Branding advantage of agri-food companies in competitive export markets: a resource-based theory

Abstract

PurposeThe purpose of the present study is to investigate the antecedents of export performance and branding advantage, as a key type of competitive advantage in export markets among entrepreneurs and managers of agri-food exporters.Design/methodology/approachA sample of entrepreneurs from 182 exporting firms of the agriculture and food industry participated in a cross-sectional survey. The data were collected by a self-reporting questionnaire and partial least squares were used to analyse the data and assess the path model.FindingsResults revealed that experiential resources strongly promote communication capabilities. Also, communication, distribution and product development capabilities contribute to the creation of the branding advantage in export markets. In addition, a positive relationship between the branding advantage and export performance of agri-food products is confirmed.Research limitations/implicationsThe study targets exporters of agri-food products. Hence, the results should be interpreted regarding the context of low-technology firms. Further, this paper delineates branding advantage considerations that managers need to account for to achieve effective exporting. Practitioners can efficaciously exploit resources to achieve a competitive advantage, considering that they focus on building capabilities, and in particular, communication capabilities.Originality/valueThe present study highlights the role of the branding advantage as an important type of competitive advantage in international entrepreneurship and export markets. It attempts to examine the combined relationships of resources and capabilities with branding advantage and export performance.