Innovation and rural context: An exploratory case study of a small rural enterprise from the Czech Republic

Abstract

This study identifies i) factors that encourage small rural enterprises to innovate and ii) obstacles to introducing innovation. Using a case study of a rural business in the Czech Republic, the paper reveals that although rural businesses may experience innovation barriers, such as inadequate human resources and volatile market conditions, they can innovate, respond quickly and effectively to emerging market circumstances and turn threats into opportunities for growth. Importantly, many of the challenges and opportunities for innovation interplay with each other, with some obstacles becoming a foundation of creative and innovative solutions that help to develop a sustainable, modern and efficient enterprise. We highlight that the innovation of rural enterprises can be an outcome of pull and push factors that influence both product innovation and business innovation processes. Pull factors represent incentives and opportunities to stimulate rural innovation. Push factors, on the other hand, necessitate change and create pressures that must be addressed to ensure business longevity. The paper also shows that successful innovation is not free from agency, with the strategic vision and innovation outlook of business owners being a significant driver of innovation practices. Finally, our study shows that the innovation of rural enterprises depends on local, regional, national and international connections, and goes beyond rural areas, with a ‘think local and act global’ approach helping to harness opportunities in wider markets.