Size and interorganisational relationships in the Canary Islands' food industry

Abstract

PurposeThe objective of this study is to identify firms with a greater propensity to establish interorganisational relationships, as well as which value‐chain activities are affected by these relationships in the Canary Islands' food industry.Design/methodology/approachThe firms are grouped into large firms and small to medium‐sized enterprises (SMEs), given the different resource endowments and dependencies of these two groups. Differences in the degree of flexibility or rigidity of their interorganisational relationships and in the activities affected by these relationships were expected. The fieldwork used a survey of the managers of a representative sample of 201 food firms, and univariate analysis statistical techniques were used to handle the data.FindingsThe paper finds that only 53 sample firms have developed interorganisational relationships, and 62.5 per cent of these are large firms. The flexible interorganisational link predominates. With regard to the value‐chain activities affected by these relationships, the most prominent are distribution and supplies, although size only has a statistically significant relation with some support activities.Research limitations/implicationsThe small proportion of food firms that have carried out interorganisational links in the Canaries means that the findings obtained cannot be entirely generalisable to the rest of the firms in the sector.Practical implicationsMost studies of the food industry take a macroeconomic approach, and research taking a strategic and interorganisational perspective is scarce.Originality/valueThis type of study centring on this particular strategic behaviour has not been carried out before in the Canary Islands.