Understanding innovation in a dynamic agricultural business environment: a multivariate approach

Researchers have identified a number of drivers of innovative capacity in rural areas such as farmers’ participation in social and commercial networks; farmers’ participation in collaborative alliances; farmers’ level of education; and farm-size. The present article extends this traditional research with the objective of determining whether these drivers also favour innovative capacity in turbulent market conditions (i.e. dynamic business environments) caused by policy changes. A probit analysis based on a proposed model of innovation revealed that not all these drivers were significant. Moreover, it was found that the capacity to innovate was also influenced by psychological variables.