Value maximization and open innovation in food and beverage industry: evidence from US market

The purpose of this paper is to examine listed companies, grouped by sector, that for decades have shown a dividend growth. Referring to the food and beverage (F&B) industry, the authors have investigated the adoption of an open innovation model in order to fill a gap in the existing literature.

This paper uses a multi-method design linking qualitative and quantitative approaches. The quantitative study was planned in order to identify some US-listed companies, called Dividend Champions that have distributed consistently growing dividends for over 50 years and have beaten the markets. The qualitative study was designed to provide insight into the adoption or not of an open innovation model by the listed companies in the F&B industry in the US market that were selected by the quantitative analysis.

The research is based on an empirical analysis undertaken with 816 listed companies in US markets. In particular, the authors underline 20 companies that over the past 50 years have systematically increased dividend paid, and at the same time, have beaten the market (Standard & Poor’s 500). In all, 30 per cent of the selected companies belong to the consumer goods sector, and F&B companies represent 50 per cent of them. All of these companies (The Coca-Coca Company, Hormel Foods Corporation, and Lancaster Colony Corporation) implement an open innovation model.

To the authors’ knowledge, this is the first exploratory study based on value maximisation and open innovation. An open innovation model increases competitiveness and the durability of competitive advantage, which are main sources of value creation. The paper highlights evidence from the F&B industry, referred to as Dividend Champions, and the adoption of an open innovation model.