Abstract

This study employs resource advantage theory to identify how beef cattle value chain actors’ resources are translated into the positional advantage and how that then affects their financial performance in an emerging country context. The study tested was designed to understand if: (1) the resources of beef cattle value chain actors are positively related to positional advantage; and (2) positional advantage is positively related to the financial performance of the actors within the value chain. The unit of analysis in this study is a single beef cattle value chain. One hundred and ninety value chain actors were interviewed and the findings appear to indicate that chain actors’ resources are an antecedent to positional advantage in the marketplace and that this market advantage is an antecedent to the superior financial performance of beef cattle value chain.

Introduction

Positional advantage is gained by exploiting resources and capabilities to create superior performance (Day & Wensley, 1988). Positional advantage mediates the affiliation between competitive advantage and venture performance (Martin, Javalgi, & Cavusgil, 2016); and between market orientation and new product performance (Hao, Guo, Wang, & Saran, 2014). The construct of positional advantage, gained by a superior market orientation, and the capacity to learn about, innovate and exploit entrepreneurial opportunities positively affects business performance (Hult & Ketchen, 2001; Hunt & Lambe, 2000; Micheels & Gow, 2012). Research on positional advantage in agribusinesses in transitional nations and emerging economies is scant (Micheels & Gow, 2012). Ellis (2005) identified this research gap when he suggested that it would be useful to conduct market orientation and positional advantage studies in transitional developing countries,1 where firms engage in marketing research to offer better prices, delivery times, and customer services compared to rivals to achieve the better performance in the marketplace. Further, Bathgate, Omar, Nwankwo, and Zhang (2006) and Sheth (2011) have questioned the application of the market orientation concept in transitional and developing economies. Notwithstanding, a substantial body of research reveals the relationship between resource, positional advantage and business performance in agricultural production (Grunert et al., 2005; Johnson, Dibrell, & Hansen, 2009; Ross & Westgren, 2009), but there has been a lack of empirical application of resource advantage theory in agribusiness research.