They put more emphasis on marketing, which allows them to build
and maintain their positioning in the market, for example by developing
their own brands. Their scope is broader in terms of products and
processes, not necessarily in terms of geography. They implement
strategy in a more formal and structured manner, employing more
skilled personnel, and this should help them achieve their objectives
on all of the other dimensions. Our model provides the basis for further
research by suggesting how Porter's generic strategies may be applied
to study Latin American agribusinesses but also different ways in
which strategic dimensions may affect each other. The next step should
be to develop specific hypotheses starting fromthemodel and test them
rigorously.
5. Conclusions and implications
This article presents a conceptual framework to study the implementation
of generic strategies by emerging market agribusinesses.
The study develops the model relying on empirical evidence that we
collected directly through repeated face to face interviews with the entrepreneurs
of 17 Latin American agribusinesses. Wethen tested it with
66 firms based in eight countries of the humid tropics of Latin America
and discussed the results by integrating themwith the qualitative information
we collected through interviews.
The study finds that innovation capabilities, marketing skills, and
agribusiness scope are the three key dimensions setting apart an agribusiness
firm that competes using a DS from those implementing
cost leadership strategies or that are stuck in the middle (NODS).
Both innovation capabilities and marketing skills have a direct effect
on the way a firm is perceived by its clients, and thus also on the clarity
of its positioning in the market. By developing new products a firm
can generate new value for customers and thus differentiate itself
from competitors. By marketing a firm can ensure its innovation efforts
are perceived in terms of higher value by customers, whether as new
products or superior quality. Agribusiness scope can also be perceived
by customers if a firm diversifies its range of products, strengthening
its brand and position in a given market — for example offering not
only milk, but also cheese and yoghurt.