The mediating role of open innovation in enhancing the Saudi food industry’s integration into the global value chain

Abstract

This study examines the integration of the Saudi food industry into the Global Value Chain (GVC) by assessing the influence of key external factors, including Trade Policy (TP), Digital Business (DB), Collaborative Partnerships (CP), Ethical Issues (EI), and Sustainability Environment (SE). Open Innovation (OI) is analyzed as a mediating factor linking these elements to GVC participation. Using structural equation modeling (SEM), data from 178 decision-makers in the Saudi food sector reveal that while external factors significantly impact GVC participation, their effect is primarily channeled through OI. OI facilitates knowledge sharing, technology adoption, and collaboration, serving as a critical enabler of GVC integration. These findings underscore the transformative role of OI in leveraging external factors to enhance industry competitiveness, aligning with Saudi Vision 2030's economic diversification objectives. The study emphasizes the need for policymakers and industry leaders to promote initiatives that strengthen the global positioning of the Saudi food industry.