Value creation and appropriation through the Hungarian SME’s food chain

Value creation is the result of the continuous innovation activity of the entrepreneur, which is carried out mainly in form of open innovation among the agri-food SMEs. However value creation is not the ultimate goal of the enterprises. They are more interested in increased appropriation of the created value. Although the value creation (innovation) is very well explored and cultivated area of research, there are some voids in the field of agriculture and food industry: the behavioural aspect of open innovation is very rare. The value capturing is even much less studied, therefor our research approach is largely explorative one. Data are drawn from a survey carried out in Hungary among the agri-food SMEs in 2014. We use Structural Equation Modelling as well as ordered probit and semi-non parametric ordered probit models for analysing the data. Our results show that there is positive relationship between the knowledge sharing with chain partners and the innovativeness. We could explore that size of the firm, absorptive capacity and openness to foreign trade ambiguously affects value capturing. However trust in chain partners, reciprocity in knowledge sharing with chain partners and willingness to cooperate with buyers positively influence the appropriation of the created value.

Patterns of dynamic changes in supply management – a triadic approach

Research has followed a network perspective of supply management from as early as the publication of Krajlic matrix. This portfolio approach is still static. Recently the triad is interpreted as the smallest unit of a network through which dynamics can be studied. Analyzing triads seems to be a promising way through which a deeper insight into the dynamics of supplier development can be gained. Using case study approach the paper investigates this dynamics with a special emphasis on coopetitive behavior. Analyzing a triadic sourcing setting operating in a make to engineer (and order) environment we show the importance of governance.