Building ordinary capabilities for Agtech performance: the role of knowledge ecosystems in Brazil and France

Abstract

Knowledge ecosystems are collaborative environments that bring together universities and research centers (URCs) and new technology-based firms (NTBFs) to develop innovations in a pre-competitive setting. URCs act as seedbeds for NTBFs by providing essential knowledge and resources. Due to their limited resources, NTBFs often need to establish knowledge flows with URCs to complement their resource base and ensure growth. Despite the significance of URC knowledge transfer for NTBFs, it is still unclear how URCs support the development of ordinary capabilities in these firms through various knowledge transfer processes and how these capabilities affect business performance. To address this gap, this study focuses on agtechs, a specific type of NTBF that provides innovative technologies and solutions in the agribusiness and food sectors. This research examines how different knowledge transfer mechanisms assist agtechs in building the ordinary capabilities they require and how these resources are configured to improve firm performance. The study analyzes NTBFs from Brazil and France, two significant players in the agribusiness industry, with different institutional environments that can influence knowledge transfer and entrepreneurial activities. Based on a sample of 48 agtechs from Brazil and 52 from France, the study’ results contribute to the literature in two ways. Firstly, it demonstrates that URC knowledge transfer cannot be considered a homogeneous entity, as it takes place through multiple knowledge channels, each producing different outcomes at the firm level. Despite agtechs in both Brazil and France relying less on URC knowledge than initially anticipated, two knowledge transfer channels proved to be effective for agtechs in Brazil, while five were effective in France. Secondly, the research identified various combinations of capabilities that improve NTBF performance in both countries, underlining different growth strategies. The study's results highlight the significance of the interplay between capabilities, as no ordinary capability alone can lead to higher levels of performance. By identifying the most effective knowledge transfer channels and the combinations of ordinary capabilities that lead to superior performance, this study provides valuable insights for the Resource-Based View (RBV) and the Knowledge Spillover Theory (KST).