How do food and agribusiness companies select their product innovation projects?
Abstract
Although executives acknowledge the strong link between innovations and performance, they are still challenged by crossing the bridge from great ideas to revenue. The objective of this research is to understand better the innovation process in the food and agricultural sector, define more clearly the selection process agribusiness companies go through, draw a picture of a portfolio of a food and agribusiness company, and identify the main drivers in the selection process of innovation projects. This dissertation adds to the management literature by studying a different sector, the U.S. agricultural sector and by proposing a novel methodology, a choice experiment. A case study, an exploratory phase, and a survey of about 100 companies, indicate that the food and agribusiness sector tends to use cross-functional teams and several selection methods when they select innovation projects. Criteria such as return, time to market, capability, costs already incurred, and risk of technical/regulatory failure guide their selection. This selection process yields to a diversified portfolio in terms of potential for return, time to market, and costs already incurred. In addition, companies tend to be biased towards in-house and low risk projects. Company and industry characteristics' effects on the results are limited. It is important to note that this dissertation does not study the effect of these practices on performance, which is a necessary follow-up.
Degree
Ph.D.
Advisors
Gray, Purdue University.
Subject Area
Food Science|Management
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