The influence of market and entrepreneurial orientation on strategic marketing choices: the cases of Dutch farmers and horticultural growers

Abstract

Farmers and horticultural growers are expected by society to increase production to meet the demand for food and other agricultural produce, and, simultaneously, reduce negative effects on the physical and social environment. Whether farmers and horticultural growers choose to develop their businesses this way, is not clear. A market orientation (MO) and entrepreneurial orientation (EO) of farmers and horticultural growers is propagated to increase farm profitability and stimulate the economic vigour of rural areas. An MO is a firm owners’ belief that the best way to achieve the firm's objectives is to satisfy customers more effective and efficient than competitors do. An EO is a firm owners’ willingness to innovate to rejuvenate market offerings, take risks to try out new and uncertain products, services and markets, and be more proactive than competitors towards new marketplace opportunities. However, it is not clear how MO and EO influence farmers’ and horticultural growers’ choices about how to develop their business. In this study a model is developed with hypotheses about the influence of EO and MO on strategic marketing choices of farmers. The model is tested on a sample of 588 Dutch farmers and horticultural growers. Four strategic groups were identified. A strategic group is a group of firms that have made similar choices about how to develop their business. Results show that higher levels of EO and MO are found in strategic groups that emphasise cooperating with buyers, increasing prices, and starting new activities. Lower levels of EO and MO are found in strategic groups that emphasize reducing costs and decreasing debts. EO and MO, however, have different influences on individual elements of strategy.

Entrepreneurial Orientation and Social Capital in Pricing Strategy: a Case of Small Enterprises in East Java

“…The positive effect of entreprenurial orientation on pricing strategy found in this current study support findings in Eggers et al (2012) and Verhees et al (2012). In addition, goal sharing among workers enhances strategy in marketing program, which is in line with Castro et al (2015) and Autio et al (2005).…”

“…Amongst all, Eggers et al (2012) is the one that directly shows the relationship between entrepreneurship orientation and marketing strategy, with a finding that innovation is a key entrepreneurial orientation in enhancing marketing strategy for small firms. In addition, Verhees et al (2012) supports the argument that entrepreneurial orientation closely affects strategic marketing choices.…”

Social Competence in Small Firms—Fostering Workplace Learning and Performance

“…Both constructs are known to have a significant influence on firm performance (Kirca, Jayachandran, & Bearden, ; Lumpkin & Dess, ) including the agri‐food sector (Grande, Madsen, & Borch, ; Verhees, Kuipers, & Klopcic, ; Verhees & Meulenberg, ). Entrepreneurial orientation is defined as the owner‐managers’ “willingness to innovate to rejuvenate market offerings, to take risks, to try out new and uncertain products, services and markets, and to be more proactive than competitors towards new marketplace opportunities” (Verhees, Lans, & Verstegen, , p. 168; Wiklund & Shepherd, ). Market orientation refers to the owner‐managers’ propensity to adopt the marketing concept.…”

The Impact of Harmonious Culture and Entrepreneurship Training on Loan Repayment Performance at Microfinance in Indonesia

“…The second module was about entrepreneurial skill consisted of willingness to take risks and be innovative and pro-active (Verhees et al, 2012;Wiklund et al, 2009). The third module was about market orientation skills and focused on how to set sales, profit and market share objectives (Alby et al, 2011;Chen et al, 1998;Edgcomb, 2002;Oosterbeek et al, 2010;Otero-Neira et al, 2013;Verhees et al,2012).…”

“…The second module was about entrepreneurial skill consisted of willingness to take risks and be innovative and pro-active (Verhees et al, 2012;Wiklund et al, 2009). The third module was about market orientation skills and focused on how to set sales, profit and market share objectives (Alby et al, 2011;Chen et al, 1998;Edgcomb, 2002;Oosterbeek et al, 2010;Otero-Neira et al, 2013;Verhees et al,2012). Harmonious culture consists of parahyangan (harmony with God) that contents pray and honestly; pawongan (harmony with human) that contents activity of work hard, mutual cooperation, mutual love; and palemahan (harmony with the nature) that contents green and clean (Astawa et al, 2013;Astawa & Sudika, 2014;Putu Astawa et al, 2016).…”