The Role of Location Advantages in Using the Capacity of Agricultural Business Case Study: Agro-Processing Industries in Mazandaran Province

Articles in Press

Authors

1 Department of Agricultural Economics, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University

2 Edith Cowan University, Leibniz Centre for Agricultural Landscape Research

10.22069/jead.2024.22244.1812

Abstract

The purpose of this study is to determine the role of location along with other influencing factors on the status of agricultural processing industries in Mazandaran. Data were collected from 230 managers of agricultural industries via completing questionnaires in 2017-2018. The cluster sampling method was done with the assignment technique. The validity of the research tool was confirmed by experts and its reliability by calculating Cronbach's alpha coefficient (0.71). The studied units are divided into three groups based on the level of utilization of potential capacity: weak, medium and complete, and two-level ordinal logit model has been used to determine the influencing factors. Stata 14 software was used. The findings showed that the contribution of the location variable in the changes in the utilization levels is 10.45%. According to the changes in the share of location, it can be concluded that the individual characteristics explain 61-87% of the changes in the utilization of the potential capacity of the unit. Life of unit, manager education, size of the unit, how to supply the raw materials and initial capital were negative effect on the level of utilization of potential capacity. The results of this research showed that focusing on the internal characteristics of units leads to the achievement of greater efficiency in the transformation and supplementary agricultural industries of Mazandaran province, hence suggestions such as holding training courses, providing facilities, supporting small conversion industries, priority Licensing clause based on type of ownership and type of activity was presented.

Keywords

Main Subjects

Journal of Studies in Entrepreneurship and Sustainable Agricultural Development

Articles in Press, Accepted Manuscript
Available Online from 01 July 2024

Files

Share

How to cite

Statistics