Abstract
Purpose
This study identifies how Brazilian agricultural machinery manufacturers combine different capabilities to innovate. This industry has the potential to increase productivity in agriculture, a sector that is notably relevant in Brazil, one of the main food and agricultural commodities producers in the world.
Theoretical framework
Firms were approached through the lens of a four innovation capabilities model (development, operations, management and transactions). Previous research about innovation in the machinery and equipment industry was examined in depth to support the results obtained.
Design/methodology/approach
To identify the combinations of innovation capabilities, the fuzzy-set QCA (comparative qualitative analysis) technique was applied. Data were collected through a survey, conducted with 103 Brazilian companies.
Findings
Agricultural machinery manufacturers innovate through two combinations of capabilities: development, operations and management (DC*OC*MC), or operations and transactions (OC*TC). Innovation emerges when excellence in manufacturing is complemented by improvements in existing products and in managerial processes (DC*OC*MC), or in negotiation skills and commercialization processes (OC*TC).
Practical & social implications of research
Previous research had already identified that the machinery and equipment industry of emerging economies is focused on production-related enhancements. However, the present study demonstrates that this is not sufficient for firms to innovate. As a practical implication, we indicate two paths for agricultural machinery companies to achieve high innovative performance.
Originality/value
Research about innovation in the machinery and equipment industry generally aims to only understand how firms develop new products and production processes. This study fills a gap by approaching this industry through broader lenses, demonstrating the relevance of new managerial and transactional process development for these firms.
Keywords:
Innovation; innovation capabilities; machinery and equipment industry; agricultural machinery; fsQCA