The strategic role of intellectual capital components in agri-food firms

Abstract

PurposeRecent socioeconomic events, not least the Covid-19 pandemic, have led farms to rethink their traditional production methods. Innovation, new technologies and the establishment of relationships could be crucial for farms to remain competitive and sustainable over time. These factors can be assumed as structural and relational capital, two of intellectual capital's components. In this stream, the aim of this paper is to analyze how structural and relational capital could contribute to farm's sustainability in terms of competitiveness during its normal life cycle and in terms of resilience during an uncertain period, such as the coronavirus emergency.Design/methodology/approachThe paper is supported by the qualitative methodology of a single case study. To reach the declared goal, the paper applies the C.A.O.S. (Characteristics, Ambience, Organizations, Start-up) model, an interpretative model for analyzing the small and medium enterprise dimension. In this way, the main aspects that allowed the farm to be competitive and to react at the emergency period were described.FindingsThe findings show that innovation technology involved the farm's internal processes, improving execution, control and feedback phases. Thanks to the two main introduced innovations, the farm reduced staffing costs and minimized cultivation risk related to climatic factors. These innovations are the main factors allowing the farm to increase its efficiency. Moreover, the proactive and reactive roles of the structural and relational capital to face the emergency period are confirmed.Originality/valueThe paper contributes to the literature in several ways. Regarding innovation literature, the paper shows how technology helps farms to improve their performance and their global competitiveness. Insight into structural and relational capital enhances the knowledge of intangible assets, such as intellectual capital. In the light of the Covid-19 emergency, the work demonstrates how the main resilience factors (proactive, i.e. structural capital, and reactive, i.e. relational capital) ensure the farm's survival.