Boosting innovativeness in organic farming: the role of external relational capital

Abstract

Purpose Following the contextual approach to intellectual capital, this study analyzed the specific types of external relational capital that foster product/service, process and managerial innovativeness in organic farming as key drivers of sustainable food production. Design/methodology/approach Survey data from 358 organically certified Spanish farmers were analyzed using structural equation modeling based on partial least squares. A total of three models, one for each type of innovativeness, were developed to analyze the impact of external relational capital. These models took into account four specific types of relational capital: vertical relationships, horizontal relationships, relationships with government institutions and relationships with knowledge-intensive institutions. Findings Although relational capital and innovativeness are clearly underdeveloped, knowledge generated through and embedded in external relationships plays a substantial role in promoting innovativeness in organic farming. Moreover, depending on the type of innovation to be developed, the type of external relational capital that is relevant differs. Practical implications This study's findings indicate that organic farmers prioritize process innovation over product/service and managerial innovation. For the latter categories, building relationships with customers, consumers and government institutions is key. Policymakers should encourage farmer-engaging socialization spaces that emphasize family farms and their knowledge contribution. Originality/value Past studies have examined the overall degree of association between external relational capital and innovation, often overlooking the nuances of contextual factors. In contrast, this research delves into the unique contributions of knowledge sourced from various external relationships, focusing specifically on how these relationships influence different types of innovation within the specific context of organic farming.