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Abstract
Research in agriculture and other industries has shown that innovativeness is a key driver of improved
performance measures of small and medium-sized enterprises. The willingness to change current practice
may be a function of the level of experience of the manager as well as the manager’s commitment to
learning. Firms with more experience may suffer from confirmation bias and therefore may not see the
performance benefits that stem from innovative activities. Using data from a survey of 285 beef producers
in Illinois, this study employs cluster analysis to segment firms along experience and learning variables.
Using a non-hierarchical clustering procedure, four clusters emerge. The study employs one-way
ANOVA tests to examine differences in market orientation, innovativeness and satisfaction with several
performance measures across clusters. Results indicate firms with a commitment to learning have a greater
propensity to seek out market information, a greater willingness to accept innovations and are more
satisfied with overall performance. The paper concludes with some implications for managers and policy
makers.