Exploring how EU agri-food SMEs approach technology-driven business model innovation

Abstract

The EU agri-food sector, which is mainly composed of small and medium-sized enterprises has become more demanding in terms of technological inputs to reduce costs, improve the added value of food products, achieve sustainability issues, or address new market opportunities. The introduction of new technologies poses challenges for SMEs that lack the resources and time to cope with the technological transformation, which involves not only the assimilation of new technology in organizational processes but also business model innovation. In this context, this research aims to empirically explore the paths of agri-food SMEs engaged in the technological transformation process, based on the drivers and barriers, as well as the strategies used by these companies to overcome these barriers. In-depth semi-structured interviews with 14 EU agri-food SMEs were conducted and analysed using a combination of deductive pattern-matching and inductive approach. Based on similarities in terms of drivers, barriers, and strategies, seven main groups were identified to draw the paths of the technological transformation process for agri-food SMEs. Findings reveal that there is one common strategy that is adopted by all 14 companies, namely the employment of different types of partnerships and collaborations that allow companies to successfully enter new markets. The study contributes to the literature on technology transformation related to the agri-food sector, by proving insights into how EU agri-food SMEs cope with this process.