Extra-Core Production and Capabilities: Where is the Food Industry Going?

Through the lens of resource-based theory, this study examines the extra-core food industry capabilities needed to diversify secondary production (heterogeneity) in order to overcome entry barriers into destination markets (mobility). Using a well-structured database of Eurostat supply tables (EU-27), results demonstrate: a) entering a food core business need not be difficult for newcomers; b) The EU Food Industry has capabilities to undertake extra-core business activities below the average of the EU-27 system; and, c) the food industry’s secondary production is too heterogeneous and distributed over a wide range of activities. This study highlights productive trends, hypothesizing capacity needs and creates the necessary framework for further investigation.