The effect of innovation practices on agribusiness performance: A structural equation modelling (SEM) approach

Abstract

This study investigates how innovation practices including product, process, marketing and organizational innovation affect agribusiness performance such as innovative, production, marketing and financial performance in Ghanaian agribusiness companies. Data were collected through survey questionnaires from 1526 respondents mainly from inputs supplies, production and marketing agribusiness companies. Data were analyzed by principal component analysis (PCA), and exploratory and confirmatory factor analysis. We also employed the structural equation modelling (SEM) in determing the relationships between the variables. The results reveal the positive effects of innovation practices on agribusiness performance. Managerial implications are also discussed.