiel F.M. Wubben (Wageningen University & Research)

Ron G.M. Kemp ( Erasmus Universiteit Rotterdam)

S.W.F. (Onno) Omta (Wageningen University & Research)

Research Group
Economics of Technology and Innovation
DOI related publication
https://doi.org/10.22434/IFAMR2017.0038
More Info
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Publication Year
2018
Language
English
Research Group
Economics of Technology and Innovation
Issue number
7
Volume number
21
Pages (from-to)
969-988
Downloads counter
219
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Institutional Repository
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Abstract

The growth of modern agrifood markets, especially in Indonesia, has stimulated entrepreneurially oriented farmers to seize business opportunities through innovation. This paper aims to investigate in a dynamic agrifood market if entrepreneurial orientation enhances innovation adoption and generation and if both of these actions enhance product innovation and, eventually, farm revenues of vegetable farmers in West Java, Indonesia. The findings demonstrate that entrepreneurial orientation enhances innovation adoption and generation, which in turn enhance product innovation. Finally, product innovation enhances farm revenues. The findings contribute to a better understanding of the role of innovation in facilitating entrepreneurially oriented farmers to perform better when facing a dynamic market. Entrepreneurial orientation enables farmers to innovate by taking risks to anticipate future demand, through either adoption of available innovations or generation of their own innovations, and both options result in new or improved products and eventually enhanced farm revenues.