Measuring Sustained Competitive Advantage for a Sample of Kansas Farms

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This paper examined sustained competitive advantage for a sample of 377 Kansas Farm Management Association farms with continuous data from 1988-2007. Technical, allocative, scale and overall efficiency indices were calculated for each farm and year. Approximately 30 percent of the farms exhibited significantly above average overall efficiency levels. These farms had a competitive advantage. Conversely, approximately 28 percent of the farms exhibited significantly below average overall efficiency levels or had a competitive disadvantage. The farms with a competitive advantage were significantly larger in terms of value of farm production and acreage, had significantly lower expense ratios and significantly higher profit margins.

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http://hdl.handle.net/123456789/601296

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https://ageconsearch.umn.edu/record/189854/files/305_Yeager.pdf

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University of Minnesota