The number of farmers’ markets has been growing across Canada in the past decade (Dukeshire et al. 2014). A recent study of consumers at farmers’ markets in Toronto, Ontario, found that consumers use farmers’ markets not only to fulfil specific grocery needs but also to support local agricultural firms (Dodds et al. 2013). Hence, sales in Ontario farmers’ markets by primary producers were estimated to be between $385 million and $577 million annually in 2010, up from an estimated $73 million in 1999 (Cummings et al. 1999; Regional Analytics and Planscape 2011). Innovative and entrepreneurial agricultural firms may aspire to improve performance by marketing their production in a manner that takes advantage of these trends. For example, farms in Ontario market their production direct to consumers through not only farmers’ markets but also on-farm markets and roadside stands, community-supported agriculture and boxing schemes, and on- and off-farm events. It is estimated that these additional outlets account for 25% of direct sales while farmers’ markets account for 75% (Schumilas 2010). Given the increased use of direct and alternative marketing channels in Ontario, a greater understanding of the factors that drive current and expected success within these alternative marketing channels seems warranted. The move to direct and alternative markets may signal that firms are not satisfied with current levels of performance achieved through more traditional channels and are therefore searching for other means to improve performance (Levinthal and March 1993; Mount 2012). In the search for new profit opportunities, firms may modify product offerings or production practices to differentiate their production from that of other firms. For smaller firms, innovations in how the product is marketed may be more scaleappropriate and more likely to lead to improved performance (Moser et al. 2011). However, as the number of farmers’ markets has increased (Dukeshire et al. 2014) along with the number of farms selling a portion of their production through farmers markets (Uematsu and Mishra 2011), these farm businesses need to further differentiate themselves from competition for continued success. In this sense, farm-based businesses who have moved into direct and alternative marketing channels may now face greater levels of competition compared to early adopters within these channels. This would suggest that the resources and capabilities that have been important in determining success in other small businesses may now be important in determining success of farm-based direct marketing ventures. However, as these farm businesses often start out as traditional farms, the level of human and relational capital that has been invested in developing resources to identify new opportunities in product or market spaces may be rather limited. As these markets become increasingly competitive, firms that are more quickly able to identify and respond to market needs may have improved performance outcomes.