Abstract
PurposeAll firms' business models are based on their interdependencies with other parties in their ecosystems. The Internet of Things (IoT) is beginning to fundamentally disrupt the agri-food industry, forcing the ecosystem to change. When an ecosystem is transforming, the interdependencies among its actors can create friction. Technology providers and core actors should consider these interdependencies as they update their strategies for value creation and capture. The purpose of the present research is to consider what it might take for agri-food firms to capitalize on these interdependencies by moving from traditional business models to business models based on collaboration and open innovation.Design/methodology/approachThe present paper draws on data from four online focus groups that we created to discuss how to co-create the business models agri-food firms need in a constantly changing environment. The paper presents an application of phenomenon-driven research (PDR), an engaged methodology. The study method enables novel pathways to develop and implement innovative solutions. This study draws on the interaction of theory and practice and involves multiple stakeholders with varying roles in the agri-food ecosystem.FindingsThe authors found that any open innovation setup in agri-food needs to constantly reconfigure itself to balance the needs of farmers and the needs of the market. This interplay can only support the IoT-enabled ecosystem if continuous interaction and negotiation occur among various stakeholders of the food system. When the farmers' needs and the market's needs are aligned, the space for developing a collaborative and open business model is prepared.Originality/valueThe insights gained from this study inspire action and commitment to common goals when developing collaboration-based business models (CBMs). The paper offers insights for players in the agri-food industry who are considering CBMs in the course of digital transformation.
Highlights
Open innovation (OI) in the food industry is trending as a way to increase competitiveness and sustainability (Annosi et al, 2020; Kafetzopoulos et al, 2020)
The recent events related to COVID-19 are placing additional pressure on companies to look for more collaborative approaches toward innovation and business models (FAO, 2020), heightening calls to adopt a common framework for collaborative innovation in the agri-food sector, namely OI
The results suggest that in developing collaboration-based business models (CBMs) to enhance open innovation activities for an Internet of Things (IoT)-enabled ecosystem, stakeholders tend to focus on materials, technological preparedness and transferability
Summary
Open innovation (OI) in the food industry is trending as a way to increase competitiveness and sustainability (Annosi et al, 2020; Kafetzopoulos et al, 2020). Advancements in precision agriculture, farm management information systems, remote sensors and robotics have alleviated obstacles for transforming agri-food companies (Mondino and Gonzalez-Andujar, 2019), but have complicated their traditional approach to creating and capturing value. Technologies such as the internet of things (IoT), big data, artificial intelligence and blockchain are enabling the agri-food industry to evolve into a socalled system of systems that is agile, smart and decentralized (Lezoche et al, 2020), yet brings its own imposing challenges
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