An analysis of strategic resources in structurally diversified small farm businesses

The purpose of this thesis is to explore strategic resources with the potential to improve the competitiveness of farm businesses. The study was explored within the rural context of structurally diversified farms in Scotland. This purpose is based on the assumption of the resource-based perspectives' that present strategic resources as value-creating resources with the potential to sustainably improve firm viability (Barney, 2011; Teece, 2014). Following a review of rural farm business and resource-based literature, it became evident that opportunities exist for exploiting the growth in local food consumption and that a resource-based approach complements existing studies that are aimed at identifying these opportunities from an entrepreneurial perspective. However, the resource-based approach was limited by its narrow focus on value creation and as such was combined with a market-orientation approach to fully realise the study's purpose. Correspondingly, a suitable combined framework was adapted for the qualitative analysis of the examined farm businesses (n18) and their customers (n20). The main findings of this study identified the strategic resources with the potential to sustainably improve the competitiveness of structurally diversified farm businesses. Also, market segments were identified for farm business customers based on the values that motivate their buying behaviour. The major contribution of the study extends the theoretical scope of value-creation in the resource-based perspectives by incorporating the customer in the value-creation process. Other theoretical contributions were also presented in the concluding section of the study and the implications of the findings are outlined for farm businesses.The purpose of this thesis is to explore strategic resources with the potential to improve the competitiveness of farm businesses. The study was explored within the rural context of structurally diversified farms in Scotland. This purpose is based on the assumption of the resource-based perspectives' that present strategic resources as value-creating resources with the potential to sustainably improve firm viability (Barney, 2011; Teece, 2014). Following a review of rural farm business and resource-based literature, it became evident that opportunities exist for exploiting the growth in local food consumption and that a resource-based approach complements existing studies that are aimed at identifying these opportunities from an entrepreneurial perspective. However, the resource-based approach was limited by its narrow focus on value creation and as such was combined with a market-orientation approach to fully realise the study's purpose. Correspondingly, a suitable combined framework was adapted for the qualitative analysis of the examined farm businesses (n18) and their customers (n20). The main findings of this study identified the strategic resources with the potential to sustainably improve the competitiveness of structurally diversified farm businesses. Also, market segments were identified for farm business customers based on the values that motivate their buying behaviour. The major contribution of the study extends the theoretical scope of value-creation in the resource-based perspectives by incorporating the customer in the value-creation process. Other theoretical contributions were also presented in the concluding section of the study and the implications of the findings are outlined for farm businesses