Assessing Firm Readiness to Adopt Cluster-Based Innovative Projects: A Segmentation Analysis

Abstract

As innovation has garnered substantial attention on corporate success and sustainability, organizations must evaluate internal contexts to determine potential innovative practices and benefits. Firms need to investigate the determining factors of innovation preparedness as organizational innovation practices are catalyzed through internal elements. This study evaluates small and medium firms’ readiness to adopt and execute collaborative innovative projects within a future cluster and its impacts on organizational advantages, intentions, and attributes. Thereby, three dimensions were considered in examining organizational preparedness, namely, climate, culture, and motivation. A total of 70 firms operating in the labeled agri-food sector in Morocco were interviewed and homogenously classified using integrated hierarchical and non-hierarchical algorithms, following a segmentation approach. Three segments were identified, stressing the degree of organizational readiness to undertake innovative projects within future service clusters. The segments varied according to the firm’s sub-sector, experience, and resources. Considering the association of readiness with benefits and practical aims, the results broaden firm preparedness understanding to adopt innovative projects. The results also illustrate the relevance of adapting both innovative and beneficial project arrangements for firms with minor to moderate experience while addressing current issues across different segments.