Entrepreneurial Innovation and Performance in Forestry

Abstract

Farmers have been fully motivated and their attitude and recognition to entrepreneurship have been strengthened with the reform of collective forest right in the forest zone in China in recent years. It has important significance to encourage farmers to take part in entrepreneurial activities in the forest zone in China, and it requires farmers, related companies, and government work together to improve the performance of entrepreneurship. This chapter tests the relationships of innovation consciousness, proactiveness, risk taking, and performance of farmers with an investigation data and then builds cooperation mechanism of forest farmers and companies. The empirical results show that consciousness and proactiveness have positive influence to the performance of farmers, and risk taking has no influence to the performance of farmers. And then, this chapter builds a contingent mechanism between firms and farmers consisting of two mechanisms: control right mechanism and overlook mechanism. The control right mechanism refers to whether a party has the right to make decision and the overlook mechanism refers to effectively reducing the organizer's private profit. Based on the empirical results, with circumstances of China and the cooperation mechanism which this chapter built, this chapter analyzes the entrepreneurial activities of farmers and the link of the cooperation with companies and gives some suggestions on improving the performance of farmers and the efficiency of the cooperation of farmers and companies. At the same time, this chapter analyzes the function of government and gives suggestion that farmers should choose entrepreneurial projects which the government supports because the government provides interest-free loans, technology service, etc. to these projects usually.