Collective Actions, Dynamic Capabilities and Competitive Advantage: Empirical Examination of Minor Export Crop Farms in Sri Lanka

Abstract

Aims: Collective actions in the agribusiness sector take a variety of forms, including farmer cooperatives and supply chain coordination. Literature has acknowledged that agribusiness farms which engage in collective actions generate greater value-add and enhance socio-economic contributions of a country. However, its relative importance along with the dynamic capabilities possessed by farms and subsequently competitive advantage has received very little research attention. This study aims to fill the gap by determining their relationships by employing the resource-based view in combination with the dynamic capability theories. Study Design: Specifically, the minor export crop farm owners involved in the commercial cultivation of cinnamon, pepper and clove in Sri Lanka were surveyed using a personally-administered, structured questionnaire. Results: The results of regression-based path analysis indicate a significant relationship between collective actions and competitive advantage, as well as between collective actions and dynamic capabilities. Conclusion: The study has extended our understanding of the importance of collective actions for the minor export crop farm owners. Research and managerial implications are provided together with future research directions.