Purpose – This study identifies how Brazilian agricultural machinery manufacturers combine different capabilities to innovate. This industry has potential to increase productivity in agriculture, a sector that is notably relevant in Brazil, one of the main food and agricultural commodities producers in the world.
Theoretical framework – Firms were approached through the lens of a four innovation capabilities model (development, operations, management and transactions). Previous researches about innovation in the machinery and equipment industry were deepened to support the results obtained.
Design/methodology/approach – To identify the combinations of innovation capabilities, fuzzy-set QCA (Comparative Qualitative Analysis) technique was applied. Data were collected through a survey, conducted with 103 Brazilian companies.
Findings – Agricultural machinery manufacturers innovate by two combinations of capabilities: development, operations and management (DC*OC*MC), or operations and transactions (OC*TC). Innovation emerges when excellence in manufacturing is complemented by improvements in existing products and in managerial processes (DC*OC*MC), or in negotiation skills and commercialization processes (OC*TC).
Research, Practical & Social implications – Previous researches had already identified the machinery and equipment industry, of emerging economies, as focused on production-related enhancements. However, the present study demonstrates that this is not sufficient to firms innovate. As practical implication, we indicate two routes to agricultural machinery companies achieve a high innovative performance.
Originality/value – Researches about innovation in the machinery and equipment industry generally aim to understand only how firms develop new products and manufacturing processes. The study fills a gap when approaching this industry through broader lenses, demonstrating the relevance of new managerial and transactional processes development for these firms.
Keywords – Innovation, Innovation Capabilities, Machinery and Equipment Industry, Agricultural Machinery, fsQCA
If a paper is approved for publication, its copyright has to be transferred by the author(s) to the Review of Business Management – RBGN.
Accordingly, authors are REQUIRED to send RBGN a duly completed and signed Copyright Transfer Form. Please refer to the following template: [Copyright Transfer]
The conditions set out by the Copyright Transfer Form state that the Review of Business Management – RBGN owns, free of charge and permanently, the copyright of the papers it publishes. Although the authors are required to sign the Copyright Transfer Form, RBGN allows authors to hold and use their own copyright without restrictions.
The texts published by RBGN are the sole responsibility of their authors.
The review has adopted the CC-BY Creative Commons Attribution 4.0 allowing redistribution and reuse of papers on condition that the authorship is properly credited.