Innovation capabilities and governance in the agri-food sector

Company performance is increasingly dependent on continuous improvement and innovation. In order to manage innovation projects effectively, a number of internal and external business capabilities are important: The results of this study show that functional, and in particular integrative firm capabilities play an important, but indirect, role in managing in-house innovation projects effectively. Integrative (communication) capabilities are important to combine the different functional capabilities, achieving higher product superiority and offsetting the negative effect of novelty of the project for the company on the adequateness of functional capabilities. External orientation and internalization of external resources and capabilities may enforce food producers to increase their ability to deal innovation project novelty for the company. Increased attention to the end-consumer may increase the market potential of innovations in this sector. Externally-oriented integrative capabilities are important for the organization of access to external knowledge, increasing assimilation of external knowledge and innovativeness of the company. In the case of pig farmers, this organizational capacity includes frequent networking with a number of key actors, identification of the main sources of new knowledge about innovations in the sector and participation in meetings organized by the sector. In addition to the capacities to integrate internal and external knowledge, innovation performance can also be enhanced by the benefits of co-innovation. The study shows that in dynamic processes, such as innovation and collaboration, the complementary nature of the extra-contractual formalization, rational and attitudinal commitment and trust is important to assure knowledge mobility and stability of the co-innovation network, maximizing the benefits of the co-innovation.