Open Innovation as an Adaptive Strategy in Mitigating the Challenges Posed by the Adoption of Digital Innovation and Big Data Analytics in SMEs

Abstract

Research on open innovation (OI) in SMEs, particularly in the context of digital innovations and big data (BD), often highlights the potential for these innovations to drive SME growth. While digital innovations and BD can indeed enhance OI practices by presenting new opportunities, there is a significant gap in understanding how the challenges posed by these innovations can also act as catalysts for OI in SMEs. This study addresses this gap by examining the challenges faced by SMEs when leveraging digital innovations and BD for service delivery in the agri-food sector, and how they address them through OI practices. Focusing on Agritech firms in Ghana's agri-food sector as an empirical case, we conducted qualitative exploratory research using interviews and secondary data to fill the research gap. Our findings showcase how Agritech firms adopt OI practices through strategic collaborations and partnerships with external organizations interested in agricultural interventions which was triggered by the challenges they faced in leveraging digital innovations and BD. These partnerships and collaborations also serve as anticipatory measures to tackle potential future challenges. Our findings are not only applicable to Agritech firms in the agri-food sector but also offer valuable insights for other SMEs with limited financial resources and portfolio diversification in other sectors for anticipating related challenges.