The impact of entrepreneurial orientation on innovation adoption and innovation generation, and ultimately performance of vegetable farmers in West Java, Indonesia

Abstract

In emerging high value markets, farmers are challenged by growth options. They can benefit from the growth options depending on their entrepreneurial orientation and how they engage in product quality improvement through adopting and generating innovations. Our study investigates the combined effects of entrepreneurial orientation and innovation adoption and generation on farm performance. Using Structural Equation Modeling we tested the relationships among 282 vegetable farmers in West Java, Indonesia. The findings show that entrepreneurial orientation positively affects innovation inputs, innovation adoption and innovation generation, and innovation adoption has a positive effect on performance. We conclude with recommendations for farmers and policy makers to emphasize innovation adoption to promote farm performance