The Relationship Between Strategic Choices and Performance in Italian Food SMEs: A Resource-based Approach

In the context of progressive rise of the competition among firms, due to the increasingglobalisation, it is interesting to understand the potential sources of competitive advantage in order to set upa successful strategy. The theory of Resource-based View used in this framework examines the connectionamong internal resources and strategic choices, and how the latter affect firm performance. The firmstrategy is determined by available resources and capabilities which are deployed to obtain a goodperformance. Therefore, strategic choices act in between resources and performance. The purpose of thepaper is to evaluate the relationship between strategic choices and performance achieved by food SMEs,based on a set of distinctive resources. This approach is assessed in food SMEs located in Italy, by applyinga Structural Equation Model. The results of the empirical analysis showed that, in the food sector, strategicchoices based on innovation, product positioning, and chain relationship development have positive effectson performance, but only if distinctive resources and capabilities are considered. Innovation plays a capitalrole because of its direct as well as indirect effects.