The innovation capacity of small food firms in Italy

Abstract

Purpose The purpose of this paper is to analyze the innovation capacity of small and medium enterprises (SMEs) and micro enterprises through a theoretical framework that addresses the influence of some internal and external resources – derived from the literature review – on the development of innovation activities and on innovative firm’s results. Design/methodology/approach Based on a structured questionnaire, the empirical survey has involved 122 SMEs and micro enterprises of the most representative agrifood supply chains in the Campania region: dairy, wine, pasta and olive oil. The data have been then elaborated through the cluster analysis technique in order to explore any meaningful patterns that may exist in terms of the innovation capacity. Findings This study shows the existence of three clusters/innovation modes: collaborative innovators (CIs), non-collaborative innovators (NCIs), and non-innovators (NIs). Even though CIs represent 16.2 percent of the sample, this cluster shows an increased or stable revenue during 2011-2013 in comparison to the other two clusters. Research limitations/implications This study provides a static view in comparison to the longitudinal analysis which could have provided a more dynamic view of the innovation capacity of agrifood SMEs and micro enterprises. Originality/value This is the first quantitative study focusing on the factors related to the innovation capacity of agrifood firms in the Campania Region. The study specifically analyses the innovation capacity of SMEs and micro enterprises. Moreover, it offers a comprehensive analysis of internal and external drivers to innovation.

What's driving innovation in small businesses in Australia? The case of the food industry

“…; Maietta ; Caiazza and Stanton ; Ciliberti et al . ,b; De Martino and Magnotti ; Sauer ; Wixe et al . ).…”

“…In this study, small businesses that sought debt and/or equity finance were found significantly more likely to innovate. The lack of financial resources suffered by small agri‐food firms influenced innovation, but public funding can boost their innovation capacity (Caiazza and Stanton ; and De Martino and Magnotti ). This result shows the need of small food businesses in Australia for continued government assistance to help sustain their innovation activities.…”

“…(), Baregheh et al . (), Caiazza and Stanton (), De Martino and Magnotti (), and Wixe et al . (), and the results around associations between the above drivers and innovation propensity were similar with most of the ABS cross‐sectional studies on innovation.…”

“…There is evidence that innovation is influenced when businesses collaborate externally. De Martino and Magnotti () found that partnerships between academia and research institutions were crucial in boosting the innovative capacity of small food firms in Italy. Galati et al .…”

“…() applied propensity score matching in the context of causal modelling, using the ABS BCS data, and found a statistically significant association between government assistance and innovation. De Martino and Magnotti () also concluded that public funding is crucial in boosting the innovative capacity of small food firms in Italy.…”