Innovation in food firms: contribution of regional networks within the international business context

Abstract

This paper explores the role of regional networks in processes of innovation within an international business context. It is hypothesized that firms participating in regional networks demonstrate a stronger innovation competence. Data are drawn from a survey among food firms in the region of Meetjesland, Belgium, and reflect the relation between the firm and a number of regional characteristics. After restructuring the data through factor analysis and cluster analysis, the important role of regional networking is revealed using discriminant analysis. The analysis marks out two factors having the strongest power to discriminate between the clusters: firms are classified as having a stronger innovation competence when networking within the region, and when orienting towards the international market. Results demonstrate that internationally operating firms benefit from regional networking. Further, it is argued that regional networking is not contradictory to an international market orientation, and that firms gain innovation competence by searching for external knowledge on different geographical scales. As these networks have the potential to enhance the innovation competence of firms, support to regional networking is promoted as a policy tool.

Keywords:

• region
• internationalization
• innovation
• networks

Notes

Notes

1. Primary sources involve in-depth interviews with relevant stakeholders such as entrepreneurs, specialists in regional development and sector federations. Secondary sources involve research- and policy documents on the food industry in Meetjesland and Flanders by the Central Business Council (CRB), Flemish Council for Research Policy (VRWB), Socio-economic Council Flanders (SERV), Regional Platform Meetjesland, Food Meetjesland and the Province of East-Flanders and statistical data from the NIS (National Statistical Institute), NBB (National Bank), BEL-First and from regional development organizations.

2. The respondents was asked to score the following variables (See Table 5) on a 5-point Likert scale, measuring their relation with the regional food chain, regional networks and food facilities. The mean scores range between minimum 1 and maximum 5.

3. For example, Lotus Bakeries (cake & biscuits), Ter Beke (meat products), Imperial Meat Products (meat products).