Capabilities and Innovative Performance in the Brazilian Agricultural Machinery Industry

Theoretical framework--Firms were approached through the lens of a four innovation capabilities model (development, operations, management and transactions). Previous research about innovation in the machinery and equipment industry was examined in depth to support the results obtained. Practical & social implications of research--Previous research had already identified that the machinery and equipment industry of emerging economies is focused on production-related enhancements. However, the present study demonstrates that this is not sufficient for firms to innovate. As a practical implication, we indicate two paths for agricultural machinery companies to achieve high innovative performance.