Understanding The Formation of Networks by Small Agricultural Firms

Abstract

It is recognised that participation in networks in the agro-food chain provides farmers important opportunities to innovate. This is particularly important for small agricultural firms because these organisations face barriers that prevent them from innovate by means of some specific sources that are available in other industries. Surprisingly, no research has been developed to understand what motivates farmers to be involved in these networks. The paper fills this gap by proposing a decision making multivariate model. A probit analysis based on the proposed model revealed that farmers’ decision on participating in networks depends on goals and socio-psychological variables.

Keywords: Network innovation, Smal agricultural firms, Multivariate model