THE COMPETITIVE TOOLS AND CAPABILITIES OF MICRO FIRMS IN THE NORDIC FOOD SECTOR - a comparative study

This paper focuses on capabilities and strategic competitive tools implemented by niche-oriented micro firms in the food sector. During last decade, establishment of new food processing ventures has increased in Nordic countries. New potential for food-market entrepreneurship exists especially in the traditional farm sector. Also in the Nordic countries, farmers seek new income sources through starting value-added processing of their own-produced raw material. The rivalry in the food market is, however, intense. Thus, positioning in the food market is a very challenging task for micro firms. This paper describes capabilities as well as distinct competitive positioning in the context of small-scale food processors in Norway, Sweden and Finland. In this study, relations between firms' basic resources, competitive positioning tools, and performance are analyzed. Comparison is made between farm-based enterprises and firms started without a " farm platform ". The empirical analysis is based on survey data from 414 food processing ventures. Comparative analyses reveal similarities and differences between the countries. Implications for micro firm owner-managers and policy makers are discussed. Finally, the paper provides suggestions for future research.